Union Pacific Announces Annual Distribution of Interest on Certain Bonds and Debentures.

OMAHA, Neb. -- Union Pacific Railroad Company announced today that it has determined the contingent interest and sinking fund payments due in respect of Available Net Income for 2007 under the terms of certain bonds and debentures originally issued by the Missouri Pacific Railroad Company (MPRR). Union Pacific Railroad Company is required to publicly announce such annual determination. The bonds and debentures were assumed by Union Pacific Railroad Company as a result of the merger of MPRR with and into Union Pacific Railroad Company on January 1, 1997.

On April 1, 2008, Union Pacific Railroad Company will pay contingent interest ($4.75 per $100 principal amount) on each of the Missouri Pacific Railroad Company 4 3/4% General Mortgage Income Bonds Series A Due 2020 and the Missouri Pacific Railroad Company 4 3/4% General Mortgage Income Bonds Series B Due 2030. The Company will also on April 1, 2008, make sinking fund payments of $349,630 and $338,020, respectively, for the Series A and Series B bonds. In addition, on April 1, 2008, Union Pacific Railroad Company will make contingent interest payments ($5.00 per $100 principal amount) for the Missouri Pacific Railroad Company 5% Income Debentures Due 2045.

The close of business on March 28, 2008, has been established as the record date for determining persons owning registered Bonds and Debentures without coupons who are entitled to receive interest. Interest on registered Bonds and Debentures without coupons will be paid by check mailed to the registered holder, as of the record date, at the address indicated in the Trustee's records.

A copy of the 2007 Available Net Income calculation is available for inspection during regular business hours at the Trustee's offices, The Bank of New York Mellon, 2 North LaSalle, Suite 1020, Chicago, IL 60602.