SOURCE: Burlington Northern Santa Fe

April 05, 2007 16:20 ET

Burlington Northern Santa Fe Will Record a Charge for Additional Environmental Expenses and a Technology System Write-Off

FORT WORTH, TX -- (MARKET WIRE) -- April 5, 2007 -- Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today announced it will record a charge of approximately $80 million, or $0.14 per share, in the first quarter of 2007. This charge reflects an approximate $65 million increase in environmental costs primarily relating to a recent final resolution with the State of Washington and its Department of Ecology on clean-up of an existing environmental site at Skykomish and an adverse reversal of a trial court decision on appeal regarding a site at Arvin, California. In addition, the Company will record a non-cash charge of approximately $15 million to write-off a technology system that has been replaced.

Including the charge, the Company anticipates first-quarter earnings per share of approximately $.96.

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

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