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(BNSF issued the following news release on July 27.)

FORT WORTH, Texas — Burlington Northern Santa Fe Corporation today reported record second-quarter 2004 earnings of $0.67 per share, a 24 percent increase over second-quarter 2003 earnings of $0.54 per share.

“Record all-time volumes coupled with a 2-percent average price increase contributed to our third consecutive quarter of double-digit earnings growth,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “We are pleased with the record second-quarter earnings and freight revenues. As we move toward fall peak season, our equipment availability and crew capacity should enable us to maintain network fluidity and handle forecasted volume growth.”

Second-quarter 2004 freight revenues increased $374 million, or 17 percent, to $2.64 billion compared with 2003 second-quarter revenues of $2.26 billion. Of the 17 percent increase, 2 percent is being driven by fuel surcharges. Consumer Products revenues reached $1 billion for the first time as a result of a 12-percent increase in volumes in the international intermodal sector and a 17-percent volume increase in the truckload sector. Agricultural Products revenues were up $107 million, or 34 percent, due to increased corn and wheat exports. Industrial Products revenues increased $89 million, or 17 percent, to an all-time quarterly record of $620 million reflecting strong demand in the construction products, building products, petroleum products, and chemical and plastics sectors. Coal revenues rose $49 million, or 10 percent, to $553 million driven by record second-quarter volumes both from new and existing customers.

Operating expenses of $2.18 billion were $295 million, or 16 percent, higher than the same period in 2003. The increase in operating expenses was partially driven by a 13-percent increase in gross ton-miles and higher fuel prices. Additionally, operating expenses included approximately $30 million of environmental expenses due to developments at two former fueling facility sites.

Second-quarter operating income increased $96 million, or 23 percent, year-over-year to $508 million. BNSF’s operating ratio decreased to 80.7% compared with 81.8% for the same prior year period.

Dividend Increase

As announced July 22, 2004, the Board of Directors of the Company voted to increase its next quarterly dividend by 13 percent, or 2 cents per share, to 17 cents per share on outstanding common stock. This dividend will be payable on October 1, 2004 to shareholders of record on September 10, 2004. This equates to 68 cents per share on an annualized basis. This dividend increase is in addition to the 25 percent increase approved by the Board in July 2003.

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