October 23, 1998

To Whom It May Concern:

Thank you for your interest in the Year 2000 (Y2K) issue. Guilford Rail System is aware of the risks associated with Y2K and has begun assessing our mission-critical information systems for compliance. We will continue to work with our system vendors to ensure Y2K system upgrades are made and tested before January 1, 2000.

At this time, we do not expect any disruptions to our operations due to Y2K system problems. However, we are developing contingency plans to help minimize disruptions to client service in the unlikely event that Y2K enhancements are not made to our systems in time.

Currently, our financial system (Computer Associates Financials), and AS400 operating systems are Y2K compliant as represented by their respective vendors Computer Associates and IBM. We are currently applying all Y2K upgrades to our Transportation software as provided by the software developer.

Please feel free to check back with us again if you would like to be updated on the status of our Y2K upgrades.