All-Time Record Carloadings Highlight Union Pacific's Improved Service

Network Management Initiatives and Capacity Investments Drive Performance

Omaha, Neb., June 16, 2006 – For the first time ever outside of peak season, Union Pacific on Thursday set a new all-time record for carloadings in a seven-day period by hauling 200,700 railcars for customers across North America’s largest railroad. Prior to this week, the seven-day carloading record was 198,416 set during peak shipping season on November 23, 2005.

"Reaching this record level in June, before the fall peak shipping season, is an indication of the improving efficiency of our railroad and the strength of demand for our services," said Jim Young, President and Chief Executive Officer. "Especially encouraging is the fact that we handled this record volume with improved velocity and reduced terminal dwell compared to last November. This is the result of our network management initiatives and investment in capacity. While I’m pleased that we are providing more efficient service to our customers, we remain focused on driving further improvements."

Current Business Group Service and Volume Highlights Include:

  • Overall, second quarter volume is up 5 percent through the first ten days of June.
  • Agricultural Products volume is up 3 percent. Ethanol growth, Mexico imports, feed and corn shipments are all running above last year’s levels. Union Pacific is handling a 57 percent increase in ethanol shipments, fueled by growing demand and continued development of ethanol unit trains, which provide faster transit times versus normal carload movement.
  • Auto volumes are continuing their growth trend from the first quarter, up 5 percent. Improved multi-level load-to-load cycle times and improved performance on auto parts resulted in a record May and the fifth-highest volume month ever.
  • Chemical volume trends have improved from a slow start in April and are flat quarter-to-date. Weaker fertilizer volumes are offsetting strength in petroleum products, plastics and phosphate rock. Dwell time, a critical service measure for the chemical business, has improved.
  • Energy volumes have turned around significantly from the first quarter, up about 8 percent, quarter-to-date. May was a record month for coal shipped from the Southern Powder River Basin, as well as a record month for loadings originating on the North Fork Branch in Colorado. That success made May the second-highest month ever for Union Pacific coal loadings, topped only by March 2005.
  • Industrial Products volumes are tracking below the strong trend seen in the first quarter. In particular, softer lumber and paper volumes have offset growth in steel and rock shipments. May was the best month ever for rock carloadings – 34,442 – with the southern Texas rock network leading the way with 28,322 carloads. This tops the previous southern rock record set in August 2002 and helping to drive the largest May rock volume since 1996.
  • Intermodal volumes remain strong, up 7 percent in the quarter, and new volume records have been set every month thus far in 2006. Service has improved for Blue Streak – Union Pacific's truck-like priority service for intermodal containers and trailers – and customers are voting with their business. Volume for Blue Streak has doubled year-over-year.

Jobs at Union Pacific

Currently, Union Pacific has job openings at many locations throughout its 23-state operating system. Opportunities are available in train service, skilled disciplines (e.g., diesel mechanics and electricians) and management. Interested applicants are encouraged to visit www.up.com and click on "Jobs at UP."

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.

For further information, contact Kathryn Blackwell (402) 544-3753 or cell (402) 319-4288.

This press release may contain statements about the Corporation’s future that are not statements of historical fact. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, without limitation, information or statements regarding: expectations as to continued or increasing demand for rail transportation in excess of supply; expectations regarding operational improvements, including the effectiveness of network management initiatives that have been or will be implemented to improve system velocity, customer service and shareholder returns; and statements concerning projections, predictions, expectations, estimates or forecasts as to the Corporation’s and its subsidiaries’ business, financial and operational results, and future economic performance and other similar expressions concerning matters that are not historical facts.

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