Union Pacific Announces Over $90 Million Investment in a New State-of-the-Art Intermodal Terminal in Bexar County

Terminal to reduce truck traffic on San Antonio city streets by over 80,000 trucks a year

San Antonio, Texas, July 20, 2006 – Union Pacific today announced plans to invest over $90 million in Southwest Bexar County to develop a new state-of-the-art intermodal terminal. The 300-acre rail port will serve as an economic development and job growth catalyst for the area. The new terminal will ship and receive containers and trailers with household goods and other items supporting retailers and distribution centers, as well as auto parts for the new Toyota plant in San Antonio.

"Union Pacific is pleased to make a significant investment in Bexar County as we expect intermodal volumes to experience significant growth in the area," said John Kaiser, Vice President and General Manager of Union Pacific’s Intermodal Business.

The railroad’s intermodal volume has been experiencing substantial growth in recent years, which is a reflection of the many consumer goods, electronics, toys and clothing that are being shipped from Asia via intermodal services.

"This is a major investment in Bexar County," said Bexar County Judge Nelson Wolff. "The terminal will further solidify the County's position as an international hub for trade and commerce."

The new terminal will support future growth by processing over 100,000 trailers and containers per year. Intermodal trains are an environmentally friendly option of transporting consumer goods compared to long haul trucks. Trains are three times more fuel efficient and produce one-third less emissions than trucks without the wear and tear on taxpayer financed roads and highways.

"I am pleased Union Pacific selected the southwest side of our world-class San Antonio community for its new intermodal terminal," said Commissioner Sergio "Chico" Rodriguez of Bexar County Precinct 1. "The environmental benefit through reduction of rigs on our highways and potential job growth moves our community forward."

The new facility is expected to result in improved freight movement in the San Antonio area. Benefits include reduction of more than 80,000 trucks per year as well as reducing the number of trucks that currently travel on I-10 between San Antonio and Houston. At the same time, train traffic will be more fluid as additional rail capacity is developed.

"Ever mindful of the safety aspects of the project, Union Pacific’s investment is an indication of the continued positive direction of San Antonio’s economy," said City Councilman Richard Perez of San Antonio’s District 4.

A combination of advanced computer systems and technology will coordinate all movement of railcars, trucks, trailers and containers at the facility. Because of this technology, a truck entering or leaving the facility will be stopped at the gate for only 30 to 60 seconds, compared to the national average of four minutes.

Union Pacific expects construction of the new facility to begin in 2007 with completion scheduled in 2008 on property acquired between Old Pearsall Road, I-35, the 410 and 1604 loops.

Jobs at Union Pacific

Currently, Union Pacific has job openings at many locations throughout its 23-state operating system. Opportunities are available in management, train service, and other skilled disciplines such as diesel mechanics and electricians. 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 more information, contact Joe Arbona at 281-350-7771 or 832-257-4363 (mobile).

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.