Union Switch & Signal Announces One of the Largest Software Agreements in Railroad History; Union Pacific to Adapt Innovative Traffic Planning Technology

Business Wire, August 22, 2005

PITTSBURGH -- Union Switch & Signal (US&S) announced today that it has entered into an agreement with Union Pacific Railroad (NYSE: UNP) to implement its real time Optimizing Traffic Planner(TM) (OTP) and Next Generation Computer Aided Dispatch System (CAD) throughout the railroad company's more than 33,000-mile North American rail network.

OTP is a software technology-based system for planning and optimizing the movement of rail traffic across a rail network.

"US&S is committed to delivering the latest technologies to the railroad industry, and we are pleased to announce the first OTP contract with the largest railroad in North America," said Ken Burk, president and CEO of Pittsburgh-based US&S. "With the OTP system in place, Union Pacific will be in a position to greatly increase operational efficiency while reducing costs."

The OTP application platform is designed to solve the problem of optimizing the movement of trains across a rail network in a way that satisfies a railroad's complex logistics and operating needs as well as its business objectives. Once the OTP system is installed, its problem-solving engine will generate multiple optimized train movement plans continuously for all trains scheduled to be running during that time, and select the best plan for execution.

With this initial plan in place, the system will then generate new and revised plans based on updated information it receives from the field, reacting to unexpected events such as tracks going out of service or trains running slower than expected. This capability for real-time response enables OTP to maintain the highest level of optimization over time for the railroad.

OTP is the most recent innovation developed by US&S, and represents a quantum leap in planning technology for this industry. The company delivered the first (non-optimizing) automated planner to the industry for commercial application in the late 1980s with its Auto Routing (ART) solution, and continues to lead the industry in railroad dispatching solutions.

About Union Switch & Signal Inc.

Headquartered in Pittsburgh, PA, Union Switch & Signal Inc. (US&S) is a leader in the design, manufacture and service of signaling, automation and control equipment and systems for the railroad and mass transit industries worldwide. US&S is a subsidiary of Ansaldo Signal N.V., a Finmeccanica company. Founded in 1881, the company will mark its 125th year of continuous operation next year. For more information visit www.switch.com.

About Union Pacific

Union Pacific Corporation (NYSE: UNP) 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. For more information visit www.up.com.