Credit Suisse First Boston - Union Pacific

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

Five Critical ResourcesEmployeesLocomotivesFreight CarsMain Track CapacityTechnology/ QualityProcessesTerminal Capacity

Locomotive ProductivityFuel EfficiencyC Rate (Gallons / 000 GTMs)1.385 1.388Fleet Modernization:• Streamlined Fleet• Maintenance Simplification• Fuel Efficiency• Horsepower Per Trailing Ton• Reliability1.3431.3231999 2000 2001 2002

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% IncreaseRevenue Ton Miles - 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 DwellHoursLocomotive Terminal DwellHours28.2-9%14.9-5%14.225.71999 2002 1999 2002

Leveraging TechnologyGPS LocomotiveTrackingATCSWorkOrder

Main Track ProductivityMillion Gross Ton-Milesper Mile of Road32.429.931.131.3• Dispatching Effectiveness• Alternate Routes• Maintenance Practices19992000 2001 2002

Quality Service Costs Less15.3Reduced Failure CostsCost of Quality - % of Revenue13.912.511.3Improved ServiceCustomer SatisfactionAll-Time“Bests”78%73%Service Delivery Index1999 2000 2001 2002 1999 2000 2001 2002

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

Union Pacific Corporation