Surfacing Weekly Update #1

15 April 2005

SURFACING JUST GETTING STARTED

The Surfacing crews on the DM&E and IC&E Railroads will have another big year in 2005 with more than 650 miles of track needing surfacing.

¨ The 53 ballast cars with the air operated gates that were leased for the 2004 season, were kept for another year to assist with projects which will require an estimated 200,000 tons of ballast.

¨ Surfacing started March 28, 2004 on the west end of DM&E on the Crawford sub with Bob Tech’s crew. All other crews will be starting up within the next few weeks. We expect to use a total of 10 surfacing crews in 2005, 8 with our own MOW forces and 2 contracting crews.

¨ 2005 Goals include approximately 200,000 tons of ballast and 650 miles to be surfaced.

¨ Surfacing has just begun and we are currently at about 10 pass miles for the young season.