Exhibit 99.1


                               [GRAPHIC OMITTED]

Media Contact:        Ginger L. Adamiak                  Phone:   (816) 983-1501
                      gadamiak@KCSouthern.com


         KCS Announces Closing of Debt Offering and Acceptance of 9 1/2%
                             Senior Notes due 2008

Kansas City,  Missouri - June 2, 2008 - Kansas City Southern ("KCS")  (NYSE:KSU)
today announced that on May 30, 2008, its  wholly-owned  subsidiary,  The Kansas
City Southern  Railway  Company  ("KCSR"),  closed on its  previously  announced
offering  of $275  million  principal  amount of 8%  Senior  Notes due 2015 (the
"Notes").  KCS also announced that on May 30, 2008, KCSR has accepted all 9 1/2%
Senior Notes that were validly  tendered and not validly  revoked on or prior to
May 21, 2008 (the "Consent Deadline") pursuant to its previously announced Offer
to Purchase and Related  Solicitation  of Consents dated May 8, 2008 (the "Offer
to Purchase").

A portion of the  proceeds  from the issuance of the 8% Senior Notes was used to
pay the total  consideration  of $1,024.29 for each $1,000 principal amount of 9
1/2% Senior Notes  tendered to KCSR,  plus accrued  interest up to and including
May 29, 2008.  The Offer to Purchase  remains open and is scheduled to expire at
midnight,  New York City time,  on June 5, 2008,  unless  extended or terminated
earlier (the  "Expiration  Time") by KCSR.  For any 9 1/2% Senior Notes tendered
after the Consent  Deadline and prior to the  Expiration  Time, the tender offer
consideration  will be $994.29 for each $1,000  principal  amount of such notes,
plus accrued interest to the applicable settlement date.

The remaining proceeds from the issuance of the 8% Senior Notes due 2015 will be
used to pay the fees and expenses  associated  with such  repurchase,  to reduce
borrowings under the KCSR revolving credit facility,  and for general  corporate
purposes.

KCSR  has  engaged  Morgan  Stanley  & Co.,  Incorporated  and  Banc of  America
Securities  LLC to act as Dealer  Managers  and Consent  Solicitation  Agents in
connection  with  the  Offer  to  Purchase  and  related  consent  solicitation.
Questions  regarding  the Offer to  Purchase  and  consent  solicitation  may be
directed to Morgan Stanley, at (800) 624-1808 (U.S. toll free) or (212) 761-5797
(collect),  or to Banc of America  Securities,  LLC, Debt Advisory Services,  at
(888) 292-0070 (U.S. toll free) or (704) 388-9217 (collect).

Headquartered  in Kansas City,  Mo.,  Kansas City  Southern is a  transportation
holding  company that has railroad  investments in the U.S.,  Mexico and Panama.
Its primary U.S. holding is The Kansas City Southern  Railway  Company,  serving
the central and south central U.S. Its  international  holdings  include  Kansas
City Southern de Mexico,  S.A. de C.V., serving  northeastern and central Mexico
and the port cities of Lazaro Cardenas,  Tampico and Veracruz,  and a 50 percent
interest in Panama Canal Railway Company,  providing  ocean-to-ocean freight and
passenger service along the Panama Canal.  Kansas City Southern's 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.,  Mexico and
Canada.

This press release may include  statements  concerning  potential  future events
involving  KCS and its  subsidiaries,  which  could  materially  differ from the
events  that  actually  occur.  The  differences  could be caused by a number of
factors  including  those  factors  identified  in the  "Risk  Factors"  and the
"Cautionary  Information" sections of KCS' Form 10-K for the most recently ended
fiscal year,  filed by KCS with the  Securities  and Exchange  Commission  (SEC)
(Commission file no. 1-4717). KCS will not update any forward-looking statements
in this press release to reflect future events or developments.

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