KCS
Media: Doniele Kane, 816-983-1372, doniele.c.kane@kcsr.com
Investors:  Bill Galligan, 816-983-1551, william.h.galligan@kcsr.com

NS
Media: Bob Fort, 757-629-2710, rcfort@nscorp.com
Investors: Leanne Marilley, 757-629-2861, leanne.marilley@nscorp.com

KCS, NS Reach Agreement to Improve Customer Service, Expand Capacity

      Kansas City, Mo., Norfolk, Va., December 2, 2005 - Kansas City
Southern (KCS) (NYSE: KSU) and Norfolk Southern Corporation (NS)
(NYSE: NSC) have agreed to form a joint venture that will increase
capacity resulting in improved service on the Meridian Speedway
between Meridian, Miss. and Shreveport, La.  The Meridian Speedway
is an important direct rail connection moving traffic between
the southeast and southwest U.S.  The increased capacity will
provide both railroads with the ability to handle greater volumes
and improve service for intermodal customers moving traffic between
the southeast and southwest parts of the U.S., and for all other
traffic including intermodal between the southeast and KCS' rail
network including Mexico.

	KCS will contribute a 320-mile rail line between Meridian,
Miss., and Shreveport, La. NS will invest $300 million in cash,
substantially all of which will be used for capital improvements
to increase capacity over a four-year period. The capital
improvements will include signal systems, extended sidings and
stretches of double track, upgrading track speed and other
capacity enhancements to the line.

      KCS will contribute its rail line to the joint venture for a
70 percent interest, while NS will invest cash for a 30 percent
interest. KCS will operate the line and provide service enhancements
to NS, which will be the sole provider of certain intermodal
transportation services over the line.

	Michael R. Haverty, KCS chairman, president and chief executive
officer, said, "This partnership with NS allows us to offer shippers
fast, competitive rail service along the shortest rail route into
the southeast from both Mexico and the southwest.  In addition to
connecting these rapidly growing regions, it will allow us to
extend the reach of the Port of Lazaro Cardenas not only into
Texas and the Midwest but directly into the southeast as well.
For many years, the Meridian Speedway in Louisiana and Mississippi
has had great potential.  Now, with this partnership, it will
realize that potential."

	Wick Moorman, NS president and chief executive officer,
said, "This is an important initiative that will enhance fluidity
of the nation's rail network and improve connections among rail
carriers. We believe that the transaction represents an
innovative way for carriers to work together to add critical
rail capacity, and that it is one more indication of our collective
commitment as an industry to pursue opportunities to improve
customer service across North America."

	The parties will seek approval for the transaction with
the U.S. Surface Transportation Board.

	Analysts and reporters will have an opportunity to ask
questions about the joint venture at 12:30 p.m. EST/11:30 a.m.
CST on Friday, December 2 by calling 800-955-1795
(U.S./Canada) or 706-643-0096 (International), conference
ID#2989679.  The discussion will be moderated by Mr. Haverty.
KCS executive vice president and chief financial officer
Ronald G. Russ and NS vice chairman and chief financial officer
Hank Wolf also will participate.

	Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama.  Its primary U.S. holdings include The
Kansas City Southern Railway Company and Texas Mexican Railway
Company, serving the central and south central U.S. Its
international holdings include TFM, S.A. de C.V., serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in Panama
Canal Railway Company, providing ocean-to-ocean freight and
passenger service along the Panama Canal.  KCS' North American
rail holdings and strategic alliances are primary components of a
NAFTA Railway system, linking the commercial and industrial
centers of the U.S., Canada and Mexico.

	NS is one of the nation's premier transportation companies.
Its Norfolk Southern Railway subsidiary operates approximately
21,300 route miles in 22 states, the District of Columbia and
Ontario, Canada, serving every major container port in the eastern
U.S. 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 automotive parts and
finished vehicles.

      This press release includes forward-looking statements which
speak only as of the date they are made, and neither KCS nor NSC
undertakes any obligation to update or revise any forward-looking
statement.  Forward-looking statements are subject to a number of
risks and uncertainties, and other factors which are, in some
cases, beyond the control of KCS and NSC and could materially
affect actual results, performance or achievements. Assumptions
and factors that may cause actual results to differ materially
from those contemplated by these forward-looking statements are
more particularly described in KCS's and NSC's respective annual
and quarterly reports filed with the SEC. Documents filed with
the SEC by KCS and NSC are accessible on the SEC's website at
www.sec.gov, KCS' website at www.kcsi.com and NSC's website at
www.nscorp.com.

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