Ties Weekly Update #24

1 October, 2004

CONTINUING EXCELLENT PRODUCTION

As of October 1, 2004, we have installed over 190,000 of the 235,000 ties now scheduled to be installed by November 24^th 2004. The tie crews had an excellent week of production!!

¨ As of October 1 over 230,000 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. We may attempt to install another 5,000 or more ties yet this year.

¨ The Railworks tie crew is over ½ way done on their portion of the tie project and are currently done installing ties between De Smet and Iroquois. We expect this crew to finish all the way to Huron by early the week of October 18^th.

¨ The LA Colo tie gang 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 near Tyler and is expected to complete their portion of the tie installation by October 12^th.

¨ Foreman Steve Koser’s crew has begun installing nearly 5,000 ties in the Muscatine area and will complete this project around the 4^th of October. At that time they will return to installing CWR in curves on the Kansas City sub.

¨ Jim Nemec’s west tie gang completed their tie project near Dakota Jct. late last week and has moved 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.