Kansas City Southern Railway Announces New Appointments.

KANSAS CITY, Mo.--(BUSINESS WIRE)--Dec. 8, 1998--Kansas City Southern Railway Co. (KCS), the primary transportation subsidiary of Kansas City Southern Industries Inc. (KCSI) announced on Tuesday, Dec. 8, 1998, the following new appointments effective Jan. 1, 1999.

Gerald Davies has been named executive vice president and chief operating officer. Davies began his 28-year transportation career in 1970 at the U.S. Railway Association within the Department of Transportation. Since 1976, he has worked in various capacities at Burlington Northern Railway and CSXT, and most recently served as executive vice president of marketing at Canadian National Railway.

In his new position, Davies will help further develop the strategic and international marketing potential of Kansas City Southern's North American rail network and focus on creating opportunities to provide greater transportation value for the network's customers. He will report to KCS President & CEO Mike Haverty.

Bill Lyman has been named senior vice president-operations. Lyman has 28 years railroad operating experience and spent the last five years leading his own transportation and logistics consulting firm. Prior to that, he worked in various field operating and system transportation positions with the Santa Fe Railway from 1970 to 1993, including Chief Transportation Officer, based in Chicago.

In his new position, Lyman will be responsible for all operations and support departments on Kansas City Southern Lines. He will report to Haverty.

Ab Rees, Senior Vice President-Operations, has been named Senior Vice President-International Operations. In his new position, Rees will participate in the continued development and coordination of Kansas City Southern's NAFTA Railway. His primary emphasis will include the Texas Mexican Railway, of which he is chairman of the executive committee of the board of directors, TFM, KCS' joint rail venture in Mexico, and the Panama Canal Railway Co., the company's joint venture to revitalize the railroad in Panama. Rees, at 35-year industry veteran, has been with KCS since 1995. He will continue to report to Haverty.

KCS President and CEO Mike Haverty said the top management changes will strengthen KCS' commitment to development an independent NAFTA rail network that connects with every major rail system in North America.

"Gerald Davies is one of the top railroad executives in North America. His experience gives the NAFTA Railway a boost in developing its top and bottom lines," said Haverty. "Bill Lyman has a wealth of railroad operating experience and spent nearly two years in Mexico developing Grupo TFM's transportation plan and helping with the startup of the railroad."

"Ab Rees is a seasoned operating officer who can not only help enhance international operations but also help develop some of the potential operating talent we have, particularly in Mexico. I couldn't be any more pleased with these changes and what these outstanding railroaders bring to our franchise," said Haverty.

Kansas City Southern Railway is a Class I railroad with operations in 11 central and southeastern states. It is the flagship carrier of Kansas City Southern's NAFTA Railway comprised of Kansas City Southern Railway, Gateway Western Railroad, the Texas Mexican Railway, TFM and the Panama Canal Railway Company. Its headquarters are in Kansas City, Mo.