Ties Weekly Update #30

11 November, 2004

LAST TWO TIE PROJECTS NEARING COMPLETION!!

As of November 11^th, 2004, we have installed over 240,000 of the 245,000 ties now scheduled to be installed by November 24^th 2004. The last two tie projects for 2004 were started last week with Wes Risseeuw’s crew installing ties on the PRC sub of the DM&E and the LA Colo crew installing ties on the Kansas City sub of the IC&E.

Preparations are now being made for the 2005 and beyond tie programs as well as all of the other capital programs on both properties. Preliminary figures indicate we should be installing somewhere in the vicinity of 125,000 ties for the 2005 year.

¨ Steve Koser’s crew finished their tie installation projects for the year with the completion of a 10,000 tie project near Muscatine. They will now install curve rail for the remainder of the year.

¨ The LA Colo crew began installing over 10,000 ties on the double track of the Kansas City sub last week and will complete that project over the weekend or early next week.

¨ Jim Nemec’s west tie gang will be installing the last 2,000 ties of their production year over the next couple weeks near Wasta SD.

¨ Wes Risseeuw’s tie crew will complete the installation of nearly 7,000 ties near Midland by the middle of next week to complete their tie production year.

¨ Taking all things into consideration, the siding additions, the siding extensions, the Florence connection and the additional projects, we now expect to install over 245,000 ties this production season.