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Union Pacific and Progress Rail Services Ultra-Clean Diesel Locomotive for Intermediate Line Haul Service Achieves 500 Service Hours Milestone

Omaha, Neb., October 05, 2009 – Union Pacific Railroad and Progress Rail Services today announced that the ultra-clean diesel PR30C-LoNOx locomotive being tested in intermediate line haul service has successfully achieved more than 500 operational hours.  The locomotive -- powered by a 3516 Caterpillar engine -- has been retrofitted with a state-of-the-art after-treatment system, making it one of the cleanest locomotives operating in the United States.

The prototype intermediate line haul locomotive has more power than the typical 2000-horsepower 4-axle Genset "switching" locomotive used around terminals, but is less powerful than the 4400-horsepower 6-axle "line haul" locomotives used for transcontinental freight service. Union Pacific plans to operate these locomotives in typical regional service in the Midwest and in California.

"This is a critical milestone for us in our efforts to bring more environmentally friendly locomotives into revenue service," said Bob Grimaila, Union Pacific senior assistant vice president, Safety and Environment.  "Investing in the latest technology that is capable of meeting the demanding requirements of rail operations is essential.  This important benchmark is one more positive step in a challenging process to develop new technology that will meet EPA's future emission standards."

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 nearly 75 percent from current standards for new locomotives.

In early testing, the SCR after-treatment system continues to perform as intended, with only minor issues encountered and those have been limited to ones which would be anticipated with this type of technology launch.  With the 500-service hour milestone complete, the development team will focus its efforts on the all-important 1,000-hour service plateau.  This durability and performance testing will continue in Texas for the next several weeks to ensure safe and dependable performance before the unit begins operating in revenue service in California in the fourth quarter.

"We share in the excitement of achieving this milestone," said Billy Ainsworth, CEO, Progress Rail Services.  "But more importantly, we are confident in the expertise, history of quality and cutting-edge innovation of a market leader like Caterpillar to help us deliver the dependable and durable products that our rail customers demand."

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

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.