TMC Engine Summit March 16, 2004

1. TMC Engine SummitMarch 16, 2004 Steve Duley Vice President Purchasing

2. DEDICATED EXPEDITED - TEAMS INTERMODAL > > > Diversified Truckload Carrier and Logistics Provider ONE-WAY VAN BROKERAGE Serving North America BULK SPECIALIZED Proprietary & Confidential

3. Spot Brokerage • Glass Brokerage • Tariff Based • Brokerage OptiModal • TruckRail • Intermodal One-Way Van • Dedicated • Expedited • Specialized • Bulk • Truckload Operating Services • Application Services • SFI • INS • Payment Services • New Ventures • Logistics Financial Services Schneider National • $2.9 billion in revenue in 2003 • Operate 12,000 tractors, 15,200 drivers, and 45,000 trailers with 20,800 associates operating in 28 countries • Purchase $1.5 billion in 3rd party transportation from 1,300 carriers • Pay 20 million invoices totaling $7 billion to 8,500 carriers • Commitment to superior information and communications technology Proprietary & Confidential

4. Engine Review Post October 2002 – January 2004

5. Engine Evaluation Table – Last Update 1/19/04 Proprietary & Confidential

6. Post October 2002 Engine – Evaluation Results • Purchase price over $5,000 per engine. • MPG loss 3-5%. (10 years of progress – lost!) • Oil drain interval same as post 1998 engines. • One engine teardown @ 250,000 miles was normal. • Driver feedback – “acceptable – good performance.” • Reliability first 250,000 miles (30% life) is ok. • Some early failures of every significant EGR component i.e. VGT turbo, EGR valve, VPOD, sensors, pipes, EGR coolers. • Concerned about operating costs/reliability as vehicle ages: • Warranty ends. • More parts to maintain. • High cost parts. • More complex troubleshooting. • Significant improvements have occurred since 10/2002. Proprietary & Confidential

7. Engine Component Price Comparison Proprietary & Confidential

8. Post 2002 engine will increase operating costs by 2-3 cents/mile. Government Regulations Increasing Engine Costs Total Cost of ’02 Engines Proprietary & Confidential

9. Engine Review 2007-2010 Engine

10. 1 2 3 4 5 6 EGR with aParticulate Filter Approach Variable Geometry Turbocharger Air to Air Cooler Intercooler NOx Reduction with Increased EGR Rates C Catalyzed Particulate Filter T EGR Control Valve EGR Cooler Particulate Filter to be Integrated into the Vehicle Exhaust System Proprietary & Confidential

11. Diesel Particulate Filter Concerns Catalyzed Particulate Filter • Initial and replacement price (precious metals?). • Active regeneration process. • Maintenance interval. • Maintenance process. • No heavy truck experience. • Requires low sulfated ash oil (possible unique oil). • Reduced life with LSD fuel. • Overall operating cost. Particulate Filter to be Integrated into the Vehicle Exhaust System Proprietary & Confidential

12. Government Regulations Increasing Engine Costs Total Cost of ’02 and ’07 Engines * Revised 2/2004 Proprietary & Confidential

13. SNI View of 2007 • SCR should be approved. • Must receive adequate representative field test engines by mid-year 2005. • Cost estimates are much higher than EPA’s estimate. • EPA should reforecast costs. • A government funded financial incentive is needed. • Without a successful field test AND incentive. • Significant prebuy followed by a long interval no/slow buy. • Cost/recovery challenge. • Cumulative cost impact – i.e. health care, litigation, insurance, hour of service changes, driver wages. • Raise prices – lose freight. • Transition – compete with old technology. • Support Clean Air • “Win-Win” solution needed. Proprietary & Confidential

14. How Long Can Fleets Slow/No Buy? Proprietary & Confidential