West Texas & Lubbock Railway begins Major Rail Line Upgrade

FOR IMMEDIATE RELEASE
December 14, 2009
Contact: Bruce Carswell (806) 637-8323
118 S. Clinton St., Suite 400, Chicago, IL 60661

Lubbock, TX – The West Texas & Lubbock Railway, an Iowa Pacific Holdings
company, has begun a major upgrade of its rail lines between Lubbock, Seagraves,
and Levelland, Texas. The $9.4 million project will upgrade the condition on over 70
miles of key rail lines by replacing deteriorated ties and rail as well as improving the
surface condition. Nearly 20 grade crossings will be upgraded with new modern
concrete panels. When complete, the improvements will greatly improve the efficiency and reliability of rail service to many vital rural industries in West Texas.

To facilitate the upgrade project, Iowa Pacific Holdings secured a Railroad
Rehabilitation & Improvement Financing (RRIF) loan from the Federal Railroad
Administration. This low interest loan program was enacted by Congress in 2000
specifically targeted at assisting small railroads like the West Texas & Lubbock
Railway undertake upgrade and expansion activities. To receive the loan, Iowa Pacific Holdings went through a very rigorous evaluation by the FRA to ensure that the project met the terms of the loan program and would deliver the maximum amount of benefit to the region.

“This project is significant as it is the first time in almost 50 years that these rail lines
have received this sort of investment in the future”, said West Texas & Lubbock
President Ed Ellis. “This investment will allow key rural industries continued and much improved access to economical and environmentally friendly rail transportation. These industries provide vitally important family wage jobs in the region and contribute to the vitality of the area with the goods and services they produce.”

Customers that currently use these rail lines include those engaged in minerals
extraction, agriculture, oil field development, and industrial products. “We are very
excited by the commencement of this project”, said Ronnie Harpe of Silverline
Transportation. “We provide key transloading and transportation of fracturing sand
throughout the oil fields of the Permian Basin. Without efficient rail service to our key
terminal in Seagraves, our ability to provide cost effective service to our customers
would be greatly jeopardized. Because of the investment that the West Texas &
Lubbock Railway is making in this upgrade project, we will be able to continue to
improve and expand our business in the future.”

Iowa Pacific is a shortline railroad holding company based in Chicago. Iowa Pacific
owns six shortline railroads in Arizona, Colorado, Illinois, New Mexico, Oregon, and
Texas. Iowa Pacific is also involved in rail development internationally with operations in the United Kingdom.