Credit Suisse First Boston - Union Pacific

Credit Suisse First BostonMarch 12, 2003

Disclosure StatementThis presentation and related materials may contain statements about the Corporation's future that are not statementsof historical fact. These statements are, or will be, forward-looking statements as defined by the Securities Act of1933 and the Securities Exchange Act of 1934. Forward-looking statements include, without limitation, statementsregarding: expectations as to operational improvements; expectations as to cost savings, revenue growth andearnings; the time by which certain objectives will be achieved; estimates of costs relating to environmentalremediation and restoration; proposed new products and services; expectations that claims, lawsuits, environmentalcosts, commitments, contingent liabilities, labor negotiations or agreements, or other matters will not have a materialadverse effect on our consolidated financial position, results of operations or liquidity; and statements concerningprojections, predictions, expectations, estimates or forecasts as to the Corporation's and its subsidiaries' business,financial and operational results, and future economic performance, statements of management's goals and objectivesand other similar expressions concerning matters that are not historical facts.Forward-looking statements should not be read as a guarantee of future performance or results, and will notnecessarily be accurate indications of the times at, or by which, such performance or results will be achieved.Forward-looking information is based on information available at the time and/or management's good faith belief withrespect to future events, and is subject to risks and uncertainties that could cause actual performance or results todiffer materially from those expressed in the statements. Important factors that could affect the Corporation's and itssubsidiaries' future results and could cause those results or other outcomes to differ materially from those expressedor implied in the forward-looking statements include, but are not limited to: whether the Corporation and itssubsidiaries are fully successful in implementing their financial and operational initiatives; industry competition,conditions, performance and consolidation; legislative and regulatory developments, including possible enactment ofinitiatives to re-regulate the rail business; natural events such as severe weather, fire, floods and earthquakes; theeffects of adverse general economic conditions, both within the United States and globally; any adverse economic oroperational repercussions from terrorist activities and any governmental response thereto; war or risk of war; changesin fuel prices; changes in labor costs; labor stoppages; and the outcome of claims and litigation, including thoserelated to environmental contamination, personal injuries, and occupational illnesses arising from hearing loss,repetitive motion and exposure to asbestos and diesel fumes.Forward-looking statements speak only as of the date the statements were made. The Corporation assumes noobligation to update forward-looking information to reflect actual results, changes in assumptions or changes in otherfactors affecting forward-looking information. If the Corporation does update one or more forward-looking statements,no inference should be drawn that the Corporation will make additional updates with respect thereto or with respect toother forward-looking statements.

Economic ViewCarload Growth2003 Vs 2002 - Through March 7thAutomotive+8%IndustrialIntermodal+2%+6%Challenges• Uncertainties of WarChemicals+2%• Fuel PricesAgricultural0%EnergyTotal+2%

Total Quality Management SystemImprove & AdjustCustomer RequirementsEmployeeDevelopmentPlanning& ControlBusinessProcessesCustomer SatisfactionImproved Business ResultsTools:• Six Sigma• Workout• PDCA• QSP• Customer SatisfactionSurveys• Ideaworks

Railroad ProductivityGTMs (Millions)/ Employee22187% CAGR1410684 86 88 90 92 94 96 98 00 02

Five Critical ResourcesEmployeesLocomotivesFreight CarsMain Track CapacityTechnology/ QualityProcessesTerminal Capacity

Locomotive PartnersAC Units with Distributed Power =• Improved Tractive Effort• Asset Utilization– Fewer Locomotives (3 Units Vs. 4)– Longer Trains

Freight Car Productivity7-Day CarloadingsIn 000’sOnline Car InventoryIn 000’s+7%178.5311.4 +1%313.2473.1167.110% 10% Increase IncreaseRevenue Revenue Ton Ton Miles Miles - Billions Billions518.71999 20021999 2002

Track Productivity• Reduced Installation & Maintenance Costs• Extended Wear Life• Minimize Terminal Connections & Dwell Times• Manage Train Operations

Terminal ProductivityFreight Car Terminal Dwell28.2Hours-9%25.7Locomotive Terminal Dwell14.9Hours-5%14.21999 2002 1999 2002

Leveraging TechnologyGPS LocomotiveTrackingATCSWorkOrder

Main Track ProductivityMillion Gross Ton-Milesper Mile of Road29.931.131.332.4• Dispatching Effectiveness• Alternate Routes• Maintenance Practices19992000 2001 2002

Quality Service Costs LessReduced Failure CostsCost of Quality - % of Revenue15.313.912.511.3Improved ServiceCustomer SatisfactionAll-Time“Bests”78%73%Service Delivery Index1999 2000 2001 200219992000 2001 2002

Operating MarginRail & Other Operations20.2%17.5%18.3%18.6%1999 2000 2001 2002

Union Pacific is Committed To Be A Company Where….Customers Want to Do BusinessEmployees Are Proud to WorkShareholder Value is Created

Union Pacific Corporation