News Release

Burlington Northern Santa Fe Reports Record Second-Quarter EPS

FORT WORTH, Texas, July 27, 2004:

• Second-quarter 2004 earnings were $0.67 per share, or 24 percent higher, than second-quarter 2003 earnings of $0.54 per share.
• Freight revenues increased 17 percent, year-over-year, to an all-time quarterly record of $2.64 billion. Of the 17 percent increase, 2 percent is being driven by fuel surcharges.
• Operating income of $508 million increased $96 million, or 23 percent, compared with the same period in 2003.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported record second-quarter 2004 earnings of $0.67 per share, a 24 percent increase over second-quarter 2003 earnings of $0.54 per share.

"Record all-time volumes coupled with a 2-percent average price increase contributed to our third consecutive quarter of double-digit earnings growth," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "We are pleased with the record second-quarter earnings and freight revenues. As we move toward fall peak season, our equipment availability and crew capacity should enable us to maintain network fluidity and handle forecasted volume growth."

Second-quarter 2004 freight revenues increased $374 million, or 17 percent, to $2.64 billion compared with 2003 second-quarter revenues of $2.26 billion. Of the 17 percent increase, 2 percent is being driven by fuel surcharges. Consumer Products revenues reached $1 billion for the first time as a result of a 12-percent increase in volumes in the international intermodal sector and a 17-percent volume increase in the truckload sector. Agricultural Products revenues were up $107 million, or 34 percent, due to increased corn and wheat exports. Industrial Products revenues increased $89 million, or 17 percent, to an all-time quarterly record of $620 million reflecting strong demand in the construction products, building products, petroleum products, and chemical and plastics sectors. Coal revenues rose $49 million, or 10 percent, to $553 million driven by record second-quarter volumes both from new and existing customers.

Operating expenses of $2.18 billion were $295 million, or 16 percent, higher than the same period in 2003. The increase in operating expenses was partially driven by a 13-percent increase in gross ton-miles and higher fuel prices. Additionally, operating expenses included approximately $30 million of environmental expenses due to developments at two former fueling facility sites.

Second-quarter operating income increased $96 million, or 23 percent, year-over-year to $508 million. BNSF’s operating ratio decreased to 80.7% compared with 81.8% for the same prior year period.

Dividend Increase

As announced July 22, 2004, the Board of Directors of the Company voted to increase its next quarterly dividend by 13 percent, or 2 cents per share, to 17 cents per share on outstanding common stock. This dividend will be payable on October 1, 2004 to shareholders of record on September 10, 2004. This equates to 68 cents per share on an annualized basis. This dividend increase is in addition to the 25 percent increase approved by the Board in July 2003.

BNSF’s subsidiary, The Burlington Northern and Santa Fe Railway Company, operates one of the largest railroad networks in North America, with about 32,500 route miles covering 28 states and two Canadian provinces. 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 is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

Financial Information

Statements made in this release concerning projections or expectations of financial or operational performance, including equipment availability, crew capacity, network fluidity and expected volume growth, or concerning other future events or objectives or results, are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking 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, changes in customer demand, effects of adverse economic conditions affecting shippers, adverse economic conditions in the industries and geographic areas that produce and consume freight, and changes in crew availability and labor difficulties, including stoppages affecting either BNSF’s operations or our customers’ abilities to deliver goods to BNSF for shipment; and operating factors: technical difficulties, changes in operating conditions and costs, the extent of the Company’s ability to achieve its operational goals and initiatives, the effectiveness of steps taken to maintain and improve operations and service, the effect of congestion on other railroads, as well as natural events such as severe weather, fires, floods and earthquakes, or the effects of acts of terrorism or other disruptions of the Company’s operating systems or its ability to use its 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