State of the Railroad

IC&E

Update: 5/8/2008 1030

· Detouring and re-routing of traffic is continuing. Repairs to the main line at the derailment site at Turkey River are continuing. Our best estimate for the track to be back in service is now Sunday.

5/5/2008 1030

· Detouring and re-routing of traffic is continuing. The main line in Davenport is now back in service, about 12 hours ahead of our earlier estimate. Repairs to the derailment site at Turkey River are continuing and our estimate is Friday for the track to be back in service.

5/4/2008 0900

· Detouring and re-routing of traffic is continuing. Late Monday is our estimate for the main line to be back in service in the Davenport area. Derailment site repairs should be completed by late Thursday or Friday (8^th or 9^th).

5/3/2008 0900

· Detouring and re-routing of traffic is continuing. Latest estimate on the flood waters receding in the Davenport area still shows that Monday will likely be our first day of operation in that area. Derailment site repairs have been slowed due to adverse weather conditions in that area and our latest estimate for the track to be back in service is Thursday. Every effort is being made to keep all customers serviced with cars and overall disruptions have been very minimal.

5/2/2008 1000

· Detouring and re-routing of traffic is continuing. Best estimate on the flood waters receding in the Davenport area shows probably next Monday or Tuesday before our track can be placed back into service. Derailment site repairs are continuing and our best estimate for track back in service is next Wednesday or Thursday.

5/1/2008 1030

· Latest weather estimates show heavy thunderstorms and significant rainfall in both the derailment and flood areas starting later today through Friday. Depending on the accuracy of these forecasts, our expected track back into service for both issues could be delayed up to an additional 24-72 hours from our earlier Sunday/Monday estimate. Detouring and re-routing of traffic is continuing.

4/30/2008 1300

· Our plans for detouring and re-routing of trains is continuing and overall has been quite successful. The current estimate is late Sunday/early Monday for the high water to recede in the Davenport area. The same time frame is anticipated for repair of the track at the derailment site of Turkey River.

4/28/2008 0945

· Current estimates to repair the derailment site and for the flood waters to recede remain as previously reported. Detours and rerouting of traffic are proceeding according to plan and every effort is being made to minimize the disruptions to service.

4/27/2008 0900

· We anticipate our main line to be out of service at the Turkey River derailment site for 5-7 days. Plans to move trains via detours and alternative routing are in place and we expect to be able to serve all customers in that area fairly efficiently and timely. The water levels have risen as expected in the Davenport area and we have taken the main line in that area out of service due to high water. Plans are also in place in that location to keep all traffic moving as expeditiously as possible and to keep all customers current with their needs, both empties and loads.

4/26/2008 0900

· A major derailment has occurred at Turkey River, Iowa (near Marquette) and we anticipate our north-south main line to be out of service for 7-10 days until repairs can be completed. Water levels are continuing to rise along the Mississippi and we expect our main line in the Davenport area to go out of service tonight or tomorrow due to high water. Latest estimates show that the water levels may persist for up to a week in this area. Our current operational planning consists of multiple alternative detours and reroutes to keep our traffic moving to the maximum extent possible. We are also working with customers to find acceptable alternatives throughout the duration of this interruption.

4/25/2008 0900

· Heavy rains and storms in eastern Iowa are causing the Mississippi and other tributary rivers to rise significantly. It is anticipated that sometime Sunday, the 27^th, that the river may begin flooding certain areas of our trackage in the Davenport/Muscatine area. The best estimates at this time anticipate a 2-3 day duration of high water before water levels start to subside. At this time, no train operations are affected. We are planning in advance for such an occurrence in order to minimize any impact to the operation.

.