Union Pacific Rail System Investments Greatly Enhance Intermodal Service, Safety and Efficiency

Provides Customers with Industry’s Best Route Structure, Largest Intermodal Footprint

Omaha, Neb., July 08, 2009 – Improved service, expansive geographic reach and a business model that provides operating and asset management flexibility are helping enhance Union Pacific Railroad's intermodal business.

"Our intermodal network covers all major transportation corridors," said John Kaiser, vice president and general manager of Union Pacific's intermodal business. "Significant capital investments to our rail system have greatly improved service, safety and efficiency, and have positioned Union Pacific for continued improvements in service and long-term growth."

Investments in track, terminals and other infrastructure have improved fluidity, increased Union Pacific's intermodal capacity and resulted in consistent on-time performance that is now at an all-time high.

"We also have the strongest rail franchise to and from Mexico, with unmatched seamless transit performance and market coverage," Kaiser said.

Union Pacific provides customers with the industry's best route structure and largest intermodal footprint with more markets served than any other railroad. For example, the railroad's route between California and the southeastern U.S., interchanged with Norfolk Southern, is approximately 300 miles shorter and a full day faster than its competitor's route.

Network routing upgrades are improving service and reducing transit times by shortening mileage and avoiding congestion. Examples include:

• New route configurations that have resulted in reducing more than 1,000 miles and 30 hours in transit from Northern California to Dallas.
• A new intermodal service along the I-5 corridor from Tacoma, Wash., to the Los Angeles basin making Union Pacific the only intermodal provider in that lane.
• New and faster intermodal service from San Antonio and Laredo, Texas, to California and the Midwest, with the addition of a new Southeast service later this summer.
• A new intermodal ramp in San Antonio that has allowed transit times to improve between northern Mexico and Los Angeles by two days.

"The geographic reach of our network maximizes market access and provides a compelling added value for our customers as we continue to earn their business," Kaiser said. "We are resourced to manage increased freight levels and are fully positioned to deliver for our customers whenever we see an economic rebound."

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.

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.