Link to press release issued today: [www.uprr.com]

Union Pacific Second Quarter Earnings Report

OMAHA, Neb. — Union Pacific Corporation today reported 2012 second quarter net income of $1 billion, or $2.10 per diluted share, compared to $785 million, or $1.59 per diluted share, in the second quarter 2011.

All-time quarterly records:

• Diluted earnings per share of $2.10 improved 32 percent.
• Operating revenue grew to $5.2 billion, up 7 percent.
• Operating income totaled $1.7 billion, up 24 percent.
• Operating ratio of 67.0 percent, improved 4.3 points.

• Customer satisfaction index reached 93, up 1 point and tied the best-ever quarterly record.

"We're clearly delivering on the strength of our diverse franchise," said Jack Koraleski, Union Pacific chief executive officer. "Volume growth across many of our market sectors offset the 17 percent decline in coal volumes. When combined with solid pricing, efficient network operations and continued productivity gains, the net result was our best-ever quarter by nearly every financial measure."

Second Quarter Summary

Second quarter business volumes, as measured by total revenue carloads, were up slightly compared to 2011. Volume growth in four of Union Pacific's six business groups - automotive, chemicals, industrial products and intermodal - was offset by declines in shipments of coal and agricultural products. Quarterly operating revenue increased 7 percent in the second quarter 2012 to $5.2 billion versus $4.9 billion in the second quarter 2011. In addition:

• Five of Union Pacific's six business groups reported freight revenue growth in the second quarter, driven by core pricing gains and improved fuel surcharge recovery. Volume growth also contributed to revenue growth for four of the business groups.

• Union Pacific's operating ratio of 67.0 percent was an all-time quarterly best, 4.3 points better than the second quarter 2011 and 1.2 points better than the previous record set in the third quarter 2010. Pricing gains, improved fuel surcharge recovery and efficient operations drove this record performance. Lower fuel prices also contributed to 1.1 points of the improvement versus last year.

• Average quarterly diesel fuel prices decreased 2 percent to $3.21 per gallon in the second quarter 2012 from $3.29 per gallon in the second quarter 2011.

• The Customer Satisfaction Index of 93 tied the all-time quarterly record and was 1 point better than the second quarter 2011.

• Quarterly train speed, as reported to the Association of American Railroads, was 26.6 mph, increasing 2 percent compared to the second quarter 2011.

• The Company repurchased 3.8 million shares in the second quarter 2012 at an average share price of $110.02 and an aggregate cost of $415 million.

Summary of Second Quarter Freight Revenues

• Automotive up 25 percent
• Industrial Products up 14 percent
• Chemicals up 13 percent
• Intermodal up 10 percent
• Agricultural up 1 percent
• Coal down 9 percent

2012 Outlook

"Looking ahead to the second half of the year, the global economic outlook has become more uncertain and coal volumes remain a challenge," Koraleski said."However, we'll continue to take advantage of the opportunities provided by our diverse franchise to drive record financial results and increase shareholder returns once again this year."

About Union Pacific

It was 150 years ago that Abraham Lincoln signed the Pacific Railway Act of July 1, 1862, creating the original Union Pacific. One of America's iconic companies, today, Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP), linking 23 states in the western two-thirds of the country by rail and providing freight solutions and logistics expertise to the global supply chain. From 2000 through 2011, Union Pacific spent more than $31 billion on its network and operations, making needed investments in America's infrastructure and enhancing its ability to provide safe, reliable, fuel-efficient and environmentally responsible freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. The railroad serves many of the fastest-growing U.S. population centers and emphasizes excellent customer service. Union Pacific operates competitive routes from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways.