News Release

BNSF Leases Texas Line to TIBR

PITTSBURG, KANSAS and FORT WORTH, TEXAS, February 15, 2004:

The Timber Rock (TIBR) will add 30 miles of track between Silsbee and Kirbyville, Texas. TIBR is leasing the line from The Burlington Northern and Santa Fe Railway Company (BNSF) and operations will begin Monday, February 16, 2004. This additional TIBR trackage will serve customers in the towns of Call, Le Verte, Bessmay, Buna, Quinn, Evadale and Hayes, Texas.

The TIBR was created in 1998 and with this expansion will operate 170 miles of track. The TIBR interchanges with the BNSF at Tenaha and Kirbyville, and with the Kansas City Southern Railroad at Deridder. The TIBR is owned by Watco Companies, Inc. (Watco), a Pittsburg, Kansas, based company, which owns seven short line railroads and operates in 23 states.

"This is really an exciting addition which will expand our already strong presence in Texas and the Gulf Coast," said Rick Webb, President and CEO of Watco Companies, Inc.

"Shortline operators can provide valuable and efficient service that can support our growth plans by feeding us traffic through service offerings closely tailored to their shippers’ needs," says Pete Rickershauser, BNSF’s vice president, Network Development. "We have found the Watco organization to be nimble and competent service providers when dealing both with us and with our mutual customers, and we look forward to their successful operation of this BNSF property."

Webb said TIBR’s first focus would be to get to know the customers on the line and establish a solid foundation.

"We have been meeting with customers along the area of expanded service and expect a smooth start-up," Webb said. "The guiding principles of this company are threefold: improved customer satisfaction; improved profitability; and do both for the long-term. That is the message that we will take to every new customer, and it is a message we want to emphasize with every one of our partners," Webb said. "Our entire team will be focusing on this line to ensure that we are taking care of our customers, and that this transition is as seamless as possible."

The expansion of the TIBR is a prime example of positive relationships between Class I railroads and short lines, according to Webb.

"We appreciate the working relationship that exists between Watco and the BNSF. They first offered the opportunity for Watco to own the Timber Rock and have continued to provide business opportunities for Watco by expanding that area. We look forward to growth of this relationship in the future," Webb said.

Printable maps of the TIBR are available at www.watcocompanies.com ; click on Railroads and then on the Timber Rock Railroad.

A subsidiary of Burlington Northern Santa Fe Corporation (NYSE:BNI), 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 components of many of the products we depend on daily, and hauls enough coal to generate about ten percent of the electricity produced in the United States.

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