Burlington Northern Santa Fe disputes Crow Tribal Court decision seeking $250 million; BN to appeal to Tribal Appellate Court; Calls award unjustified.

FORT WORTH, Texas--(BUSINESS WIRE)--Feb. 6, 1996--On Feb. 6, 1996, in Crow Agency, Mont., a Crow Nation Tribal Court jury, composed entirely of enrolled members of the Crow Tribe, returned a verdict against Burlington Northern Railroad Co. (BN), an indirect subsidiary of Burlington Northern Santa Fe Corp. (BNSF) (NYSE:BNI), for $250 million in compensatory damages in a civil case arising out of a 1993 grade-crossing accident on the Crow Indian Reservation.

The accident occurred on Nov. 22, 1993, at approximately 10:15 a.m. at a public grade crossing, protected by crossbucks and advance warning signs, on a rural gravel road just south of Lodge Grass, Mont. The crossing had been accident free for its nearly fifty-year existence.

An automobile driven by 17 year-old Regina Bull Tail was struck by a BN train traveling 41 miles per hour -- well below the 60 miles-per-hour maximum track speed for the area. Bull Tail was fatally injured, as were her passengers -- Beverly Red Wolf, 54, Bull Tail's mother, and Chantina Red Horse, 15.

Both the driver and her mother were very intoxicated (blood alcohol levels of .18 percent and .32 percent, respectively). The plaintiffs are five heirs of Bull Tail and Red Wolf.

Jeffrey R. Moreland, BNSF senior vice president-Law, said, "We are shocked and astounded by the verdict, which we firmly believe is wholly unjustified and the product of proceedings that lacked any semblance of fundamental fairness."

Among other things, the Tribal Court judge refused to exclude from the jury panel numerous close friends and relatives of the plaintiffs and the deceased women, and ultimately, over BN's strenuous objection, permitted the jury to include a nephew of one of the plaintiffs.

Moreland stated that BN "intends to pursue vigorously an appeal to the Crow Tribal Appellate Court and, if unsuccessful there, to ask the federal district court in Billings, Montana, to set the verdict aside on the grounds that the Tribal Court lacked jurisdiction and that BN's fundamental due process rights were violated. BN believes that it has strong arguments available to it to eliminate altogether this adverse verdict."

Given the strength of BN's legal arguments, available insurance and existing reserves, BNSF does not expect that the ultimate outcome of this matter will have material impact on BNSF's results of operations or financial condition.

CONTACT: Burlington Northern Santa Fe Corp., Fort Worth

Richard Russack, 817/333-6116