Ties Weekly Update #1

16 April 2004

ON SCHEDULE

To date, we have installed 9,000 or the 182,000 ties scheduled to be installed by November 24^th 2004. As of now, it appears we will meet that schedule. We have made some modifications to the plan by focusing more resources on the IC&E “exempted” track south of Owatonna, thus taking away some of the early effort on the DM&E. But basically, we are on track with the overall program.

¨ DME Tie gangs were scheduled to start on April 5. They trained and went over safety requirements the first few days and began installing on the 8^th.

¨ The LA Colo gang on the IC&E started on the 5^th with a partial crew. The LA Colo gang that was scheduled to start on DM&E on April 12 did not start due to a change in plans. Both crews will now be working on the IC&E and will finish that project on time.

¨ As of April 15, 2004 120,000 ties have been delivered.

¨ The remaining 62,000 ties are scheduled to be here by June 30, 2004

¨ As of April 15, 2004 a total of 9,000 ties have been installed.