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BNSF Announces $2.45 Billion Capital Commitment Program

Posted on: Tuesday, 29 January 2008, 12:00 CST

BNSF Railway Company (BNSF) today announced its planned $2.45 billion capital commitment program for 2008. BNSF anticipates leasing 200 locomotives with a cost of about $400 million and investing over $200 million in track and facilities to expand capacity to continue to meet demand for consistent freight rail service. The 2008 capacity expansion program is expected to be approximately $350 million lower than 2007.

For 2007, BNSF's Return on Invested Capital (ROIC) was 10.5 percent, a modest decrease from 2006. "Although we saw a decline in our ROIC for 2007, we continue to believe in the long-term growth potential of our franchise and in our ability to improve our returns," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.

Rose added, that "For 2008, BNSF currently expects to spend more than $1.8 billion to keep our infrastructure strong by refreshing track, signal systems, structures, freight cars, and upgrading technologies."

Some of the major 2008 capacity expansion programs are:

 --  Southern Transcon -- Continue to install double- or triple-track;     including a second main line across Abo Canyon in New Mexico; --  Coal Route -- Continue to install double-track in Nebraska and     Wyoming; --  Intermodal Facilities -- Expansions at Kansas City, Los Angeles, and     Memphis; and --  Other Infrastructure -- Sidings between Fort Worth and Houston, Texas      

A subsidiary of Burlington Northern Santa Fe Corporation (NYSE: BNI), BNSF Railway Company operates one of the largest railroad networks in North America, with about 32,000-route-miles in 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other North American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

BNSF's ROIC, as discussed above, is a non-GAAP measure and should be considered in addition to, but not as a substitute or preferable to, other information prepared in accordance with GAAP. Below is the calculation of ROIC for the year ended December 31, 2007 (dollars in millions).

 Year ended December 31, 2007 Average capitalization(a)                    $ 22,807 Operating income                             $  3,486 Other expense                                     (18) Financing charges(b)                              410 Taxes(c)                                       (1,481)                                              --------   After-tax income excluding    financing charges                         $  2,397                                              -------- Return on invested capital(d)                    10.5%                                              -------- (a) Average capitalization is calculated as the average of the sum of     stockholders' equity, net debt (long-term debt and commercial paper     plus long-term debt due within one year less cash and cash     equivalents), the net present value of future long-term operating     lease commitments and the receivables sold under the accounts     receivable sales program for the most recent preceding 13 month ends. (b) Financing charges represent the estimated interest expense included in     operating lease payments and Accounts Receivable sales fees. (c) Taxes are calculated as the sum of monthly operating income, other     expense and financing charges, multiplied by an effective tax rate. (d) Return on invested capital is calculated as the total after-tax income     excluding financing charges divided by average capitalization. 

 Investor Contact: Marsha Morgan (817) 352-6452  Media Contact: Mary Jo Keating (817) 867-6407  

SOURCE: Burlington Northern Santa Fe

Source: MARKET WIRE

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