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“Norfolk Southern is poised and
determined to usher in a new era of growth.”

— Ike Prillaman, NS executive vice president, Marketing, Norfolk, Va.

You may request a printed copy of this Annual Report by sending us your mailing address by email or by calling 1-800-531-6757.

Financial Highlights

Chairman's Letter To Stockholders
Safe, service-oriented rail transportation is the future, and NS people share a vision to make the Thoroughbred the carrier of choice.

New Norfolk Southern System

Pursuing Growth Through Balanced Rail Competition
Reflecting its leadership role in railroading, NS secures an agreement to divide Conrail's routes and assets, which will restore balanced, competitive rail service in the Northeast.

NS And Conrail People Prepare For The Future
People, planning, investment, and technology are the focal points as NS prepares to integrate a large portion of Conrail operations into the NS system.

Service: Going Beyond The Expected
At NS, rail service is more than supplying dependable and on-time transportation. It's about knowing our customers' businesses, understanding their needs, helping them manage flows of supplies, finding ways they can maximize their use of rail, and encouraging development of transportation networks.

NS Grows Through Service
NS serves many markets, all with different characteristics and needs. It takes understanding and precise planning to provide good service to each of them.

NS Is Recognized For Performance
Customers and others recognize NS for outstanding service and overall excellence.

Employee Commitment Makes Safety Process Successful
The safety process is just the framework; employees are the ones responsible for its substance, direction, and vitality.

1997: The Year In Review
Railway revenues increase $122 million, setting a record for the company. NS reaches agreement to sell North American Van Lines.

Financial Overview
Income from railway operations was a record $1.2 billion, up 4% compared with 1996.

Eleven-Year Financial Review

Management's Discussion And Analysis

Consolidated Financial Statements

Notes To Consolidated Financial Statements

Report Of Management

Report Of Independent Auditors

Board Of Directors

Management Committee And Officers

Quarterly Financial Data

Glossary Of Terms

Stockholder Information

Reader Survey

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