news Volume 2, Issue 1 January 2006

Engineer Jeff Blasco, Crewe, Va., operates a locomotive that will employ LEADER technology to enhance efficiency.

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New technologies make railroad safer, more efficient Norfolk Southern is exploring new technologies to improve safety and overall efficiency. A system called LEADER®, or Locomotive Engineer Assist Display and Event Recorder, helps engineers determine optimum speed for fuel efficiency and safety. Another system, Optimized Train Control, seeks to improve safety by automatically combining data communications, positioning systems and operating limits. LEADER provides locomotive engineers with real-time information about a train’s operating conditions. It consists of an on-board computer that calculates and displays the optimum speed at which to operate the train, depending on topography and curvature of the track to be encountered, the train’s length and weight, and other operating conditions. NS tested LEADER in a 2004 pilot project involving 15 locomotives running coal trains between Winston-Salem, N.C., and Roanoke. The two-year pilot was a cooperative effort involving General Electric, New York Air Brake, NS and the Federal Railroad Administration. “The project proved that LEADER could reduce fuel consumption and minimize in-train dynamic forces,” said John Samuels, NS senior vice president operations planning and support. “In 2006, we will begin installing the technology on NS’ road locomotive fleet.” LEADER ultimately will be an integral part of the OTC system, a positive train control program which will be tested on the Charleston-to-Columbia, S.C., main line in 2006. OTC will combine data communications, positioning systems and onboard computers tied to a train’s braking systems to enforce speed and operating limits automatically. “Think of it as cruise control that saves energy and fuel consumption, plus it minimizes the probability of derailment,” Samuels said. Following a successful pilot program, NS plans to roll out OTC on other lines. The pilot project is expected to take two years to complete. “Overall, we’re trying to take the locomotive from a dumb machine to a smart machine,” Samuels said. NS is moving ahead swiftly with new technologies as part of a master plan to develop a “digital railroad” with a digital dispatching office that will communicate with a digital on board locomotive system capable of speed enforcement, movement authorities, locomotive and car maintenance monitoring, and fault detection.

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Team effort brings new way to recognize accomplishments at Chattanooga When seven employees of the Chattanooga Diesel Shop traveled to Roanoke in September 2004 to get fresh ideas to energize their safety process, they also discovered a more prominent way to recognize employee safety accomplishments. They saw an employee recognition center at Roanoke and wanted to do something similar. Jeff Hullander, mechanical supervisor; Terry Bradshaw, shop safety committee chairman; Ricky Allen, machinist; Steve Bennett, boilermaker; Mike Miller, machinist; Bruce Miller, electrician; and Carl Smith, fireman and oiler; presented the idea to Gary Naff, shop manager. Naff thought it was a great idea. Working with the safety committee, employees Mike White, senior general foreman, and Hullander came up with the design. The center was constructed with the help of maintenance department employees Dave Clemons, Ben Jones, George Ratledge, John Jenkins and Gary Nance. Clarence Turner, Kenneth Powel and Gary Webb painted the area.

Safety department wants to freeze out winter injuries Norfolk Southern’s safety department wants to help NS employees freeze out winter injuries. It distributed a minidisk that gives tips on staying safe in the winter elements and actions to avoid.

The safety department distributed a DVD with winter safety tips inside a thermal cup.

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“We wanted the DVD to be long enough to get the point across, but entertaining enough to keep the viewer’s attention,” said Haskel Stanback, assistant vice president safety. “Actually, the intention in putting it on minidisk was so that employees could take it home and share it with their families.” The DVD came inside an insulated cup that reminds NS employees and their families to “Set your course for safety, freeze out winter injuries.”

2006 capital spending exceeds $1 billion Norfolk Southern plans to spend $1.146 billion in 2006 for capital improvements to its railroad operations and subsidiaries. “Continuing strong demand for rail transportation is driving the need for additional investment in Norfolk Southern’s rail network,” said Chief Executive Officer Wick Moorman. “Our 2006 capital program ensures that our network and assets continue to be well maintained and also provides for increased capacity in terms of infrastructure, locomotives and cars, and new technology. These investments will enable Norfolk Southern to maintain its safe and reliable operations while providing for further improvements in customer service and capacity for continuing growth.” The anticipated spending includes $735 million for roadway projects, $358 million for equipment and $53 million for small projects and real estate. In roadway improvements, the largest expenditure will be $484 million for rail, crosstie, ballast and bridge programs. In addition, $37 million is provided for communications, signal and electrical projects, $35 million for maintenance of way equipment, $29 million for modifications to a new data center, and $15 million for environmental projects and public improvements such as grade crossing separations and crossing signal upgrades. Equipment spending includes $305 million to purchase 138 six-axle locomotives, upgrade existing locomotives, certify and rebuild 225 multilevel automobile racks and add supplemental restraints to multilevel racks. Equipment spending also includes $35 million for projects related to computers, systems and information technology, which will improve operations efficiency and equipment utilization. Business development initiatives total $103 million and include investments in intermodal terminals and equipment to add capacity to the intermodal network, increased capacity and access to coal receivers, bulk transfer facilities and vehicle production and distribution facilities.

NS people respond to others in need St. Louis food drive delivers

Mechanical Department employees in St. Louis conducted their annual food drive in December. Thanks to their generosity, 65 cases of canned goods were delivered to the New Life Evangelistic Center, a facility for the homeless. The group also collected $400 and donated the money to the Evangelical Children’s Home of St. Louis to help purchase movie tickets and fulfill the dreams of many children.

A beary happy holiday for the Salvation Army

Norfolk employees participated in the annual Salvation Army’s “Dress a Bear” program in December. The program provides bears for needy children. More than 200 bears were uniquely dressed and on display at Norfolk Southern’s headquarters prior to distribution to the children. Secretary Judy Delauney has dressed thousands of bears through the years, many of which were featured on a 2005 calendar used for fundraising by the Salvation Army.

Enola area employees support Marine Corps’ “Toys for Tots”

Norfolk Southern employees from the Enola Diesel Shop have worked with the U.S. Marine Corps for 11 years in its annual “Toys for Tots”

campaign. Steve Graybill, pipe fitter and shop safety committee chairman, coordinates the effort. This year, shop employees, with employees from Enola, Harrisburg and Rutherford, Pa., donated 10 large boxes of toys to the campaign.  “This is a very well organized and meaningful program that provides less fortunate children with Christmas gifts that, without our participation, they would not receive,” said Kevin Krull, assistant shop manager.

Top: Bears were dressed for donation to the Salvation Army Above — L to R: Carman Scott Allen, Student Carman Dave Shubert and Carmen Jerry Jefferson, Cedric Mason, Mike Kurtz, Ike Scott and Lloyd Armentrout in St. Louis Left — L to R: Staff Sgt. Campbell, Staff Sgt. Hixon, 1st Sgt. Finn, Maj. Cook, Gunnery Sgt. Lingren, Gunnery Sgt. Ramos in Enola, Pa.

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Moments from David Goode’s career Norfolk Southern Chairman David Goode’s career has spanned 40 years, beginning in 1965 at the Norfolk & Western Railway in the tax department. He was named chairman, president and chief executive officer in 1992, succeeding Arnold McKinnon. Goode’s vision and leadership have earned praise from the transportation industry. Railway Age magazine twice named him “Railroader of the Year.” Virginia Gov. Mark Warner named him “Virginian of the Year” for his commitment to the communities NS serves. Goode also received an honorary doctorate degree from Old Dominion University in Norfolk. Newsbreak looks back at some of his accomplishments as he nears retirement.

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NS opens New York Stock Exchange session commemorating 175th anniversary

A marquee displayed a congratulatory message for Norfolk Southern’s “175 years of moving the goods that move the economy.”

A replica of the Best Friend of Charleston greeted New York Stock Exchange employees and visitors to commemorate 175 years of Norfolk Southern heritage. Robin Chapman, manager public relations, is at the controls, joined by Rhonda Broom, manager advertising and promotions.

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Front row L to R: Ike Prillaman, vice chairman and chief marketing officer; Hank Wolf, vice chairman and chief financial officer; Landon Hilliard, partner Brown Brothers Harriman & Co., NS board member; Catherine Kinney, co-president New York Stock Exchange; David Goode, chairman; Wick Moorman, chief executive officer; Steve Tobias, vice chairman and chief operating officer; Jim Hixon, executive vice president law and corporate relations. Back row L to R: Harold W. Pote, vice chairman Retail Finances Division JPMorgan Chase & Co., NS board member; Don Seale, executive vice president sales and marketing; Arnold McKinnon, retired NS chairman; Kathryn McQuade, executive vice president planning and chief information officer; Mark Manion, executive vice president operations; John Rathbone, executive vice president administration.

NS employees eligible for vehicle, pc and loan discounts DaimlerChrysler, Ford, General Motors, Hyundai, Mazda, Mitsubishi, Nissan and Subaru are offering vehicle purchase and lease discounts to Norfolk Southern employees. Some exceptions apply, and dealer participation is voluntary. For more information, contact the manufacturers as follows: DaimlerChrysler: selected vehicles, employees only Log on to www.dc-rewards.com, enter supplier code S 70832 to obtain a control number, then follow instructions; or call 1-888-444-4321 to start the process. Ford: Ford Supplier Partner Recognition vehicle purchase program (Ford, Land Rover, Lincoln, Mazda, Mercury and Volvo) - Employees, retirees and spouses are eligible. For application: www.fordpartner.com , use partner code B9ZYK or call 1-877-XPLAN-00 GM: GM Supplier Discount (GM, GMC and SAAB) also *GMAC Log on to www.GMsupplierdiscount.com and enter the NS Company Code 857477 to obtain a personal authorization number. Take your Personal Authorization Number to the dealer and receive your discount. Call GM at 1-800960-3375 for further information. *The GM Supplier Discount Program has been expanded to include a mortgage program, GM Extended Family credit card, discounted GMAC Insurance (Home and Auto), real estate and moving services discounts and GMAC Education Loans.  Hyundai: new vehicles, employees only For application: www.hyundaiapp.com, enter CID# 918799 and follow instructions

address and you will receive a key or Call 1-800-VIP-0933

Computer/Technology Purchase Programs IBM The NS passcode is 3132 http://ibm.com/shop/ibmdeals/3132 or call (800) 426-7235 ext. 3132 Dell Computers NS member number is LS13389724 http://www.dell.com/eppbuy or call (800) 934-1652

Letters to the Editor “After reading the story of Mr. (Darnell) Wood in Newsbreak, it is good to know that there are people like Mr. Wood around who take the time to stop and help someone. But I would like to take your story a little further. Mr. Wood’s actions also may have saved an engineer the grief of killing someone, and the conductor who has to walk back looking for the broken body. In my 33 years with the railroad, I’ve done both.”  Ron Boggs     Engineer Louisville, Ky. “I couldn’t help but notice the picture in the December issue of Newsbreak that said, ‘The railroad gives me a good feeling. It’s in my blood.’ I worked for Southern Railway in the passenger traffic department from 1942 to 1945. It was the best job I ever had, and I met the grandest people in the world. Just to hear a whistle blow is music to my ears. My late husband was a yard engineer and he felt the same way. I wish everyone at Norfolk Southern a happy and safe new year.” Jean Robinson Sill Retiree

NS Newsbreak is published monthly by Norfolk Southern’s Corporate Communications Department, Three Commercial Place, Norfolk, VA 23510 - 9224. Editor Andrea Just Editorial Co-op Ignace LaCott Design Manager Frank Wright Printed in-house by the Atlanta Reprographics Department Questions and story ideas can be delivered to the editor via MEMO ID aljust, e-mail at [email protected], phone 757-823-5205 or fax 757-533-4874. For news updates, check the NS Web site at www.nscorp.com or subscribe to NSINFO using “about Norfolk Southern” and “e-mail lists” menu options. You also can subscribe to NSInvest and Service Alert this way. Retirees: To continue receiving Newsbreak after you retire, send your name and address to: NS Newsbreak Editor Three Commercial Place Norfolk, VA, 23510-9224

Mitsubishi: new vehicles only – employee and spouse Log on to www.mitsubishipartners.com, enter your NS e-mail address and this password: mitsu424. Call 1-887-386-8754 for further information. Nissan/Infiniti: Vehicle Purchase Program (new only) - Employees only www.insidenissan.com or call 1-800-299-4753 Subaru: VIP Program – Employees only www.vip.subaru.com enter your NS e-mail

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FIRST - CLASS MAIL U.S. POSTAGE PAID ATLANTA GA PERMIT NO. 1469

Three Commercial Place Norfolk, Virginia 23510

Inside newsbreak: Freeze out winter injuries _____________________ 2 NS people help those in need ___________________________________ 3

David Goode: A visual retrospective

NS opens trading at NYSE __________________________ 6

Volume 2, Issue 1 January 2006

See story on page 4