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(Burlington Northern Santa Fe Corp. issued the following news release on April 22.)

FORT WORTH, Texas — Burlington Northern Santa Fe Corporation (BNSF) today reported first quarter 2003 earnings of $0.40, before the cumulative effect for a change in accounting principle. Including the cumulative effect adjustment of $0.10 per share after-tax, first quarter 2003 earnings was $0.50 per share.

“BNSF achieved year-over-year quarterly revenue growth for the first time since the second quarter of 2001. Excluding the impact of higher fuel prices, our operating expenses were essentially flat and the operating ratio would have been approximately 1 point lower than the first quarter of the prior year,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. Rose said, “We believe revenue growth will continue this year along with earnings growth even though the outlook for certain segments of the U.S. economy continues to be cloudy.”

Freight revenues for the first quarter increased 3 percent to $2.20 billion compared with 2002 first quarter revenues of $2.14 billion, including a $16 million increase in revenue from fuel surcharges. Consumer Products revenues increased $70 million, or 9 percent, to $848 million, as a result of record revenue levels in the international, truckload and perishable sectors. Coal revenues decreased $23 million, or 5 percent, to $485 million, as a result of lower volumes from the draw-down of utility stockpiles, utility maintenance outages and a March blizzard in the Powder River Basin. Industrial Products revenues grew $20 million or 4 percent to $511 million from increased steel, aluminum and clay shipments in the construction products sector and increased military-related and waste products shipments in the building products sector. Agricultural Products revenues declined $3 million, or one percent, to $358 million, largely because of reduced Pacific Northwest wheat-export demand.

Operating expenses of $1.89 billion were $103 million higher than the same 2002 period. Fuel expense was up $90 million, or 49 percent, to $274 million compared with the same 2002 period primarily as a result of an average increase of $0.29 per gallon in the cost of diesel fuel to $0.94 per gallon, which includes a hedge benefit of $0.08 per gallon. Purchased services expense increased $24 million to $299 million due to higher service contract expense for equipment maintenance and outsourcing of computing infrastructure.

Operating income was $346 million for the 2003 first quarter compared with $380 million for the same 2002 period. BNSF’s operating ratio was 84.3 percent for the 2003 first quarter compared with 82.2 percent in 2002.

Change in Accounting Principle

BSNF adopted Statement of Financial Accounting Standards (SFAS) No. 143, Accounting for Asset Retirement Obligations, on January 1, 2003. This statement disallows the accrual of asset retirement costs that are not legal obligations. The net cumulative effect of this accounting change on years prior to 2003 was an increase to Net income of $39 million, net of tax, or $0.10 per share, which is reflected in the cumulative effect adjustment recorded in the first quarter of 2003.

Common Stock Repurchases

During the 2003 first quarter, BNSF repurchased approximately 3 million shares of its common stock at an average price of $25.58 per share. This brings total repurchases under BNSF’s 150-million share-repurchase program to approximately 119 million shares as of March 31, 2003, at an average price of $25.96 per share since the program was announced in July 1997.

Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSF operates one of the largest railroad networks in North America, with 32,500 route miles covering 28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com . The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other American railroad, transports the mineral components of many of the products we depend on daily, and hauls enough coal to generate about 10 percent of the electricity produced in the United States.