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

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 The Union Pacific is a unique franchise with a diversified commodity mix that we manage as six business units, all with good growth prospects. (BUILD) I’ve often said, if you were going to build a railroad, you’d build the Union Pacific, with our tracks covering 8 of the 12 fastest growing states in the country. Add to that our extensive coverage of West Coast and Gulf ports… and our unparalleled access to Mexico border crossings and our gateways to Canada, UP is positioned to be a vital transportation link - not only in the U.S., but for international trade as well. Omaha Oakland Salt Lake City Denver Kansas City St. Louis Agricultural Products 19% Los Angeles Memphis Intermodal 20% Dallas Calexico Autos Nogales El Paso 8% New Orleans Industrial Houston Eagle Pass 16% Chemicals Laredo Brownsville 15% Energy 22% Business Mix 2

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 3

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) 4

Capital Investment Supports Volume Outlook 2011 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 We make capital investments to enhance safety, improve customer service, increase productivity and add capacity to handle our customers’ growth. Keeping what amounts to a privately owned steel highway in top condition is an expensive proposition. As a matter of fact, roughly 80 percent of our capital spending at Union Pacific goes to replacing assets that are worn out. After oil and gas companies, railroads top the charts as the most capital-intensive businesses today. For example, our engineering replacement plan is almost $1.7 billion and includes replacing or installing more than 4.4 million ties and about 1,000 miles of rail. These improvements boost both reliability and network fluidity. As proof of that, in 2010, we reduced slow order miles by 58 percent since 2006, driving record velocity. PTC $250 Capacity/ Commercial Facilities $580 $415 $165 Technology/ Other $125 Locomotives/ Equipment $580 PTC Replacement Growth and Productivity

UP Capital Spending Trends In Billions ~$31 Billion since 2000* *Includes Cash Capital, Leases and Other Non-Cash Capital

Donner Pass Project and Nevada Investment (9 of 13) Donner Pass Project and Nevada Investment Need double stack economies from Tom Haley Route Comparison N Feather River Donner Pass Diff Btr/(Wrse) Miles (Weso to Roseville) 387 312 75 Ruling Grade 1.0% 2.65% (1.65) Weso To Salt Lake Feather River Route Tunnel Notching NEVADA INVESTMENT UP has spent $150 Million in Nevada in last two years Donner Pass Tunnel Clearance – Phase I Sparks Yard Improvements Surveilliance System Track Improvements for Distributive Power Nevada Siding Extensions Federal TIGER application We have two routes from Salt Lake City to Northern California. The former SP route over the Sierra Nevada mountains offers us a 75-mile route advantage versus the Feather River Route. Very strategic UP advantage – 250 miles shorter than BNSF Chicago to Northern California. However, not cleared for double stacks so it forces us to use the longer Feather River route Operating and Engineering came up with an innovative plan to open a route by raising the clearance of 15 of the tunnels by “notching” the ceilings We can essentially double the capacity of an intermodal train and offer premium service in this competitive Northern California corridor. In fact, UPS is very intrigued and has verbally committed to begin moving Northern California business to UP on January 1, 2010, because of our_ success and our ability to offer premier double stack service. Donner Pass Route 15 Tunnels Reno Roseville Sacramento NEVADA CALIFORNIA Stockton Oakland WESO – ROSEVILLE Feather River Donner Pass Donner vs Feather Fav/(Unfav) % Var Miles (to Roseville) 387 312 75 19% Feet of Rise /Fall 8,576 11,326 (2,750) (32)% Ruling Grade 1.00% 2.65% (1.65%) (165)% Degrees of Curvature 21,121 20,462 659 3 % Avg Siding Length 6,230 9,055 2,825 45% Percent 2MT 0.0% 55% n/a TPS Run-Time 10-12 Hours 8-10 Hours 2-4 Hours 15-20% Fuel (EB-WB): IMDL 6,200-3,100 5,400-3,200 ~1,800 RT MFST 4,900-3,200 4,600-3,500 300-(300) Even Grain 3,800-3,400 3,100-4,100 700-(700)

Freight Car Terminal Dwell Velocity Measures AAR Train Speed Freight Car Terminal Dwell Good Good January 2003 January 2011 January 2003 February 2011 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.

Customer Satisfaction Index Create Customer Value! Customer Satisfaction Index Our customer satisfaction results improved in 2008 to a best-ever 83, significantly better from where we were just a few years ago. It’s the proof that creating customer value is a win-win strategy for us and customers, and a better solution to facing the current economic challenge. In no way are we content with our current level of customer satisfaction – it’s merely a strong foundation for further improvement. GOOD 9

Economic Uncertainty 7-Day Carloadings (000) 2007 2008 2011 2010 2009 While 2008 was a great year in terms of service performance and customer satisfaction, the economy continued to impact volume across many of our markets. We anticipated that volumes would start off slow in the first half of the year, but gain strength in the second half. Instead, as the economy weakened further, volumes were considerably below our initial expectations. For 2008, we averaged 180,000 carloads on a 7-day average, compared to 190 in 2007 and about the same level we saw in 2003.

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

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

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 There are additional benefits railroads bring to the communities beyond the goods we haul. Currently, drivers spend four billion hours a year caught on crowded roads, which wasted 2.9 billion gallons of gas. . . Not to mention the emissions impact of idling cars and trucks. The good news for those who fight the rush hour is that a single UP intermodal train can take up to 300 trucks off our highways. Union Pacific can move one ton more than 830 miles per gallon of fuel. To put that in perspective, that means an average car could travel about 400 miles on one gallon of gasoline. And in terms of emissions, the EPA estimates that for every ton-mile, a typical truck emits roughly three times more oxides of nitrogen and particulates than a locomotive does. Union Pacific is aggressively working to become even “cleaner and greener.” Our employees understand that protecting the environment is part of every job, and they are creating world-class energy conservation techniques to move even more freight with less fuel and emissions. UP Genset Yard Locomotive 13

Thank You & Questions