Ties Weekly Update #23

23 September, 2004

CONTINUING EXCELLENT PRODUCTION

As of September 23, 2004, we have installed over 185,000 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 23^rd 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 over 235,000 ties this production season.

¨ The Railworks tie crew started working on Wednesday the 8^th of September near 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 this crew to complete by mid-October.

¨ The LA Colo tie gang will returned Friday the 17^th and began installing ties at MP 232 on the Huron sub heading westward toward the SD state line. This crew is currently west of MP 240 and has installed over 4,000 of the 20,000 ties that are required on this project.

¨ Foreman Steve Koser’s crew has begun installing nearly 5000 ties in the Muscatine area and will complete this project late next week. At that time they will return to CWR on the Kansas City sub

¨ Jim Nemec’s west tie gang completed their tie project near Dakota Jct. late last week and has moved move northward on the lower Black Hills sub toward the Smithwick area where they will complete the Black Hills portion of this year’s tie program.