Union Pacific Railroad – ‘Building America’ for Economic Growth and Development in Nevada

1. Union Pacific Railroad – ‘Building America’ for Economic Growth and Development in Nevada Dan Harbeke, Director Public Affairs, March 23 2011

2. The Strength of a Unique Franchise Operate in 23 States 32,000 Miles of Track 43,500 Employees Over 7,000 Communities Vancouver Seattle Eastport Portland Duluth Twin Cities Omaha Salt Lake City Oakland Denver Kansas City St. Louis AgriculturalProducts19% Los Angeles Memphis Intermodal20% Dallas Calexico Autos Nogales 8% El Paso New Orleans Industrial Houston Eagle Pass 16% Chemicals Laredo 15% Brownsville Energy 22% Business Mix

3. Union Pacific Railroad in Nevada Fast Facts 1,193 Miles of Track 558 Employees $39.1 M Payroll $26.4 M In-State Purchases $73.7 M Capital Spending $165,000+ Community Giving 28 Principal’s Partnership Schools 18 Non-Profit Organizations Historical Significance Est. 1868 via Central Pacific Acquisition of Western Pacific and Southern Pacific Railroads

4. Union Pacific Railroad in Nevada TOP FIVE COMMODITIES SHIPPED IN 2009 (BY VOLUME) Total Cars Originated in Nevada(000) TOP FIVE COMMODITIES RECEIVED IN 2009 (BY VOLUME) Total Cars Terminated in Nevada(000)

5. Capital Investment Supports Volume Outlook2011 Estimate $3.2 Billion Capital Plan • Safe and resilient infrastructure • Increased capacity spending • Sunset Corridor • Blair double track • 100 new locomotives • Increased PTC spending (In Millions) Infrastructure Replacement $1,665 PTC $250 Capacity/ Commercial Facilities $580 $165 $415 Technology/ Other $125 Locomotives/ Equipment $580 Replacement Growth and Productivity PTC

6. UP Capital Spending TrendsIn Billions ~$31 Billion since 2000* *Includes Cash Capital, Leases and Other Non-Cash Capital

7. Donner Pass Projectand Nevada Investment N N Route Comparison Weso To Salt Lake Feather River Route Tunnel Notching Donner Pass Route 15 Tunnels Reno Roseville NEVADA Sacramento CALIFORNIA Stockton Oakland

8. Velocity Measures AAR Train Speed Freight Car Terminal Dwell Good Good January 2003 January2011 January 2003 February2011 • Measured from train departure at its originating terminal to train arrival at its destination terminal. All time is counted, including time at intermediate locations. All train categories are measured. Average hours cars sit in terminals. They are measured from train arrival to train departure. All cars are measured.

9. Create Customer Value! Customer Satisfaction Index GOOD

10. Economic Uncertainty7-Day Carloadings (000) 2007 2008 2011 2010 2009

11. 2011 UP Volume 2011 vs. 2010 MTD Carloadings 2007 2008 2011 2010 2009

12. Performance Sustainability Service Excellence Volume Variability Upside Leverage • Train Capacity and Locomotive Practices • Surge Capabilities • Process Discipline • Capital Investments • Infrastructure Condition Service Performance & Volume Furloughs/Stored*: • 1,502 TE&Y • 1,128 Locomotives • 35,000 Freight Cars *As of 1/3/2011

13. Armour Yellow Outside – Green Inside One train takes up to 300 trucks off congested highway Rail is almost four times more fuel efficient than trucks UP can haul one ton 830 miles on one gallon of diesel fuel Rail transportation is three times cleaner than trucks on a ton-mile basis UP Genset Yard Locomotive

14. Thank You & Questions