Union Pacific Railroad Selects Kiodex Risk Workbench For Fuel Risk Management; Largest U.S. railroad chooses Web-based solution to manage volatile energy prices

    NEW YORK--Jan. 16, 2002--Kiodex, Inc., a provider of Web-based risk management solutions, today announced that Union Pacific Railroad, the largest railroad in the United States and a subsidiary of Union Pacific Corporation , has become a customer of the Kiodex Risk Workbench(SM).
    "We are extremely pleased to have Union Pacific Railroad as a Kiodex Risk Workbench customer," said Raj Mahajan, Kiodex President. "Their confidence in the Risk Workbench's ability to handle the energy risk management of the country's largest railroad is a wonderful validation of Kiodex and its services."
    "Union Pacific Railroad recognizes the complexity of creating efficient hedging strategies in a volatile energy market," said Charles Walters, Fuel Director for Union Pacific. "The ability to evaluate various hedging strategies, test different scenarios, and assist in the strategy selection that results in optimal cost savings for the company are features of the Risk Workbench that Union Pacific found particularly compelling."
    The Kiodex Risk Workbench(SM) is a Web-based risk management system that assists corporations such as Union Pacific Railroad in managing their earnings exposure to energy price risk. Unlike other risk management systems, the Kiodex Risk Workbench(SM) integrates its four core services - pricing tools, market data, risk reports, and position keeping - into a single application. The combination of these services into an easy-to-use interface enables companies to design, choose and implement more effective hedging strategies.

    Web-based Access, Standardized Risk Reporting Key Features for Union Pacific

    "One of the features Union Pacific values highly is the ability to access our data in the Risk Workbench from any computer with a Web browser," added Charles Walters. "Our Front, Middle and Back Offices are located in several different buildings in downtown Omaha. The ability to access the most up-to-date information at the same time in different locations is tremendously efficient for the company." Another key benefit of the Risk Workbench that Union Pacific values is the ability to create clear, consistent and standardized risk reports for evaluation and presentation to senior management.

    Appeal to Top Tier Companies

    With the signing of Union Pacific Railroad, a Fortune 500 company, the Kiodex Risk Workbench(SM) is quickly establishing itself as a solution that energy-intensive Tier-1 corporations trust to handle their energy risk management. Other recent customer announcements from Kiodex have included Eastman Chemical Company and American Airlines , both Fortune 500 companies. Other industries that will benefit from Kiodex' risk management services include the Food and Beverage, Oil and Gas, Manufacturing, Trucking, Tobacco, Mining and Metals, Construction, and Pulp and Paper industries.
    Those interested in scheduling an online demonstration or signing up for a trial subscription of the Kiodex Risk Workbench(SM), should email info@kiodex.com, or sign-up directly at www.kiodex.com.

    About Union Pacific Corporation

    Union Pacific Corporation is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two-thirds of the United States. A strong focus on quality and a strategically advantageous route structure enables the company to serve customers in critical and fast growing markets. It is the leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical-producing areas along the Gulf Coast. With competitive long-haul routes between all West Coast ports and eastern gateways and as the only railroad to serve all six major gateways to Mexico, Union Pacific has the premier rail franchise in North America. The corporation also owns Overnite Transportation, a nationwide less-than-truckload carrier, and Fenix, a group of technology companies.

    About Kiodex

    Kiodex, Inc. is a technology and services company providing risk management solutions for corporations seeking to realize cost savings in their hedging strategies, manage FAS 133 compliance, and stabilize earnings. The company's flagship service, the Kiodex Risk Workbench(SM), combines pricing tools, market data, risk reports, and position keeping in a single Web-based application to give treasury professionals, risk managers, and procurement officers the ability to effectively manage energy price volatility.