Transportation Secretary Lauds Union Pacific Fuel Masters

Novel Energy Conservation Program Rewards Locomotive Engineers for Saving Fuel

OMAHA, NE - Feb. 22, 2006: On Wednesday, following a real-life lesson in locomotive fuel conservation, U.S. Department of Transportation Secretary Norman Y. Mineta commended Union Pacific locomotive engineers during a press conference in the Durham Western Heritage Museum for their innovative energy conservation initiative called the Fuel Masters program. Piloted in April 2004, the program rewards the fuel-saving efforts of Union Pacific locomotive engineers with $100 fuel cards that they can use to reduce their own fuel costs.

"What is most impressive about the UP Fuel Masters program is that the company and its employees have found a way to cut fuel consumption and save money," said Mineta. "It is in their best interest to do this as much as it is in our national interest to be innovative in our energy conservation."

The Fuel Masters program compares locomotive engineers' fuel consumption performance against fellow engineers in the same territory. A two-month snapshot of each engineer's fuel consumption performance is used to calculate individual average consumption rates. Each month, engineers in the top 15 to 20 percent of each territory where Union Pacific operates are awarded fuel cards.

In 2005, the Fuel Masters program saved more than 16 million gallons of diesel, and $30 million for Union Pacific Railroad.

"Our employees take great pride in their work and this is demonstrated by the initiative that Union Pacific locomotive engineers have taken in leading the Fuel Masters program and making the program an integral part of our daily operations," said Jim Young, president and CEO, Union Pacific. "In the 21st century, our employees are demonstrating the trademark hands-on leadership that has positioned Union Pacific in its 145-year history as the railroad that is building America."

For more information about Union Pacific's environmental management programs, visit www.up.com and click on "Environmental Management."

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.