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Union Pacific and Progress Rail Services to Launch Initial Operation of Ultra Clean Diesel Locomotive for Intermediate Line Haul Service

Omaha, Neb., May 21, 2009 – Union Pacific Railroad and Progress Rail Services today announced their plan to launch the initial operation of an ultra clean diesel SD40-2 locomotive equipped for intermediate line haul service. Equipped with state-of-the-art after-treatment, this customer evaluation unit will begin Union Pacific operations this month with an initial revenue-service run between the railroad's San Antonio and Fort Worth service units, respectively.

"We are excited about the prospects of bringing more environmentally friendly locomotives into service while still meeting our operational needs," said Bob Grimaila, Union Pacific senior assistant vice president, Safety and Environment.  "We know there are challenges ahead as we evaluate performance under demanding rail operations, but we remain committed to support this project and commend our partners, Caterpillar and Progress Rail Services, for their collaborative efforts in developing this promising technology."

The Progress Rail PR30C-LoNOx Locomotive has been re-powered with a single 3,005 horsepower, low-emission, Caterpillar clean-diesel engine. It meets EPA's Tier 2 standards and is retrofitted with an advanced emission control technology.  That technology routes the exhaust through a diesel oxidation catalyst prior to entering the selective catalytic reduction (SCR) chamber, where oxides of nitrogen (NOx) emissions are reduced by more than 90 percent from the original 1970s vintage engine.

"The use of after treatment to reach these levels of emissions is new territory for the rail industry and we are pleased to be the first with SCR for large mobile engine applications," said Billy Ainsworth, CEO, Progress Rail Services. "By leveraging the expertise of Caterpillar, an established leader in clean diesel technology, we are confident we can bring this cutting-edge technology to the railroad industry just as we have been providing it in other applications. Additional prototypes, all powered by Caterpillar model 3516, 3005 horsepower diesel engines, will be retrofitted and tested with this system, making them among the cleanest locomotives in America.  The durability and performance of the unit will be closely monitored and evaluated over a six-month period to ensure safe and dependable operations."

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 responsible 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, making it North America's premier rail franchise.

About Progress Rail

Progress Rail, a Caterpillar subsidiary, is one of the largest providers of outsourced maintenance and repair services to the railroad industry in North America. It is headquartered in Albertville, Alabama, and currently has more than 100 facilities throughout the United States, Canada and Mexico. Its customers include all of the major North American, or "Class 1" railroads, as well as regional railroads, public transit authorities, private car owners, railcar builders and lessors, and foundries for steel scrap.  www.progressrail.com

About Caterpillar

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.  More information is available at www.cat.com

 

For further information, contact Tom Lange at 402-544-3560 or tomlange@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.