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Union Pacific's Reaction to Proposed Canadian National/Burlington Merger

21 December 1999

Union Pacific's Reaction to Proposed Canadian National/Burlington Northern Santa Fe Merger Announcement

    OMAHA, Neb., Dec. 20 -- The following is a statement by Union
Pacific Corporation on the proposed agreement by Canadian National
Railway Company and Burlington Northern Santa Fe Corporation to combine their
businesses.

    "We are obviously still studying the implications of the CN/BNSF
announcement.  An immediate area of concern is how this will be viewed by rail
shippers who have already expressed strong reservations about further rail
mergers.  We will be meeting with our customers to solicit their views and
decide what Union Pacific can do to protect their interests, particularly in
those areas where competition would be adversely affected by the proposed
connection.  Once we have received this input from our customers and completed
our own review of the transaction, we will finalize our position.  In the
meantime, we will continue to focus upon improving our service to our
customers and building upon the Union Pacific franchise that remains the
strongest in the industry."