News Release

Burlington Northern Santa Fe Reports Second-Quarter 2003 Results

FORT WORTH, Texas, July 22, 2003:

• Second-quarter 2003 earnings was $0.54 per share compared with second-quarter 2002 earnings of $0.51 per share.
• Freight revenues increased 3.7 percent to $2.26 billion compared with the prior-year period, on a 4.6 percent increase in units handled.
• Fuel expense increased $56 million, year-over-year.
• Operating income was $412 million compared with $421 million a year ago.
• Lower second-quarter 2003 income tax expense primarily reflects a favorable tax settlement.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported second-quarter 2003 earnings of $0.54 per share compared with second-quarter 2002 earnings of $0.51 per share.

"Strong international volumes led BNSF to having overall revenue growth for the second consecutive quarter," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer, "however, our bottom line continues to be impacted because of a 27 percent increase in fuel expense year-over-year."

Freight revenues for the second quarter increased 3.7 percent, or $80 million, to $2.26 billion compared with 2002 second-quarter revenues of $2.18 billion. Consumer Products revenues increased $63 million, or 7 percent, to $911 million reflecting record growth in our international, truckload and perishable sectors. Coal revenues increased $16 million, or 3 percent, to $504 million, largely from index-driven rate increases. Agricultural Products revenues grew $5 million, or 2 percent, to $317 million, reflecting increased ethanol shipments from plants in the Midwest to California. Industrial Products revenues declined $4 million, or 1 percent, to $531 million with revenue growth in both the building and construction products sectors offset by weak demand in the chemical and petroleum products sectors. Second-quarter freight revenues included increased fuel surcharges of $24 million compared with the prior year.

Operating expenses of $1.88 billion were $96 million, or 5 percent, higher than the same 2002 period primarily related to fuel expense and higher volumes handled. The $56 million increase in fuel expense primarily relates to an average increase of $0.16 per gallon in the cost of diesel fuel to $0.89 per gallon, after hedge.

Operating income was $412 million for the 2003 second quarter compared with $421 million for the same 2002 period. Lower income tax expense in the second quarter of 2003 primarily reflects a favorable tax settlement.

Common Stock Repurchases

During the 2003 second quarter, BNSF repurchased approximately 2 million shares of its common stock at an average price of $27.57 per share. This brings total repurchases under BNSF's 150-million share-repurchase program to approximately 120 million shares as of June 30, 2003, at an average price of $25.98 per share since the program was announced in July 1997.

Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSF operates one of the largest railroad networks in North America, with about 32,500 route miles covering 28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the mineral components of many of the products we depend on daily, and hauls enough coal to generate about 10 percent of the electricity produced in the United States.

Consolidated Financial Statements

Statements made in this release concerning projections or expectations of financial or operational performance, or concerning other future events or objectives or results, are "forward-looking statements" within the meaning of the federal securities laws. Forwardlooking statements involve a number of risks and uncertainties and actual results may differ materially from that projected or implied in those statements. Important factors that could cause such differences include, but are not limited to, economic and industry conditions: material adverse changes in economic or industry conditions, both within the United States and globally, customer demand, effects of adverse economic conditions affecting shippers, adverse economic conditions in the industries and geographic areas that produce and consume freight, competition and consolidation within the transportation industry, the extent to which BNSF is successful in gaining new long-term relationships with customers or retaining existing ones, changes in fuel prices, changes in the securities and capital markets, and changes in labor costs and labor difficulties, including stoppages affecting either BNSF's operations or our customers' abilities to deliver goods to BNSF for shipment; legal and regulatory factors: developments and changes in laws and regulations and the ultimate outcome of shipper and rate claims subject to adjudication, environmental investigations or proceedings and other types of claims and litigation; and operating factors: technical difficulties, changes in operating conditions and costs, competition, and commodity concentrations, the Company's ability to achieve its operational and financial initiatives and to contain costs, as well as natural events such as severe weather, floods and earthquakes or other disruptions of the Company's operating systems, structures, or equipment.

The Company cautions against placing undue reliance on forward-looking statements, which reflect its current beliefs and are based on information currently available to it as of the date a forward-looking statement is made. The Company undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Any corrections or revisions may appear in the Company's public filings with the Securities and Exchange Commission (SEC), which are accessible at www.sec.gov or on the Company's website at www.bnsf.com, and which you are advised to consult. Investors are encouraged to read the Company's earnings release and investors' report together with its SEC filings for a more complete picture and better understanding of the Company and its financial disclosures.

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000