Union Pacific, Lionel Settle Model Train Dispute

Omaha, Neb., September 15, 2006 – Union Pacific announced today that it has entered into an agreement allowing Lionel Electric Trains, the 106 year-old maker of model trains, to continue the use of Union Pacific’s logos and trademarks on its products.

"We’re very happy to have worked out an agreement with Lionel. They have made high-quality model trains for almost as long as we’ve been running the real ones, and our new agreement resolves any concerns we had with their doing so in the future," Bob Turner, Union Pacific’s senior vice president, Corporate Relations said.

Jerry Calabrese, Lionel CEO, added, "Union Pacific is not only one of the most important companies involved in modern transportation, but one of the true icons of American history. Lionel is very pleased to have reached this agreement, which resolves any differences we may have had as to how both of us protect our respective brands and future needs."

The agreement is subject to Court approval.

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 James Barnes (402) 544-3560.

About Lionel

Lionel LLC is one of the world's leading marketers of model trains and accessories. Established in 1900, the Lionel name is the most widely recognized brand in the toy train industry and one of the most recognized brands in America. Lionel has been at the center of every major innovation in toy train manufacturing and marketing since its inception.

For more information, contact Anna Lennox (586) 949 4100.



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