, Florida East Coast
Railway ("FEC"), the transportation subsidiary of Florida East Coast
Industries, Inc. (FECR).00% senior
unsecured notes issued by Norfolk Southern Corporation (NYSE:NSC ). However, the
company's management has shown a willingness to use its increasingly
robust cash flow from operations to reduce its debt load, which fell
to $7. economy, NSC's annual rail
revenues have grown significantly over the past several years. Overall, NSC's cash
balance increased by $295 million in 2004.04 billion. In the second quarter of 2004, NSC's board of
directors increased the company's dividend by 25% to an annual
dividend of $0. Fitch
estimates that full-year dividend payments could rise past $170
million in 2005.

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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.

unbalanced bnsf

original
equipment manufacturers of diesel-electric locomotives.

retroweb namings

"The four newly produced locomotives will support new business and provide
additional capacity in the movement of our aggregate and intermodal
businesses . Lauderdale) and the Port of Miami. Flagler owns, leases
and manages 7. As NSC's revenue has grown , profitability has
remained strong, with operating margins rising from 16% in 2001 to 23%
in 2004 .
Looking out toward the remainder of 2005, Fitch expects demand for
rail transportation to remain strong. Strong demand coupled
with relatively modest capacity growth should result in continued
price increases for rail transportation.

rowie railcars

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. 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.

Florida East Coast Industries, Inc. The increase in profitability has been the result of NSC's
ability to increase prices in the face of heavy demand while
continuing to operate its network efficiently.53 billion.

railcars 765

(NYSE: FLA) ("FECI"), announced an agreement with Electro-
Motive Diesel, Inc.feci. (NYSE:UNP) and CSX
Corp.
NSC ended 2004 with relatively good liquidity.
Of the total debt, $662 million matures in 2005, and $316 million
matures in 2006. NSC's maturity profile for the period from 2005-2009
remains relatively smooth, with maturities in a range between $300
million and $500 million each year. The projected capital spending includes $671
million for roadway projects and $225 million of equipment spending.
Of the roadway capital spending, 65% will cover track and bridge
program work.

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S.

Florida East Coast Railway operates a Class II freight railroad along a
351-mile corridor between Jacksonville and Miami. The ability to maintain
its operational efficiency as demand increased has set NSC apart from
some other railroads , notably Union Pacific Corp.66
billion. 31, 2004, NSC's total balance-sheet debt stood at
approximately $7.

scrafford conrail

com .C. 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.53 billion at year-end 2004 from $7.0 billion bank facility
with an expiration of 2009.

tampers privatisation

For more information, visit the Company's Web site at
http://www.
While the improving domestic economy has led to increasing railroad
revenues and strong profitability over the past couple of years, NSC's
leverage, though improving, remains relatively high. From
2001-2004, NSC's full-year rail revenue increased 19% to $7.

lehmer unbalanced

As the new units will be able to haul greater capacity, they will
provide FEC a cost effective opportunity to haul additional revenue tonnage.S. In 2004, cash from operations was $1.

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(NYSE:CSX), that experienced significant deteriorations in their
operating efficiency in 2003 and 2004 under the strain of increased
freight demand.
NSC's capital spending has increased over the past several years
as the company has used its operating cash flow to invest in
improvements to its railroad network.

namings railcars

com . The
100-year notes mature in 2105. This debt consisted of unsecured notes,
secured equipment obligations, capital leases, and other obligations. In addition to its balance -sheet
debt, NSC also has significant off-balance-sheet obligations,
primarily operating leases on locomotives, rail cars, track lines, and
real estate.
In addition to increasing its level of capital spending, NSC has
used its increased operating cash flow for successively higher
dividend payouts, growing from a total of $93 million in 2001 to $142
million in 2004.

lehmer conrail

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.

For more information, visit the Company's Web site at
http://www. NSC has
estimated that its 2005 capital spending will be down somewhat from
2004, at $938 million. In January 2005, NSC's board again raised
the dividend by an additional 10% to $0. Trucking capacity continues to
be relatively tight, which will likely push some shipments over to the
rails.

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:
Founded in 1922, Electro -Motive Diesel, Inc. Fitch believes NSC is well
positioned to benefit from the healthy demand environment and expects
to see the company's cash flows remain relatively strong.

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FEC
expects to take delivery of all four locomotives in the 3rd quarter of 2006.

locomotives transrail

is one of two U.fecrwy. Augustine , FL,
conducts operations through two wholly owned subsidiaries, Flagler Development
Company and Florida East Coast Railway, L.
Notwithstanding the current debt issuance, Fitch expects to see
further opportunities for debt reduction over the near term as high
demand for transportation services keeps free cash flow strong. At year-end, the
company had $669 million in cash, cash equivalents, and short -term
investments on-hand, as well as an undrawn $1. From 2002-2004, full-year
capital spending grew from $689 million-$1. Included in the equipment spending figure is the
purchase of 52 locomotives , as well as various rail equipment upgrades
and investments in information technology systems.

lineside ollies

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.
NSC 's ratings reflect the company's strong operating performance
and cash flow potential, offset against a relatively high debt load.31 billion
from $6. Free cash flow (defined as
operating cash flow less capital spending and dividends) was $478
million for the year. Intermodal volumes are also expected to remain strong, with
robust imports driving growth in this sector.

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ST.

About Electro -Motive Diesel, Inc.17 billion.

railfanning trainstuff

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. Additional information may be found at
http://www., headquartered in St.L.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.

Fitch Rates Norfolk Southern's $300MM Debt Issue 'BBB'

Along with the improvement profitability, NSC's cash position has
been relatively strong.

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Business Editors

CHICAGO----Fitch Ratings has
assigned a rating of 'BBB' to the $300 million of 6. However, NSC does not have a share-repurchase program
in place, and Fitch does not believe the company will undertake such a
program in the near term.

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(EMD) to purchase four new SD70M-2 diesel locomotives.
Through drayage services and alliances with connecting carriers, FECR extends
its reach throughout the Southeast and to Chicago, New York /New Jersey and
Baltimore.44 per share annually.

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EMDiesels. 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.

40 per share.

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The Rating Outlook for NSC is Stable.88 billion at year-end 2003.
As a result of the strengthening U. NSC used $1.13 billion for investing activities, largely for
capital spending, while financing activities used $233 million in
cash, primarily related to debt repayments .
As of Dec.

tampers guideway

Florida East Coast Railway to Purchase New Locomotives

In April 2005, Greenbriar
Equity Group LLC, Berkshire Partners LLC, and certain related parties acquired
EMD from General Motors Corporation . In addition to its bank facility, NSC has
a revolving receivable sales program in place that provides the
company with an additional source of short-term liquidity, when
needed.

namings trainstuff

AUGUSTINE, Fla.com .