NEWS RELEASE - JULY 19, 1994
KANSAS CITY SOUTHERN INDUSTRIES, INC. ANNOUNCES RESULTS OF
STRATEGIC STUDY, SALE OF IFTC, AND RELATED TRANSACTIONS


Kansas City Southern Industries, Inc. announced that its subsidiary, DST
Systems, Inc. ("DST"), and Kemper Financial Services, Inc. ("KFS") today have
signed a letter of intent for the acquisition of Investors Fiduciary Trust
Company ("IFTC") by State Street Boston Corporation ("State Street").

State Street will exchange its stock with an approximate market value of $225
million for IFTC and the other assets of IFTC's holding company.  The
transaction is subject to execution of a definitive agreement and certain
regulatory actions and approvals.

State Street is a world leader in providing custodial and record keeping
services to the financial services industry.

"We are extremely pleased with the transaction and look forward to working
with State Street to continue to serve our clients with the quality services
we are known for," said Jerry Lavin, president of IFTC.

Marshall N. Carter, Chairman an Chief Executive Officer of State Street, said,
"The acquisition of IFTC will strengthen State Street's leadership position in
servicing financial assets worldwide.  We plan to operate IFTC as an
independent trust company based in Kansas City with the current management
team."

IFTC, located in Kansas City, Missouri, is a Missouri trust company that is
owned equally by KFS and DST.  The Company provides portfolio accounting,
custody and transfer agency services to the mutual fund industry.  IFTC
currently has approximately $130 billion in assets under custody.

Kemper Financial Services, Inc. is one of the nation's largest money managers.

Together with its affiliates, KFS has approximately $67 billion in assets
under management.

DST provides data processing, shareholder accounting, computer software
development, and other services to mutual funds, banks, insurance companies
and the health care industry.

New Holding Company for Financial Services and Other Services

KCSI also announced plans to form a new subsidiary holding company for its
non-rail businesses, consisting primarily of investment management (Janus
Capital Corporation and Berger Associates, Inc.) and data processing and
support services for mutual funds, banks, brokerages, insurance companies and
pharmaceutical claims (DST and Argus Health Systems).  In connection with the
proposed acquisition of KCSI's rail operations by Illinois Central Corporation
also announced today, the new subsidiary will be "spun-off" to the
stockholders of KCSI.

Landon H. Rowland, KCSI's President and Chief Executive Officer said:

"These transactions will give effect to KCSI's plan to structure its
operations so as to realize opportunities for increasing shareholder value. 
Our recent strategic evaluation will be now largely completed.  We believe the
combination of KCS Railway and Illinois Central will create a strategically
powerful transportation company with combined prospects greater than those of
the individual railroads.  At the same time, excellent growth opportunities
for our remaining financial services operations will be significantly
enhanced.  Both our transaction processing and asset management businesses
have excellent market positions with exciting prospects for improved revenues
and earnings.  Our plans are to pursue these opportunities vigorously."

The new subsidiary holding company is expected to further expand and develop
the businesses of Janus and DST, and to conclude KCSI's previously announced
acquisition of Berger.  (On July 15, 1994, the Berger 100 Fund, Berger 101
Fund and Berger Small Company Growth Fund announced that their Directors and
Trustees have approved KCSI acquiring control of BAI, the investment advisor
to the Berger Funds.)

Assets managed by Janus and Berger total approximately $25 billion, comprised
primarily of no-load equity mutual funds.  These companies will be operated
separately targeting growth in their traditional direct markets as well as in
the expanding deferred compensation market, and pursuing other distribution
channels, with an emphasis on insurance products.

DST will continue to expand the services it offers to the mutual fund industry
domestically and to pursue the development of international opportunities. 
Through its strategic partnership with an equity ownership in The Continuum
Company, DST plans to participate in the trend of providing data processing to
insurance companies.  Argus (a 50% owned joint venture) represents DST's
presence in the health care field.

Thomas A. McDonnell, Executive Vice President of KCSI, commented that, "This
new holding company structure provides a vehicle for us to pursue more
effectively the many exciting opportunities in financial services, insurance
and health care."

"The IFTC transaction also represents an attractive opportunity to expand our
existing partnership operations with State Street."

KCSI to Redeem Certain Common Stock Rights

The Board of Directors of KCSI also authorized redemption of the common stock
"Rights" issued pursuant to its Rights Plan in 1986.  The Board action
terminates the exercisability of such Rights and will result in a payment of
one and one-quarter cents ($0.0125) per share to common stockholders of record
on August 26, 1994, payable September 20, 1994.