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Exhibit 1 Selected Railroad Statistics (1995)

BNSFa Conrail CSX

Railroad Operations Results ($ millions)


Operating Revenues $8,150 $3,686 $4,819
Operating Expenses 6,617 3,230 3,951
Operating Income 1,533 456 868
Operating Ratio (%)b 81.2% 79.9% 76.7%
Railroad Operations Data
Railroad Employees 45,656 23,510 29,537
Miles of Track Operated 31,326 10,701 18,645
Total Carloads Originated (thousands) 5,967 2,531 4,402
Tons Originated (thousands) 388,423 134,651 320,419
Railroad Productivity Data ($)
Revenue per Employee $178,509 $156,784 $163,151
Revenue per Mile of Track Operated 260,167 344,454 258,461
Revenue per Carload Originated 1,366 1,456 1,095
Revenue per Ton Originated 20.98 27.37 15.04
Financial Ratios (%)
Return on Sales 9.0% 11.4% 6.9%
Return on Average Equity 14.6 9.0 15.5
Leverage (Debt/Equity at book value) 84.0 59.5 40.1
Current Ratio 53.3 108.9 64.7
P/E Ratio 11.7 12.9 11.6
Stock Price ($ per share)
High $83.88 $73.88 $45.63
Low 47.50 51.00 35.13
Year-end 78.00 70.00 45.63
Norfolk Union
Southern Pacific

$4,012 $6,602
2,950 5,207
1,062 1,395
73.5% 78.9%

24,488 35,001
14,415 22,785
3,435 4,010
223,000 257,483

$193,690 $188,623
278,321 289,752
1,168 1,646
17.99 25.64

15.3% 12.6%
15.0 16.5
33.6 110.7
111.4 88.4
12.8 19.5

$81.25 $47.09
60.63 31.59
79.38 44.48
Exhibit 2 Conrail Consolidated Balance Sheet ($ millions)
1992 1993 1994 1995
ASSETS
Cash $ 40 $ 38 $ 43 $ 73
Accounts receivable 592 644 646 614
Deferred income taxes 0 227 249 333
Materials and supplies 121 132 164 158
Other current assets 37 21 23 28
Total current assets 790 1,062 1,125 1,206
Property and equipment 6,013 6,313 6,498 6,408
Other assets 512 573 699 810
Total assets $7,315 $7,948 $8,322 $8,424
LIABILITIES AND EQUITY
Accounts payable $ 63 $ 62 $ 119 $ 113
Current portion of long-term debt 207 146 130 181
Short-term debt 127 79 112 89
Other current liabilities 882 788 840 787
Total current liabilities 1,279 1,075 1,201 1,170
Long-term debt 1,577 1,959 1,940 1,911
Deferred income taxes 644 1,081 1,203 1,393
Other long-term liabilities 1,067 1,049 1,053 973
Total liabilities $4,567 $5,164 $5,397 $5,447
Total stockholders’ equity 2,748 2,784 2,925 2,977
Total Liabilities and Equity $7,315 $7,948 $8,322 $8,424
3Q 1996a

$ 33
655
337
144
30
1,199
6,495
693
$8,387

$ 158
138
65
889
1,250
1,891
1,420
888
$5,449
2,938
$8,387
Exhibit 3 Conrail Consolidated Income Statement ($ millions, except earnings per share)
1992 1993 1994 1995 3Q 1996a
Operating Revenues $3,345 $3,453 $3,733 $3,686 $2,771
Operating Expenses
Way and structures $465 $492 $499 $485 $364
Equipment 692 703 815 766 614
General and administrative 348 384 350 370 252
Transportation 1,306 1,283 1,379 1,324 1,048
Special charges -- -- 84 285 135
Total Expenses $2,811 $2,862 $3,127 $3,230 $2,413
Income from Operations $534 $591 $606 $456 $358
Interest expense (172) (185) (192) (194) (137) 0.3826816
Other income 98 114 118 130 83
Loss on disposition of subsidiaryb -- (80) -- -- --
Income before taxes $460 $440 $532 $392 $304
Income taxes 178 206 208 128 109
Changes in accounting principles -- (74) -- -- --
Net Income $282 $160 $324 $264 $195
Average number of primary shares outstanding (thousands)
$79742 $79575 $78620 $78837 $77443
Total number of fully diluted (Acquisition) shares
outstanding (thousands) $90500
Fully Diluted Earnings Per Share before effect of charges
$2.97 $3.00 $4.08 $4.69 $3.01
Exhibit 4 CSX and Norfolk Southern Consolidated Balance Sheets ($ millions)

CSX Norfolk Southern


1995 3Q 1996 1995 3Q 1996
ASSETS
Cash $ 660 $ 515 $ 68 $ 188
Accounts receivable 832 928 704 776
Deferred income taxes 148 151 145 152
Materials and supplies 220 217 62 58
Other current assets 75 108 365 284
Total current assets 1,935 1919 1,344 1,458
Property and equipment 11,297 11,720 9,259 9,460
Other assets 1,050 1,002 303 345
Total assets $14,282 $14,641 $10,905 $11,263
LIABILITIES AND EQUITY
Accounts payable $ 1,121 $1,073 $ 733 $ 747
Current portion of long-term debt 486 201 86 79
Short-term debt 148 276 45 45
Other current liabilities 1,236 1,149 342 338
Total current liabilities 2,991 2,699 1,206 1,209
Long-term debt 2,222 2,288 1,553 1,811
Deferred income taxes 2,560 2,657 2,299 2,351
Other long-term liabilities 2,267 2,182 1,018 1,037
Total liabilities $10,040 $ 9,826 $ 6,076 $ 6,408
Total stockholders’ equity 4,242 4,815 4,829 4,855
Total Liabilities and Equity $14,282 $14,641 $10,905 $11,263
Exhibit 5 CSX and Norfolk Southern Consolidated Income Statement ($ millions, except earnings per share)

CSX
1992 1993 1994 1995
Operating Revenues
Railway $4,434 $4,380 $4,625 $4,819
Motor carrier -- -- -- --
Container shipping 3,148 3,246 3,492 4,008
Other 1,152 1,314 1,491 1,677
Total Revenues $8,734 $8,940 $9,608 $10,504
Operating Expenses
Railway $4,313 $3,643 $3,696 $3,951
Other 3,456 4,291 4,680 5,124
Special charges 699 93 - 257
Total Expenses $8,468 $8,027 $8,376 $9,332
Income from Operations $266 $913 $1,232 $1,172
Interest expense (276) (298) (281) (270)
Other income 3 18 55 72
Income before taxes (7) 633 1,006 974
Income taxes 27 (274) (354) (356)
Accounting adjustments -- -- -- --
Net income 20 359 652 618
Average shares outstanding (thoussands) 205814 207830 209,303 210270

Earnings Per Share before effect of changes 2 2 3 4


Earnings Per Sharec $0.08 $1.73 $3.12 $2.94
Norfolk Southern
3Q 1996a 1992 1993 1994 1995 3Q 1996b

$3,661 $3,777 $3,746 $3,918 $4,012 $3,075


-- 830 714 663 656 515
2,977 -- -- -- -- --
1,245 -- -- -- -- --
$7,833 $4,607 $4,460 $4,581 $4,668 $3,590

$2,836 $2,851 $2,831 $2,875 $2,950 $2,213


3,901 869 769 641 632 490
- - - - - -
$6,737 $3,720 $3,600 $3,516 $3,582 $2,703
$1,096 $887 $860 $1,065 $1,086 $887
(188) (109) (98) (102) (113) (68)
19 98 137 85 142 68
927 875 899 1,049 1,115 887
(325) (318) (350) (381) (402) (317)
-- -- 223 -- -- --
602 558 772 668 713 570
212567 141624 139350 136,367 131,067 126912

3 4 4 5 5 4
$2.83 $3.94 $5.54 $4.90 $5.44 $4.49
The Acquisition of Consolidated Rail Corporation (A) 298-006
Exhibit 7 Projected Gains in Operating Income from a CSX-Conrail Merger ($ millions)
1997E 1998E 1999E 2000E
Gain in Operating Income from Cost Reductionb $0 $111 $259 $370
Gain in Operating Income from Revenue Increase $0 $ 50 $ 89 $117
Gain coming from Norfolk Southern
Gain coming from other sources 0 27 48 63
Total Gain from Revenue Increase $0 $77 $137 $180
Total Gain in Operating Incomec $0 $188 $396 $550

1997E 1998E 1999E 2000E


Total gain in operating income $0 $188 $396 $550
Tax (35%)* 0 65.8 138.6 192.5
Operating cash flow $0 $122 $257 $358
Cost of equity 16.45% 16.45% 16.45% 16.45%
Present value 104.94 189.81 226.39

Rate of inflation* 3%

Sum $2,039.56
Number of shares 90.5
Sinergies per share $23
Stand alone price $71
Share price with sinergies $94

* Acording to the case in Exhibit 7


2001Ea
$381
$121

65
$185
$567

2001Ea Terminal value


$567 $4342
198.45 1519.73
$369 2822.35
16.45% 16.45%
200.42 1318.00
The Acquisition of Consolidated Rail Corporation (A)
Exhibit 8 Selected Financial Market Data

Week Ending
October 18, 1996
Yields on U.S. Treasury Bills, Notes, and Bonds
3-month 5.11%
6-month 5.40
1-year 5.55
2-year 5.91
5-year 6.28
10-year 6.54
30-year 6.83
Yields on Long-term Corporate Bonds
Aaa 7.40
Aa 7.59
A 7.71
Baa 8.08
Interest Rates
Federal Funds 5.22
3-month Commercial Paper 5.42
3-month Certificate of Deposit 5.4
Prime Rate 8.25
Value Line Equity Betas
Conrail 1.3
CSX 1.35
Norfolk Southern 1.15
CAPM = rf + beta (rm - rf)
Risk free rate = 6.83%
Beta of the security = 1.30
Expected market return = 7.40%

CAPM = 16.45%