Dear Fellow Employees,

In February, we again salute the contributions of African-Americans to our industry and to our company. African-American Railroader Month at Norfolk Southern is a time to learn more about those contributions and show our appreciation for their achievements.

Some, such as the late John W. Whitaker, for whom we named our Austell, Ga., intermodal facility, were pioneers. Others, such as Andrew J. Beard, who invented the modern coupler, brought ideas that made our industry safer and more productive. It is all part of a corporate culture that values the unique talents and abilities of all.

That is the goal for us at Norfolk Southern - to make the best use of everyone's talents in a work environment of fairness, mutual respect and professionalism. Our success depends on it. Expanding our knowledge and appreciating the contributions of all adds to our success.

During February, there will be opportunities to learn about the contributions of African-Americans. Some work locations will hold "lunch and learn" sessions. Historical perspectives and profiles of African-Americans who have made and are making a real difference in railroading today will be posted on our Web site. A number of local activities are also planned.

I encourage you to take time to participate in activities at your work site and experience a unique part of our tradition and heritage.

David R. Goode
chairman, president and chief executive officer

African-American Railroader Month presents "profiles in positive change"

Norfolk Southern celebrates the contributions of African-Americans to the railroad industry and to the company during February.

"African-American Railroader Month is a time to expand our knowledge of our industry and our company," said Alphonso Tabb, manager agreement recruiting. Tabb chairs a team coordinating activities for the month. He said the focus for the monthlong salute is "profiles in positive change."

"We're focusing on positive achievements of African-Americans who have had a major influence on the success of our company and our industry," he said. "We're also trying to show how the company and industry have changed to become more inclusive."A number of activities are planned. "Lunch and learn" sessions will be held at various locations throughout the NS system. Each session will feature a speaker and a presentation by a Diversity Council member plus lunch. Locations, times and dates are posted on the company's Web site at www.nscorp.com and at local facilities.

The Web site will feature profiles of those whose inventions and ideas made the industry safer and more productive. Among the Web site stories is a feature about North Carolina Central University, a historically black university, and profiles of active NS employees who are graduates of the university. Some active NS employees whose careers began in 1973 give their perspectives on their 30-years with the company as well, and everyone can compete for prizes in a weekly Web-based trivia quiz.

"We want this to be interesting, educational and fun," Tabb said. "This is a great opportunity for all of us to learn more and to better appreciate the many contributions of African-Americans to the transportation industry and Norfolk Southern."

This poster, honoring Andrew Jackson Beard, will be distributed systemwide to celebrate the accomplishments of African-American railroaders. Beard was a farmer, carpenter, blacksmith, railroad worker, businessman and inventor. An injury on the job inspired him to invent the "jenny coupler," making the industry a safer place to work. Other African-Americans' inventions are featured on NS' Web site at www.nscorp.com.

EPA honors NS

Norfolk Southern received the Environmental Protection Agency's Emergency Preparedness and Prevention Partnership Award at the EPA Region III Conference in Baltimore Dec. 12, 2002.

The award honors NS for its sponsorship of events designed to increase awareness of rail safety and to better prepare emergency responders. The company's hazardous materials group and environmental operations engineers conducted more than 100 programs, including a Transportation Community and Emergency Response - TRANSCAER - whistle-stop tour and the Atlanta Fireman's Muster, reaching nearly 5,000 emergency responders.

Dave Schoendorfer, manager hazardous materials, was grateful for the award. "We appreciate the EPA's recognition of our efforts," he said. "But the greatest satisfaction is just having the opportunity to interact with the local firefighters and police officers who are the key to a successful response program."

Piedmont Division overcomes challenges of December ice storm

Norfolk Southern employees in the Piedmont Division worked overtime following an ice storm that struck North Carolina on Dec. 4 and 5, 2002. The storm left one-half inch and more of ice around the Charlotte area, cutting off power to millions, some for more than a week.

An official at Duke Power called it the worst ice storm they had every had.

Charlie Rickman, Piedmont Division superintendent, said everyone worked together to clear tracks, restore signals and provide service to meet the community's critical needs.

"Our maintenance of way workers helped remove more than 3,000 trees that had fallen on NS rail lines due to ice accumulation," he said. "The communications and signals department helped us maintain safe train operations, and our train crews worked to make sure coal reached local power plants to keep them operating.

"The University of North Carolina hospital, which has its own power supply, made a special effort to thank us for supplying them with coal," Rickman said. "They said we kept them in business."

Rickman said teamwork was the key to quickly restoring operations. "Every one of our 2,000 division employees did an excellent job," he said. "We were able to restore our service safely and efficiently by working together the Thoroughbred way."

NS signal engineer recognized for culinary interests

Charles E. Duncan, a signal engineer in the Communications and Signal Department in Atlanta, was featured in The Atlanta Journal-Constitution's "In the Kitchen With Charles … " Dec. 12, 2002. His son, Curtis, a sophomore marketing major at Hampton University in Hampton, Va., submitted his father's name as a great home chef.

Duncan, a railroader for over 32 years, is a self-taught chef who says he started cooking not just for the fascination of it but also to impress his female friends.

"I'm sure that my cooking was an instrumental influence in my marriage of over 22 years to my wife, Pam," he said. He credits his parents' culinary skills as a major influence in developing his own interests. His not-so-secret ambition is to open the best restaurant in the world.

Duncan was not aware that an article was going to be published about his cooking. His family kept it a secret until the day of publication.

"It was a very pleasant surprise," he said.

Thoroughbred EXTRA premium paper service launched

Norfolk Southern Railway launched its Thoroughbred EXTRA premium paper service to help customers manage their supply chains and is offering an incentive for shippers to take advantage of the new service.

Thoroughbred EXTRA offers shippers and receivers of paper products customized supply chain solutions that go beyond traditional rail service to include shipment tracking, inventory management and warehouse management. By combining NS' scheduled railroad operations with a network of certified distribution facilities and MODALGISTICS'® ModalView® inventory management system, the new service offers tailored business solutions for moving newsprint, wood pulp, pulpboard and printing paper.

Customers can choose to receive a single- source, end-to-end view of their inventories and locate their shipments anywhere in the supply chain, 24 hours a day, seven days a week.

"Customers have expressed interest in a fully integrated multimodal solution that meets their order-to-delivery requirements, while at the same time giving them the comfort of knowing their products are being actively managed," said David Lawson, president of MODALGISTICS. "Thoroughbred EXTRA targets the truckload market by combining the economies and consistency of rail transportation with the convenience of truckload delivery through one of our certified distribution centers."

A network of 22 Thoroughbred EXTRA certified paper distribution centers provides customers with premium paper handling and fully integrated logistics services, including just-in-time delivery, order fulfillment and freight consolidation.

Thoroughbred EXTRA also offers customers ways to streamline and automate billing, freight payment, invoicing and other back-office services.

Planned 2003 capital spending announced

Norfolk Southern plans to spend $798 million for capital improvements in 2003.

"We are continuing our solid commitment to safety and service during challenging economic times with spending levels designed to keep our system strong and our service steadily improving," said David R. Goode, chairman, president and chief executive officer. "At the same time, we are improving the utilization of the assets we already have, which will allow us to handle increased levels of business in the future."

The anticipated spending includes $499 million for roadway projects and $246 million for equipment.

In roadway improvements, the largest expenditure will be $383 million for rail, crosstie, ballast and bridge programs. In addition, there is $29 million provided for communications, signal and electrical projects and $20 million for environmental projects and public improvements such as grade crossing separations and crossing signal upgrades.

Other roadway projects include $36 million for marketing and industrial development initiatives, including increasing track capacity and access to coal receivers and vehicle production and distribution facilities, and continuing investments in intermodal infrastructure.

Equipment spending includes $183 million to purchase 100 six-axle locomotives, upgrade existing locomotives and certify and rebuild multi-level automobile racks. Equipment spending also includes $47 million for projects related to computers and information technology, including allocations for additional security and backup systems.

Protect your identity

Identity theft is an increasing crime. Protecting personal information may help prevent your becoming a victim of identity crime. You can limit opportunities for thieves by:

• Checking credit reports at least once a year from all three of the credit bureaus (Equifax, Experian and Trans Union). It costs about $9 per report, although laws in six states give consumers the right to obtain these reports free once a year.
• Guarding personal information, sharing it only with people or companies that need to know. Do not give out Social Security numbers or credit card account information to unsolicited callers.
• Destroying all personal papers, shredding any with sensitive information, before putting the paper in the trash.
• Reducing the sharing of personal financial data by "opting out" of all programs that permit your bank and other financial institutions to share personal data with other firms. Call 888-567-8688 (888-5OPT-OUT) to limit the number of preapproved credit card offers received. (Social Security number will be requested).

If all that fails, and someone has used your Social Security number, credit card or bank accounts, here are ways to help restore financial health:

• Call the three credit reporting agencies. Put a fraud alert on your file and ask for your latest credit reports (they are free if you've been a victim of identity theft). Examine each carefully for fraudulent activity and inaccuracies.
• File a police report and keep a copy to show creditors where fraudulent accounts have been opened.
• Send a registered letter to all creditors where fraudulent accounts have been opened and include the police report and an affidavit notifying them of the identity theft. Ask for a letter of release to clean up the account and acknowledge that it was fraudulent.

Resources:

• Equifax: 800-685-1111, www.equifax.com
• Experian: 888-397-3742 (888-EXPERIAN), www.experian.com
• Trans Union 800-888-4213, www.tuc.com
• Federal Trade Commission: 877-438-4338 (877-ID THEFT), www.consumer.gov/idtheft
• Identity Theft Resource Center: 858-693-7935, www.idtheftcenter.org
• Privacy Rights Clearinghouse: 619-298-3396, www.privacyrights.org

(Source: Washington Post)

NS employees eligible for vehicle discounts

Ford, General Motors, Isuzu, Nissan and Subaru are offering vehicle purchase and lease discounts to Norfolk Southern employees.

For more information, contact the manufacturers as follows:

Ford: Ford Supplier Partner Recognition vehicle purchase program (Ford, Land Rover, Lincoln, Mazda, Mercury and Volvo) - Employees, retirees and spouses are eligible.

www.ford.com
For application: www.fordpartner.com partner code B9ZYK or call 877-XPLAN-00

GM: GM Supplier Discount (GM, GMC and Saab) available through Sept. 30, 2003 - Employees only

www.GM.com
For application: www.GMsupplierdiscount.com or call 800-960-3375
Some exceptions apply, and dealer participation is voluntary.

Isuzu: VIP Purchase and Lease Program (new only) - Employees only

www.isuzu-vip.com (user ID is vip, password is greatdeals), E-mail vip@americanisuzu.com or call 800-995-7372
Some exceptions apply, and dealer participation is voluntary.

Nissan: Vehicle Purchase Program (new only) - Employees only

www.insidenissan.com or call 800-299-4753
Some exceptions apply, and dealer participation is voluntary.

Subaru: VIP Program - Employees only

www.vip.subaru.com, e-mail vipprogram@subaru.com or call 800-VIP-0933
Some exceptions apply, and dealer participation is voluntary.