Ties Weekly Update #22

16 September, 2004

CONTINUING EXCELLENT PRODUCTION

As of September 16, 2004, we have installed over 180,000 of the 235,000 ties now scheduled to be installed by November 24^th 2004. The tie crews had an excellent week of production this week!!

¨ As of September 16^th over 225,000 ties have been delivered to our properties and are either installed, on the ground, or in the process of being unloaded by the Brandt truck.

¨ Considering the siding additions and extensions and the Florence connection, we now expect to install 235,000 ties this production season.

¨ The Railworks tie crew started working on Wednesday the 8^th around Iroquois and has installed over 5,000 ties between MP 327 and Huron so far. The total for this area is over 20,000 ties, which we expect to have completed by mid-October.

¨ The LA Colo tie gang will return Friday the 17^th to the Huron sub, around MP 232, and will install approximately 23,000 ties between Tracy and the state line by the end of October.

¨ Foreman Steve Koser’s crew has been installing curve rail on the Mason City, Marquette and Chicago subs the past several weeks. They will spend most of the remainder of the year on this curve patch project, except for a short time in September when they will install about 5,000 ties in the Quad Cities area.

¨ Jim Nemec’s west tie gang will complete their tie project near Dakota Jct. later this week and will then move northward on the lower Black Hills sub toward the Smithwick area where they will complete the Black Hills portion of their project. After completion of the Black Hills project, this crew will travel to the PRC sub to install ties at the bottom of Wall Hill.