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UNION PACIFIC PRESS RELEASE
Union Pacific and Progress Rail Services to Launch Initial Operation of Ultra Clean Diesel Locomotive for Intermediate Line Haul Service

Omaha, Neb., May 21, 2009 - Union Pacific Railroad and Progress Rail Services today announced their plan to launch the initial operation of an ultra clean diesel SD40-2 locomotive equipped for intermediate line haul service. Equipped with state-of-the-art after-treatment, this customer evaluation unit will begin Union Pacific operations this month with an initial revenue-service run between the railroad's San Antonio and Fort Worth service units, respectively.

"We are excited about the prospects of bringing more environmentally friendly locomotives into service while still meeting our operational needs," said Bob Grimaila, Union Pacific senior assistant vice president, Safety and Environment. "We know there are challenges ahead as we evaluate performance under demanding rail operations, but we remain committed to support this project and commend our partners, Caterpillar and Progress Rail Services, for their collaborative efforts in developing this promising technology."

The Progress Rail PR30C-LoNOx Locomotive has been re-powered with a single 3,005 horsepower, low-emission, Caterpillar clean-diesel engine. It meets EPA's Tier 2 standards and is retrofitted with an advanced emission control technology. That technology routes the exhaust through a diesel oxidation catalyst prior to entering the selective catalytic reduction (SCR) chamber, where oxides of nitrogen (NOx) emissions are reduced by more than 90 percent from the original 1970s vintage engine.

"The use of after treatment to reach these levels of emissions is new territory for the rail industry and we are pleased to be the first with SCR for large mobile engine applications," said Billy Ainsworth, CEO, Progress Rail Services. "By leveraging the expertise of Caterpillar, an established leader in clean diesel technology, we are confident we can bring this cutting-edge technology to the railroad industry just as we have been providing it in other applications. Additional prototypes, all powered by Caterpillar model 3516, 3005 horsepower diesel engines, will be retrofitted and tested with this system, making them among the cleanest locomotives in America. The durability and performance of the unit will be closely monitored and evaluated over a six-month period to ensure safe and dependable operations."