NEWSLETTER - TEALINC TOUCHBASE - 2006 December 2006 - Coal Consumption to Remain Flat in 2006; Increase by 1.9 Percent in 2007 UP Announces Price Changes to Ensure Acceptable Generation of Return on Investments AAR Clarification: Billing For a Car With Damage Covered By An Endorsed JIC Class I's Report Carload and Intermodal Freight Up for October; Down Slightly During Thanksgiving Week November 2006 - Global Cement Consumption Expected to Continue CSXT Fuel Surcharge to Drop from 20.4 Percent to 16.4 Percent November 1 U.S. Class I's Continue to Hire More Workers to Keep Up With Demand Federal Reserve Holds Interest Rates at 5.25 percent; Prime Expected to Sit at 8.25 Percent Through March 2007 October 2006 - USDA Projects Record U.S. Corn Crop- Some Still Nervous About Harvest Size Overall Rail Traffic Volume Has Significantly Outpaced 2005 Year-To-Date 65 Year Service Life Option Approved For Units Built On Or After January 1, 1964 Federal Reserve Holds Interest Rates at 5.25 percent; Economy Slowing September 2006 - Lumber Supplies Said To Be Plentiful; Market Hopes For Change In Demand Service on Nation's Railroads Showing Marked Improvements STB Seeks Public Comments on Proposed Fuel Surcharge Changes After Seventeen Consecutive Increases, The Fed's Halt Interest Rate Hikes August 2006 - Spring Wheat Production Likely to Fall Below USDA Projection UP to Provide Service at Industrial Parks Only With Valid Track Agreement Proposed Tax Credit to Save Businesses Investing in Track and Infrastructure Projects 25 Percent Economic Growth Significantly Slower in Second Quarter 2006 July 2006 - U.S. Steel Prices Above World Average CSXI Fuel Surcharge Rate to Drop 0.5 Percent Effective July 1 GAO Reports “Rail Shipping Rates Have Not Increased Over the Past 20 Years” Sharp Gains Reported in Intermodal and Carload Freight June 2006 - Survey Suggests Another Record Year for Coal Production New Union Pacific Policy for Steel Gondola Shippers and Receivers CN Implementing an Asset Use (Demurrage) Policy Effective July 1 Fed Funds Rate 5.0 Percent; Prime Rate Around 8.0 Percent May 2006 - 2006 Barley Acres Down; Interesting Perspectives for Year Ahead New Union Pacific Bill Of Lading Requirements AAR Implementation of Interchange Rule to Ensure Accurate Cost Recovery Fed Funds Rate Expected to Increase to 5.0 percent by May 10 April 2006 - Production of Crushed Stone Expected to Increase More Than 20 Percent by 2020 Congress to Address Perceived Lack of Rail Competition STB to Hold Hearing on Fuel Surcharges Federal funds Rate Expected at 5.25 Percent by June 2006 March 2006 - U.S. Steel Sector Continues to Enjoy Healthy Domestic Demand STB Gives Final Approval for DM&E Railroad and The Powder River Basin Expansion Project Union Pacific Car Order Policy Effective March 5, 2006 Prime Rate Expected at 7.75 Percent by March End; 8.00 Percent by May 2006 February 2006 - 2006 Expected to be Another Challenging Year for Farmers Fed's Raise Funds Rate for 14th Time CN, BNSF Announce Agreement to Improve Rail Fluidity U.S. Freight Railroads Handled More Traffic in 2005 Than Ever Before January 2006 - 2006 May Bring Class I Service Challenges New Intermodal Traffic Record Set in 2005 Compared to Same Time Last Year, Lumber Production was up 3.4% in 2005 Federal Funds Rate 4.25% and Prime Rate 7.25%; Expect Quarter-Point Increases by February

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