System-Wide Monthly Update #2

24, May 2006

The 2006 capital program has gotten off to a great start in April and the first half of May with two of the four CWR projects already completed and a third nearly 25% done. Over a third of the 150,000 ties projected to be installed for the year have already been installed and four of the 9 major tie projects are already finished. Highlights are listed below

¨ Of the four major CWR projects scheduled for 2006, two of them, a ten mile project near Sanborn MN. on the DM&E and a fourteen mile project south of Austin on the IC&E, are already completed. The third project is 11 miles near Bellevue which was started on May 17th and the last is 17 miles on track # 2 between Moseby Jct and Lawson on the Double track north of Kansas City. The last part of the CWR program is our annual curve patch which will involve the replacement of rail in nearly 40 curves totaling nearly 10 track miles. Further updates for the CWR program are on the “rail page”.

¨ We have done preliminary engineering work for the Calmar siding and will be getting bids for grading work shortly. We expect to have grading started by the end of June and the siding in service before the end of the year.

¨ Three of the 40 new turnouts that are scheduled to be installed on the two properties in 2006 have been installed thus far. Other turnouts are scheduled to be installed soon and many are being delivered to project areas. More details on the “rail page”.

¨ There have been over 60,000 ties of the 150,000 scheduled for installation in this year’s program already installed on the two properties. More details of the tie projects will be on the “tie update” page.

¨ There will be several major bridge projects on the two properties this year with the most notable being the redecking and rail renewal on Bridge # 1500, the Missouri River bridge in Pierre SD. More information on bridge projects are included on the “Bridge page”.

¨ Surfacing estimates for 2006 are over 850 miles with over 180,000 tons of ballast used. A progress report on the surfacing schedule is on the “surfacing page”.