Surfacing Monthly Update #8

20, August 2008

2008 TO BE ANOTHER BIG YEAR FOR SURFACING CREWS ON THE TWO RAILROADS. NEARLY 1,000 MILES OF TRACK TO BE SURFACED USING OVER 200,000 TONS OF BALLAST!!

The Surfacing crews on the DM&E and IC&E Railroads will have another busy year in 2008 as we have scheduled nearly 800 miles of surfacing and over 150,000 tons of ballast for the year. We have currently scheduled one contracting crew to supplement our own forces with the projected needs. All crews are active with their surfacing operations at this time. Details of the crews are listed below.

¨ The DM&E is scheduled to operate four Company surfacing crews in 2008 to perform the needed surfacing. These crews will be under Foremen Bob Tech, Jared Hook, Mike Kellar and Kent Maxon. Surfacing will begin in late March and continue through Thanksgiving, weather permitting.

¨ The IC&E Railroad will have three permanent IC&E crews and one seasonal crew to do the surfacing behind the tie and steel projects as well as the annual maintenance surfacing needs. Foremen will be Mike Cherne, Dave Kleinow, and Remington Hill.

¨ All of these crews will have Jackson 6700 surfacing equipment.

¨ A contracting crew, American Railroad Builders, from Northwood, Iowa, will be assisting with surfacing requirements on the IC&E on the Chicago, Rockford and Marquette subs.

¨ All ballast will again be supplied by Pete Lien, LG Everist and New Ulm Quartzite Quarry in 2008.