Norfolk Southern Facilitates $2 Billion of Industrial Investment Along Rail Lines in 2006

NORFOLK, VA – Norfolk Southern Corporation (NYSE: NSC) participated in the location of 70 new industrial facilities and provided support for the expansion of 45 additional industrial facilities along its rail lines in 2006.

New plants and expansions represent an investment of $2 billion by Norfolk Southern customers and are expected to create an estimated 3,578 customer jobs in the railroad’s territory and eventually generate more than 95,000 carloads of new rail traffic annually.

Norfolk Southern assisted state and local government and economic development officials throughout 19 states in helping customers identify ideal locations for new and expanded facilities. Following are some of the projects that are expected to have the greatest revenue impact on Norfolk Southern or employment impact on local communities.

Gatorade (a PepsiCo brand) opened a $140 million beverage plant in Progress Park, Wythe County, Va. The first major rail customer in Progress Park, the Gatorade facility will bring 290 new jobs to the region.
Columbia Farms Inc. opened a new feed mill in Leesville, S.C., to replace an older, less efficient mill, creating 30 new jobs.

Menards Inc., a hardware and building supply retailer, located a lumber distribution center in Holiday City, Ohio, that is expected to create 358 new jobs over the next several years.

Prairie Packaging Inc. opened a new manufacturing facility in Huntersville, N.C., that is anticipated will create 250 new jobs over the next four years.

Norfolk Southern assisted U.S. Fence Inc. in expanding its Bulls Gap, Tenn., facility by helping the company double its inbound track capacity. This expansion is expected to create 150 new jobs over the next two to three years.

Other industries locating or expanding on Norfolk Southern lines during 2006 included facilities for manufacturing or distributing lumber, paper, food products, steel, scrap metals, stone, construction materials, ethanol, chemicals, plastics and municipal waste.

Norfolk Southern works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system and provides free and confidential plant location services, including site layout, engineering and logistics assistance.
During the past 10 years, Norfolk Southern’s Industrial Development Department has participated in the location or expansion of 1,108 facilities, representing an investment of more than $25 billion and creating nearly 63,000 customer jobs in the territory served by the railroad.

Norfolk Southern Corporation is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states, the District of Columbia and Ontario, Canada, serving every major container port in the eastern United States and providing superior connections to western rail carriers. NS operates the most extensive intermodal network in the East and is North America’s largest rail carrier of metals and automotive products.

Any statements contained in this news release that are not related to historical facts are forward-looking statements as that term is defined in the Private Securities Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (noted in the corporation's filings with the SEC) that could cause actual results to differ.

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Norfolk Southern contacts:
(Media) Robin Chapman, 757-629-2713, (robin.chapman@nscorp.com)
(Investors) Leanne Marilley, 757-629-2861 (leanne.marilley@nscorp.com)