Union Pacific and the Texas Commission on Environmental Quality Announce Significant Clean Air Progress

New ultra-low emission switch locomotives are helping realize emission reductions of 57 percent over contract goal for Dallas/Fort Worth, Houston and San Antonio metro areas

Dallas, Texas, December 12, 2007 – Today, the Texas Commission on Environmental Quality (TCEQ) and Union Pacific announced a 57 percent over-achievement of the contract goal for emission reduction in Texas with the help of new environmentally friendly ultra-low emission switch locomotives.

Developed with incentives from the TCEQ’s Texas Emission Reduction Program (TERP) to help improve air quality in the state, Union Pacific is operating the ultra-low emission switch locomotives in rail facilities in the Dallas/Fort Worth, Houston and San Antonio metro areas. Of the 98 switch locomotives, 46 units are serving the Dallas/Fort Worth Metroplex, 43 units are serving the Houston metro area, and nine units are serving the San Antonio metro area. When compared to older units being replaced, each ultra-low emission switch locomotive reduces nitrogen oxide and particulate matter emissions by 54 to 63 percent, while using about 30 percent less fuel. The fuel savings also mean a reduction of greenhouse gases of about 30 percent.

"Today, the state of Texas and Union Pacific are pleased to present Dallas, Fort Worth, Houston and San Antonio these environmentally friendly locomotives, which are helping achieve cleaner air," said TCEQ Chairman Buddy Garcia. "Through incentives from the Texas Emission Reduction Program and an investment by Union Pacific, there are now 98 ultra-low emission locomotives providing over 38 percent of all the emission reductions for the TERP projects approved in 2005."

Manufactured by Railpower Technologies Corp., the 98 new 2,000-horsepower "Generator-Set" or "Genset" locomotives are powered by three 667-horsepower, ultra-low emissions EPA Tier 3-certified off-road diesel engines. Each engine turns a generator that produces electricity for motors connected to the axles of the locomotive wheels.

"Union Pacific truly appreciates the vision and great flexibility of the TCEQ to provide the incentives to encourage the development of the ultra-low emission Genset technology," said Joe Adams, vice president - Public Affairs for Union Pacific’s Southern Region. "We look forward to working with the TCEQ in the future to continue to help reduce emissions in the state."

Union Pacific began studies and tests of a Genset locomotive in 2002. Today, the company has a total of 159 of these types of units, which are also serving facilities in California.

Along with the 98 new Genset switch locomotives operating in Texas, Union Pacific also operates 10 hybrid "Green Goat" ultra low-emission locomotives and 13 other low-emission locomotives.

Union Pacific’s "Green" Fleet

Currently, about 50 percent of Union Pacific’s more than 8,500-unit locomotive fleet is certified under existing EPA Tier 0, Tier 1 or Tier 2 regulations governing air emissions. That gives Union Pacific the most environmentally friendly locomotive fleet in the nation.

Union Pacific is also testing "aftermarket" technologies to determine if they reduce emissions in older locomotives. Among these is an experimental "oxidation catalyst" filtering canister or "Oxicat" installed in a high-horsepower long-haul locomotive. This is the North American rail industry’s first long-haul diesel electric locomotive modified with "after-market" experimental technology aimed at reducing exhaust emissions. The special catalytic material chemically reduces the amount of unburned hydrocarbons, carbon monoxide and particulate matter generated by the diesel engine, much like a catalytic converter on today’s cars and trucks.

Union Pacific is also testing a Diesel Particulate Filter (DPF) attached to a low-horsepower yard locomotive. This year-long field test is also the North American rail industry’s first experimental "after-market" exhaust system filter to determine if it will reduce diesel engine emissions in older locomotives used in rail yards.

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 and serves the fastest-growing U.S. population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul 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, making it North America’s premier rail franchise.

About Railpower

Railpower Technologies (TSX: P) is engaged in the development, construction, marketing and sales of specialized, patented, environmentally friendly technology systems for the freight transportation and related industries. Railpower's technologies significantly reduce fuel usage, operating and maintenance costs and emissions. While Railpower's origins are in the freight transportation industry, its technologies have broad potential and applications in other markets and industries. Railpower's corporate headquarters is in Montreal, Quebec, with the U.S. office in Erie, Pennsylvania.

For further information, contact Joe Arbona, Union Pacific, (832) 257-4363.

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.