News Release

BNSF Responds to Soft Economy

FORT WORTH, Texas, April 4, 2001:

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today announced a number of actions in response to the continuing softness in the U. S. economy that is resulting in a flat year-over-year freight revenue outlook. The actions are to:

• Eliminate approximately $100 million of planned 2001 capital and other investments, primarily for certain expansion and discretionary projects; and
• Implement initiatives to lower ongoing quarterly operating expenses by about $20 million.

"These actions are necessary," said Matthew K. Rose, BNSF President and Chief Executive Officer, "because of continued softness in the overall U.S. economy, especially industrial production, and weakening consumer confidence. We need to align our spending with our revenue forecast for the balance of 2001 to protect our goal of improving free cash flow, while providing our customers with the service they require."

BNSF Announces First-Quarter Charges and Earnings per Share Expectation

BNSF also announced approximately $40 million of non-recurring, after-tax expenses for the write-down of certain non-rail investments. BNSF's first-quarter results, to be announced on April 24, 2001, will include charges for:

• FreightWise, an Internet transportation exchange;
• Pathnet, a telecommunications venture; and
• A portfolio of other non-core real-estate investments.

In addition, first-quarter results will include an after-tax $6 million extraordinary charge on the early extinguishment of debt.

"Without these charges, we expect first quarter earnings per share to be within the range of analysts' expectations but slightly below consensus," Rose pointed out.

Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSF operates one of the largest railroad networks in North America, with 33,500 route miles covering 28 states and two Canadian provinces.

Forward-looking Information. This news release contains forward-looking information, including data concerning revenues, earnings, free cash flow and capital spending expectations. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, general e conomic downturns, which may limit demand and pricing; labor matters, which may affect the costs and feasibility of certain operations; competition and commodity concentration, which may affect traffic and pricing levels; and adverse weather conditions and unforeseen events, which may affect operations and capital needs.

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000