Rail Monthly Update #4

13, July 2005

CWR PROGRAM OVER 90% COMPLETED!!!

To date, we have installed over 36 of the roughly 40 track miles scheduled to be completed by the end of the production season. The 30 miles scheduled to be laid by RJ Corman was completed before the end of May. This Corman crew was the same crew that laid over 60 track miles on the DM&E in 2004 and nearly 90 miles of CWR on the Pierre sub in 1996. The IC&E tie/rail crew and the LA Colo crew will complete the 2005 CWR program when they lay the curve patch rail as the year progresses.

¨ RJ Corman completed the first 15 miles of CWR between Revere and Sanborn on schedule on the 27^th of April.

¨ This same Corman crew completed the second 15 mile section of CWR north of Plymouth on the IC&E on Wednesday the 25th of May.

¨ The LA Colo crew has completed the installation of the CWR in curves on the Mason City, Marquette and Chicago subs within the past two weeks.

¨ Steve Koser’s crew has installed curve rail on 4 curves on the double track to complete his crew’s work in that area this year. They will continue northward installing ties and rail where needed and expect to have the last CWR installed by the end of September on the River sub

¨ Darren LeGarre’s switch and crossing crew has completed the installation of 6 Revere CWR switches, 3 Philip SD switches and 2 New Ulm/ Hanska switches and will continue to assist with the Hanska project for the next several weeks. This crew plans to travel to Belle Fourche SD to assist with the installation of 4 switches when scheduling permits.

¨ Randy Parmenter’s switch and crossing crew has assembled and installed all of the switches in the Plymouth CWR area and recently has renewed all of the crossings through this project area. Over the next few weeks they will be installing two new switches at Luana for a new customer plus assisting with several state crossing projects.