com . Davis Yard by 15 percent, so the company will
actually reduce emissions by up to 25 percent in just seven years.
"Rail is by far the most environmentally friendly method of transporting
freight. In addition, UP is increasing the use of
locomotives that can be tested more quickly.

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AUGUSTINE, Fla. It serves the densely
populated east coast of Florida and is the only rail-service provider to the
Port of Palm Beach, Port Everglades (Ft.
The program has the potential to reduce particulate emissions by an
estimated 15 to 20 percent at rail yards by June 2008 when all elements of the
program are phased-in.

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(EMD) to purchase four new SD70M -2 diesel locomotives. In
addition to its locomotive manufacturing activities, EMD has an extensive
aftermarket business offering customers replacement parts and a range of
value-added services for its locomotives. (FECR).

Union Pacific Corporation owns one of America's leading transportation
companies.

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At the
same time, more than 1,300 older units were retired, and more than 800
units were overhauled (remanufactured) to meet the stricter standards.

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The new locomotives, which were developed by EMD to meet the needs of the
North American freight market, are rated at 4,300 horsepower, meet strict EPA
(Environmental Protection Agency) emission standards and meet all current
safety requirements.EMDiesels.

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ST.

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FEC
expects to take delivery of all four locomotives in the 3rd quarter of 2006. OMAHA, Neb. Since 2000, Union Pacific has reduced
emissions from the J.

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Florida East Coast Railway to Purchase New Locomotives

fecrwy. Effective June 30, 2005 ,
the program focuses on phased-in initiatives at nine of Union Pacific's
largest rail yards in the state.

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FEC is proud to continue its affiliation with Electro-Motive and is excited to
add this new locomotive technology to our fleet, our first in over 20 years,"
said Gary Griffiths, Vice President and Chief Mechanical Officer of FEC.

About Electro-Motive Diesel, Inc.com .
Through drayage services and alliances with connecting carriers, FECR extends
its reach throughout the Southeast and to Chicago, New York/New Jersey and
Baltimore.

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As the new units will be able to haul greater capacity, they will
provide FEC a cost effective opportunity to haul additional revenue tonnage.

Florida East Coast Railway operates a Class II freight railroad along a
351-mile corridor between Jacksonville and Miami. To achieve this reduction, the program focuses on the
following actions:

* Eliminating non-essential locomotive idling

* Introducing lower sulfur diesel fuel for locomotives sooner than
required

* Reducing visual emissions through an aggressive testing and repair
program

* Reviewing impacts of air emissions from designated rail yards

* Assessing toxic air contaminants from designated rail yards

* Evaluating remote sensing technology for possible use to identify
high-emitting locomotives

* Evaluating other medium-term and longer-term actions to reduce
emissions

"Union Pacific is committed to doing its part to improve and protect the
environment, and we've made significant progress in emissions reduction
through the use of new technology," said Robert Grimaila, vice president,
Environment and Safety for Union Pacific Railroad.

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Flagler owns, leases
and manages 7.com .
This is the second significant agreement of this type.

* Moving and Modifying Locomotive Load Test Procedures -- In 2000, UP
reorganized testing operations at the yard so that they take place
further from residences . Approximately
85 percent of the locomotives permanently assigned to the
Sacramento /Roseville area are now equipped with this technology.

* Operational Efficiency Improvements -- UP has optimized the manner in
which trains are configured at the Davis Yard, reducing the amount of
locomotive operations necessary to assemble trains.

For further information contact Kathryn Blackwell at 402-544-3753 or
402-319-4288.

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Over the past several years , we've made significant progress in
modifying our operations to reduce emissions," Grimaila said .
Locomotive emissions from various work areas around the shop would be
'scrubbed ' to remove 98 percent or more of the NOx and PM. A strong focus on quality and a
strategically advantageous route structure enable the company to serve
customers in critical and fast growing markets.

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is one of two U. For more information, visit the Company's Web site at
http://www.feci."
The 15 percent emissions reduction in the Davis Yard since 2000 was
achieved through the following efforts:

* Fleet Turnover, Reducing Emissions -- Since January 2000, UP has
purchased more than 2,000 new fuel-efficient locomotives that comply
with new, stricter USEPA Tier 0, Tier 1 and Tier 2 standards.

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original
equipment manufacturers of diesel-electric locomotives.

Augustine, FL,
conducts operations through two wholly owned subsidiaries, Flagler Development
Company and Florida East Coast Railway, L.

* Fuel Efficiency Improvements -- Through fleet turnover and other
improvements, UP has achieved more than a 16 percent improvement in
fuel efficiency since 1994.

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"The four newly produced locomotives will support new business and provide
additional capacity in the movement of our aggregate and intermodal
businesses. Additional information may be found at
http://www., headquartered in St.

In October 2004 , Union Pacific announced an emissions reduction plan --
using a combination of new technology, operational changes and new equipment
-- to achieve a goal of a 10 percent reduction in emissions by the end of
2007 in its Davis Yard in Roseville.

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Florida East Coast Industries, Inc.

Union Pacific Announces Emissions Reduction Program in Cooperation With the California Air Resources Board

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The first one was
signed in 1998 and covered nitrous oxide emissions (NOx) from locomotives that
contribute to the formation of ozone."
The company expects to spend about $20 million over the next three years
to implement the various aspects of this emissions reduction program. Its principal operating company, Union Pacific Railroad, is the
largest railroad in North America, covering 23 states across the western
two-thirds of the United States. With competitive
long-haul routes between all major West Coast ports and eastern gateways, and
as the only railroad to serve all six major gateways to Mexico, Union Pacific
has the premier rail franchise in North America.

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C. The agreement was developed cooperatively
with CARB and BNSF Railway Company (BNSF) and approved by all three parties. The latest agreement represents the next logical step in
the process and will reduce particulate matter (PM ) emissions statewide.

* Cooperative Efforts -- UP has cooperated with the Placer County Air
Pollution Control District (PCAPCD) to apply for a grant from the West
Coast Diesel Emissions Reduction Collaborative chaired by Region 9 EPA
that would provide for a 'proof of concept' of some new technology.

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, Florida East Coast
Railway ("FEC"), the transportation subsidiary of Florida East Coast
Industries, Inc. In April 2005, Greenbriar
Equity Group LLC, Berkshire Partners LLC, and certain related parties acquired
EMD from General Motors Corporation . Lauderdale) and the Port of Miami.8 million square feet of commercial and industrial space, as
well as an additional 430,000 square feet under construction, and owns
approximately 657 acres of entitled land and approximately 2,511 acres of
additional Florida properties. It is a leading carrier of
low-sulfur coal used in electrical power generation and has broad coverage of
the large chemical -producing areas along the Gulf Coast.

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Headquartered in
LaGrange, Illinois, with additional facilities in London, Ontario, EMD
designs, manufactures and sells diesel-electric locomotives for all commercial
railroad applications and has sold its products in more than 70 countries
worldwide., Union Pacific Railroad
today announced signing of a voluntary agreement with the California Air
Resources Board (CARB) that will provide for continued reductions of diesel
emissions at the company's rail yards in California. Under the first agreement, NOx levels
from locomotives will be reduced by 65 percent in the South Coast Air Quality
Management District. R. Greater fuel efficiency means fewer
emissions.

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For more information, visit the Company's Web site at
http://www.

lms branchline

The Company is also a global
provider of diesel engines for marine propulsion, offshore and land-based oil
well drilling rigs, and stationary power generation.

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(NYSE: FLA) ("FECI"), announced an agreement with Electro -
Motive Diesel, Inc.:
Founded in 1922, Electro-Motive Diesel, Inc.S.L. FECR is a regional freight railroad that
operates 351 miles of mainline track from Jacksonville to Miami and provides
intermodal drayage services at terminals located in Atlanta, Jacksonville and
Miami.

* Auto Start-Stop Installations -- UP now has nearly 2,000 locomotives
with computer -controlled devices that limit engine idling to only the
time necessary to ensure safe and reliable operation.

"Many of the actions we took in Roseville will be implemented throughout
California to help reduce particulate emissions," Grimaila said.

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"We intend to
build upon this progress -- including what we've learned in the last eight
months from our aggressive work in Roseville -- to maintain our role as an
environmental leader in the transportation industry.

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The Company is the only diesel-electric locomotive manufacturer to
have produced more than 70,000 engines and has the largest installed base of
diesel-electric locomotives in both North America and internationally . "Together with CARB
officials, we've identified specific actions that will further our efforts by
combining the latest technology with operational changes to make an immediate
improvement to California's air quality.