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Subject:  GWR: Gennessee & Wyoming Q4 CC Date:  2/14/2008  11:06 AM
Author:  FreethinkerKW Number:  10 of 25

Looking at our fourth quarter revenue, you will see that’s freight revenue which is 61% of our total increase 9%. The significant dynamic to note is at a 6% decline in volume was more than offset by 16% increase in price per carload.

In this regard, I would note that despite the weak housing and paper markets, we’ve continued to maintain our forest products, pulp and paper revenues due to strong pricing. This in turn implies that we have growing leverage to any volume upturned in these markets.

One other item of note in our fourth quarter freight revenue with car are Illinois Co-shipments from the Powder River Basin were strong in the fourth quarter and more than offset weak haul traffic in Utah due to the closure of two mines, following the tragic mine collapsed last year.

Now, turning to the fourth quarter non-freight revenue which is 39% of our total, you will see an increase of 23%. Particularly important, were strong shipments at our port railroad and Galveston Texas, Corpus Christi Texas, Savannah Georgia, as well as strong iron ore exports to Whyalla, South Australia. Meanwhile our diluted earnings per share from continuing operations increased 8% to $0.40 per share in the fourth quarter 2007. As T. J will explain in further d