News Release

Burlington Northern Santa Fe Reports Record All-Time Quarterly Revenue

FORT WORTH, Texas, October 26, 2004:

• Freight revenues increased 16 percent, year over year, to an all-time quarterly record of $2.74 billion.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported third-quarter 2004 earnings of $0.01 per share which includes a net of tax charge of $288 million, or $0.76 per share to reflect changes in the way BNSF estimates asbestos and environmental liabilities. Third-quarter 2003 earnings per share were $0.55.

"We achieved an all-time record for quarterly revenues which enabled BNSF to record its third consecutive quarterly double-digit revenue increase," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "Substantial unit volume increases in three of our four business groups contributed to this strong performance."

Third-quarter 2004 freight revenues increased $373 million, or 16 percent, to an all-time quarterly record of $2.74 billion compared with 2003 third-quarter revenues of $2.37 billion. Of the 16 percent increase, about 3 percent was driven by fuel surcharges and about 3 percent came from price increases. Consumer Products revenues increased $168 million, or 18 percent, to an all-time quarterly record of $1.10 billion as a result of double-digit increases in the international intermodal, truckload and perishables sectors. Industrial Products revenues increased $80 million, or 14 percent, to an all-time quarterly record of $634 million reflecting strong demand in the construction products, building products, and petroleum products sectors. Coal revenues rose $78 million, or 15 percent, to $589 million resulting from record demand by utility customers. Agricultural Products revenues were up $47 million, or 13 percent, to $418 million driven by increased corn and wheat exports.

Third-quarter 2004 operating expenses, which include the pre-tax charge of $465 million, were $2.69 billion while prior-year third-quarter operating expenses were $1.97 billion. This increase was primarily due to the charge as well as historically high fuel prices and 12-percent higher freight volumes. Operating income, including the impact of the above charge, was $100 million. Third-quarter 2003 operating income was $430 million.

As a result of a comment letter received following its Form 8-K filing on October 7, 2004, BNSF is currently in discussions with the staff of the Securities and Exchange Commission concerning the charge recorded in the third quarter to reflect changes in the way BNSF estimates asbestos and environmental liabilities. The Company believes its accounting for the charge is appropriate. Regardless of the outcome of these discussions, the Company believes there will not be a material impact on the ongoing results of its operations or liquidity.

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 predictions or expectations of financial or operational performance, including ongoing results of the Company’s operations or its liquidity, or concerning other future events or results, are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from that projected in those statements. Important factors that could cause actual results to differ materially include, but are not limited to, economic and industry conditions: material adverse changes in economic or industry conditions, both in 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, adverse economic conditions in BNSF’s supplier base, 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 crew availability, 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, the ultimate outcome of shipper and rate claims subject to adjudication, developments in environmental investigations or proceedings with respect to rail operations or current or past ownership or control of real property, and developments in other types of claims and litigation, including those relating to personal injuries, asbestos and other occupational diseases, the release of hazardous materials, and damage to property, and in BNSF’s method for accruing reserves for such liabilities; and operating factors: technical difficulties, changes in operating conditions and costs, commodity concentrations, the availability of equipment and human resources to meet changes in demand, the extent of the Company’s ability to achieve its operational and financial initiatives and to contain costs, the effectiveness of steps taken to maintain and improve operations and network fluidity, including the management of the amount of traffic on the system to meet demand and the ability to acquire sufficient resources to meet that demand, congestion on other railroads, as well as natural events such as severe weather, floods and earthquakes or man-made or other disruptions of BNSF Railway’s operating systems, structures, or equipment including the effects of acts of terrorism on the Company’s system or other railroads’ systems.

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 statements. Any corrections or revisions may appear in the Company’s public filings with the Securities and Exchange Commission, which are accessible at www.sec.gov and on the Company’s website at www.bnsf.com, and which investors are advised to consult.

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