Kansas City Southern Executive Committee of the Board of Directors Declares Cash Dividends on the 4.25% Redeemable Cumulative Convertible Perpetual Preferred Stock and 4% Non-Cumulative Preferred Stock

Business Wire, July 19, 2005

KANSAS CITY, Mo. -- Kansas City Southern (KCS)(NYSE:KSU) Executive Committee of the Board of Directors declared a cash dividend of $5.3125 per share on its outstanding 4.25% Redeemable Cumulative Convertible Perpetual Preferred stock. This dividend will be payable on August 15, 2005, to stockholders of record at the close of business on August 1, 2005.

The Executive Committee also declared a cash dividend of $.25 per share on the outstanding 4% Non-Cumulative Preferred stock. This dividend will be payable October 4, 2005, to stockholders of record at the close of business on September 12, 2005.

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holdings include The Kansas City Southern Railway Company, founded in 1887, and The Texas Mexican Railway Company, founded in 1885, serving the central and south central U.S. Its international holdings include a controlling interest in TFM, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico and Veracruz, and a 50% interest in The Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. Visit www.kcsi.com for more information.