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(Union Pacific issued the following news release on January 12.)

OMAHA, Neb. — The series of storms that hit California this week is having significant impact on Union Pacific’s operations around the Los Angeles Basin, through the Sierra Nevada mountains, and the rest of California. Washed out tracks, mud and rockslides over the tracks, and flooding have closed or restricted five of our main routes and damaged signals in the area.

As a result, the Association of American Railroads (AAR) has issued Union Pacific’s embargo notices limiting intermodal, automotive and manifest shipments to and from points in the Los Angeles Basin, extending north to Santa Barbara and east to Moapa, Nev., which is north of Las Vegas. The embargoes, effective Tuesday, January 11, 2005, impact most traffic moving between these points.

Union Pacific crews are working hard to restore critical rail service, but recovery is expected to be slow and will depend on weather as the crews are working in very difficult conditions. Routes may be repaired and operations increased by later this week. Once the routes are open, it may take a few days to work off the backlog of trains before the embargo is lifted.

For updates on the status of Union Pacific’s operations, specific information on the embargoes and a list of impacted locations and exceptions, please visit our Web site at: www.uprr.com/customers/embargo/index.shtml.