NEWS RELEASE
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                          Release No:  2000-06         Date:  September 27, 2000


Kansas City Southern                 Media Contact: William Galligan
Industries, Inc.                     816-983-1551
114 West 11th Street
Kansas City, MO 64105

NYSE Symbol: KSU

                        KANSAS CITY SOUTHERN RAILWAY
                     SELLS $200 MILLION DEBT SECURITIES

Kansas City Southern Industries, Inc. ("KCSI" or "Company", NYSE Symbol
"KSU") today announced the completion of a previously announced $200 million
debt securities offering, through its wholly owned subsidiary, The Kansas
City Southern Railway Company ("KCSR").  The offering, completed pursuant
to Rule 144A under the Securities Act of 1933 in the United States and
Regulation S outside the United States, consisted of 8-year Senior
Unsecured Notes due 2008.  The Notes bear an interest rate of 9.5%.  Net
proceeds from the offering of $196.5 million were used to refinance
existing bank term debt, which was scheduled to mature in January, 2001.

The Notes have not been and will not be registered under the Securities Act
of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.