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Union Pacific Railroad Invests $12.9 Million for Track Improvements to Its Line from Watsonville to San Lucas

Roseville, Calif., March 08, 2011 – Union Pacific Railroad will continue improving California's transportation infrastructure with a $12.9 million investment to enhance the rail line that runs from Watsonville to San Lucas. The 76-mile project includes installing new rail and more than 82,000 railroad ties along this premium railroad corridor through the central coast of California. Crews will spread 42,000 tons of rock ballast to ensure a stable roadbed.

Union Pacific plans to spend approximately $3.2 billion in 2011 to support America's current and future freight transportation needs and enhance the safety and efficiency of the railroad's 32,000-mile network. Improvement projects like this one are an example of Union Pacific continuing to support its customers' business through strategic investments.

Improved and additional rail capacity benefits everyone. It allows freight rail service to grow, helping to build a cleaner environment. Union Pacific can move one ton of freight nearly 500 miles on a single gallon of diesel fuel, and, according to the U.S. Environmental Protection Agency, freight trains are nearly four times more efficient than trucks. Motorists also benefit from reduced congestion on highways as a single Union Pacific train can remove up to 300 trucks from our roads.

About Union Pacific

Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally friendly and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico.

Media Contact: Aaron Hunt, 916-789-6019 or amhunt@up.com.

The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.