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(KCS issued the following news release on January 25.)

KANSAS CITY, Mo. — Kansas City Southern’s Executive Committee of the Board of Directors, on January 20, 2005, declared a cash dividend of $5.3125 per share on the outstanding 4.25% Redeemable Cumulative Convertible Perpetual Preferred stock. The dividend is payable on February 15, 2005, to shareholders of record at the close of business on February 1, 2005.

KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary domestic holdings include The Kansas City Southern Railway Company, founded in 1887, and The Texas Mexican Railway Company, founded in 1885. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the United States. KCS’ rail holdings and investments, including TFM, S.A. de C.V., are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States, Canada and Mexico. Visit www.kcsi.com for more information.