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Union Pacific Railroad Investing $20 Million to Test Emissions-Reducing Locomotive Technology in California

Collaboration with California Air Resources Board and Electro-Motive Diesel Takes Next Step Toward U.S. EPA Tier 4 Locomotive Emissions Standard

Roseville, Calif., August 13, 2012 – Union Pacific Railroad is investing $20 million to test new technology designed to reduce diesel emissions from freight locomotives in California. A series of 25 experimental locomotives will be based in two Union Pacific rail yards in California as part of a rigorous test of emissions-reducing technologies. The investment represents Union Pacific's latest effort to further reduce emissions and move closer to the U.S. EPA's Tier 4 locomotive emissions standards for new locomotives starting in 2015. The experimental locomotives are intermediate line-haul units, with an operating range of approximately 200 miles, and will be used exclusively in California.

"The testing and analysis of these locomotives is part of an ongoing initiative at Union Pacific to develop and use technology in pursuit of emissions reductions," said Mike Iden, Union Pacific general director, car and locomotive engineering. "This effort is emblematic of our continued commitment to provide environmentally responsible freight transportation."

One locomotive in this series of 25 will be based in Roseville to test the combined use of exhaust gas recirculation (EGR), diesel oxidation catalyst, and diesel particulate filtering. In testing the combined benefits of these three technologies on one freight locomotive, this Union Pacific unit is the closest an Electro-Motive Diesel (EMD) locomotive has come to achieving Tier 4 standards. The move toward Tier 4 is made up of a 45 percent reduction in the oxides of nitrogen emissions compared to the current Tier 2 standard and an 85 percent reduction in particulate matter emissions based on preliminary analysis. Union Pacific and the California Air Resources Board will jointly analyze the emissions reductions capability of this locomotive over the next 18 months.

Nine of the experimental units fitted with the EGR technology are based in the Colton, Calif., area and will be tested through operations in the southern California region.

The remaining 15 experimental units will work out of Roseville for operations in northern California. These locomotives have the capability to be retrofitted with EGR and other emissions reduction technologies as testing progresses. The Proposition 1B – Goods Movement Emission Reduction Program is partially funding this set of locomotives.

Testing on all 25 locomotives is scheduled to last through 2014.

In partnering with EMD to develop these experimental locomotives, Union Pacific continues working to upgrade and improve the fuel-efficiency of its locomotive fleet. Since 2000, Union Pacific has invested approximately $6.56 billion to purchase locomotives that meet the EPA's updated emissions guidelines and an additional $200 million to upgrade older locomotives in the fleet to reduce emissions and increase fuel efficiency. That's nearly 3,800 new, fuel-efficient locomotives in all. These purchases allow Union Pacific to retire older, less-efficient locomotives, thus improving overall fleet fuel economy and reducing Union Pacific's emissions rate.

About Union Pacific

One of America's iconic companies, Union Pacific celebrates its 150th anniversary in 2012. Abraham Lincoln signed the Pacific Railway Act of July 1, 1862, creating the original Union Pacific. Today, Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP), linking 23 states in the western two-thirds of the country by rail and providing freight solutions and logistics expertise to the global supply chain. From 2000 through 2011, Union Pacific spent more than $31 billion on its network and operations, making needed investments in America's infrastructure and enhancing its ability to provide safe, reliable, fuel-efficient and environmentally responsible freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. The railroad serves many of the fastest-growing U.S. population centers and emphasizes excellent customer service. Union Pacific operates competitive routes from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways.

Union Pacific media contact: Aaron Hunt at 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.