Exhibit 99.1

UNION PACIFIC REPORTS RECORD FOURTH QUARTER

AND FULL YEAR EARNINGS

Operating Ratio Improves to 79.6 percent

FOR IMMEDIATE RELEASE:

OMAHA, Neb., January 25, 2007

Fourth Quarter 2006 Highlights

• Record fourth quarter 2006 commodity revenue totaled $3.8 billion, up 9 percent.

• Operating income grew 52 percent to an all time quarterly record of $810 million.

• Fourth quarter operating ratio of 79.6 percent was a 5.7 point improvement versus fourth quarter 2005 and a quarterly best.

Full Year 2006 Highlights

• Full year commodity revenue grew 15 percent to an all time record of $14.9 billion.

• Operating income of $2.9 billion was an all time record, up 61 percent.

• Full year operating ratio improved 5.3 points versus 2005 to 81.5 percent.

Union Pacific Corporation (NYSE: UNP) today reported 2006 fourth quarter net income of $485 million, or $1.78 per diluted share, compared to $296 million, or $1.10 per diluted share in the fourth quarter of 2005.

“Our key accomplishments for the fourth quarter were the nearly six-point improvement in operating ratio and best-ever operating income,” said Jim Young, President and Chief Executive Officer. “Overall, we turned in a great fourth quarter performance—a strong finish to a record year. In 2006, we significantly improved our return on invested capital and laid the

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foundation for further operational and financial improvement, benefiting both our customers and our shareholders.”

2006 Fourth Quarter Summary

In the fourth quarter of 2006, Union Pacific Corporation reported operating income of $810 million compared to $533 million in fourth quarter 2005, a 52 percent improvement.

• Operating ratio improved to 79.6 percent versus 85.3 percent in 2005.

• The Company’s commodity revenue grew nine percent to a fourth quarter best $3.8 billion, with five of the six business groups posting increases for the quarter. The main component of the growth was an eight percent increase in average revenue per car (ARC). Growth in ARC resulted from yield improvements and the Company’s fuel surcharge programs.

• Business volumes, as measured by total carloads, grew one percent to 2.4 million.

• The Company’s fuel consumption rate, as measured by gallons per thousand gross ton-miles, was a fourth quarter best rate of 1.27 versus 1.30 in the fourth quarter 2005.

• The Railroad’s average quarterly fuel price including transportation and taxes was $1.94 compared to $2.08 per gallon in 2005.

• Quarterly average train speed, as reported to the Association of American Railroads, was 22 mph, up 1.5 mph from the fourth quarter of 2005. Quarterly terminal dwell time improved 13 percent to 25.9 hours versus 29.8 hours reported in the fourth quarter of 2005.

Fourth Quarter Commodity Revenue Summary versus 2005

• Agricultural and Energy each up 20 percent

• Chemicals up 9 percent

• Intermodal up 4 percent

• Automotive up 2 percent

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• Industrial Products was flat

2006 Full Year Summary

“2006 was a great year for Union Pacific,” Young said. “Our network management initiatives and capacity expansion programs helped us move record volumes for our customers.”

Full year 2006 net income was $1.6 billion or $5.91 per diluted share, versus $1.0 billion, or $3.85 per diluted share reported in 2005. The 2005 full year results included a non-cash income tax expense reduction of $118 million after-tax, or $.44 per diluted share. The comparison of 2006 and 2005 earnings, excluding the tax item, would be $5.91 per diluted share versus $3.41 per diluted share, a 73 percent increase.

Railroad commodity revenue totaled a record $14.9 billion, a 15 percent increase. The main driver of this growth was an 11 percent increase in ARC to $1,509. Growth in ARC resulted from yield improvements and the Company’s fuel surcharge programs.

• Business volumes, as measured by total carloads, increased three percent to a record level of 9.9 million.

• Operating income was a record $2.9 billion, a 61 percent increase from $1.8 billion in 2005.

• Operating ratio improved 5.3 points to 81.5 percent versus 86.8 percent in 2005.

• The Company’s fuel consumption rate was a full year best at 1.28 versus 1.30 in 2005.

• The Railroad’s average yearly fuel price was $2.06 compared to $1.77 per gallon in 2005, a 16 percent increase.

• Average system speed, as reported to the Association of American Railroads, was 21.4, up 0.3 mph compared to 2005. Average terminal dwell time improved 5 percent versus 2005, to 27.2 hours from 28.7 hours.

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2007 Outlook

“While economic indicators are mixed, we are optimistic about what we see ahead for Union Pacific in 2007,” Young said.

Non-GAAP Reconciliation

The full year 2005 net income of $908 million and earnings per diluted share of $3.41, which excluded the income tax expense reduction item reported in the third quarter of 2005, are non-GAAP measures. Management believes these measures provide an alternative presentation of results that more accurately reflects on-going Company operations, without the distorting effects of the income tax expense reduction item. These measures should be considered in addition to, not as a substitute for, net income and diluted earnings per share. The following table reconciles full year 2005 net income and diluted earnings per share, excluding the income tax expense reduction, to net income and diluted earnings per share:

	Full Year
Dollars in millions, except per share amounts	2006		2005			Pct Chg
Net Income
As reported	$	1,606	$	1,026		57	%
Income Tax Expense Reduction		—		(118	)	—
Adjusted	$	1,606	$	908		77	%
Diluted EPS
As reported	$	5.91	$	3.85		54	%
Income Tax Expense Reduction		—		(0.44	)	—
Adjusted	$	5.91	$	3.41		73	%

Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two-thirds of the United States. A strong focus on quality and a strategically advantageous route structure enable the company to serve customers in

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critical and fast growing markets. It is a leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical-producing areas along the Gulf Coast. With competitive long-haul routes between all major West Coast ports and eastern gateways, and as the only railroad to serve all six major gateways to Mexico, Union Pacific has the premier rail franchise in North America.

Supplemental financial information is attached.

Additional information is available at our Web site: www.up.com. Contact for investors is Jennifer Hamann at 402-544-4227. Contact for media is Kathryn Blackwell at 402-544-3753 or 402-319-4288.

**********

This press release and related materials contain statements about the Corporation’s future that are not statements of historical fact, including statements regarding future operational and financial improvements and views regarding economic indicators and the Corporation’s outlook regarding future performance and financial results. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements also include, without limitation, information or statements regarding: expectations as to continued or increasing demand for rail transportation services; expectations regarding operational improvements, including the effectiveness of network management initiatives that have been or will be implemented to improve operations, customer service, and shareholder returns; expectations as to increased returns, cost savings, revenue growth, and earnings; expectations regarding fuel price and our ability to mitigate fuel costs; the time by which certain objectives will be achieved, including expected improvements in operations and implementation of network management initiatives; estimates of costs relating to environmental remediation and restoration; proposed new products and services; expectations that claims, lawsuits, environmental costs, commitments, contingent liabilities, labor negotiations or agreements, or other matters will not have a material adverse effect on our consolidated financial position, results of operations, or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to the Corporation’s and its subsidiaries’ business, financial, and operational results, and future economic performance; and statements of management’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Corporation’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement.

Important factors that could affect the Corporation’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to: whether the Corporation and its subsidiaries are fully successful in implementing their financial and operational initiatives, including those plans and management initiatives to improve system velocity and network performance or otherwise improve operations; the outcome of claims and litigation, environmental contamination, personal injuries, and occupational illnesses arising from hearing loss, repetitive motion and exposure to asbestos and diesel fumes; the impact of a rail accident involving the release of hazardous materials, which we are required to transport under federal law; legislative and regulatory developments, including possible enactment of initiatives to re-regulate the rail industry; changes in labor costs, labor stoppages, and the availability of qualified personnel required for our operations; the impact of ongoing track maintenance, upgrades, and restoration work being performed in the Southern Powder River Basin of

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Wyoming; natural events such as severe weather, fire, floods, hurricanes and earthquakes; changes in fuel prices or changes to our ability to recover fuel costs, including any changes resulting from regulatory or legislative activities; adverse economic conditions affecting customer demand and the industries and geographic areas that produce and consume the commodities we carry; industry competition, conditions, performance and consolidation; legislative, regulatory and legal developments involving taxation, including enactment of new federal or state income tax rates, revisions of controlling authority and the outcome of tax claims and litigation; changes in securities and capital markets; the effects of adverse general economic conditions, both within the United States and globally; any adverse economic or operational repercussions from terrorist activities and any governmental response thereto; and war or risk of war. More information regarding risk factors and other cautionary information are available in the Corporation’s Annual Report on Form 10-K for 2005, which was filed with the SEC on February 24, 2006. The Corporation updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).

Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made. The Corporation assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Corporation does update one or more forward-looking statements, no inference should be drawn that the Corporation will make additional updates with respect thereto or with respect to other forward-looking statements. References to our Web site are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.

UNION PACIFIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Periods Ended December 31

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Fourth Quarter								Full Year
	2006			2005			Pct Chg		2006			2005			Pct Chg
Operating Revenues	$	3,962		$	3,621		9		$	15,578		$	13,578		15
Operating Expenses
Salaries, Wages, and Employee Benefits		1,169			1,108		6			4,599			4,375		5
Fuel and Utilities		705			753		(6	)		3,012			2,562		18
Equipment and Other Rents		346			353		(2	)		1,455			1,402		4
Depreciation		315			300		5			1,237			1,175		5
Materials and Supplies		171			143		20			691			546		27
Purchased Services and Other		446			431		3			1,700			1,723		(1	)
Total Operating Expenses		3,152			3,088		2			12,694			11,783		8
Operating Income		810			533		52			2,884			1,795		61
Other Income - Net		57			54		6			118			145		(19	)
Interest Expense		(118	)		(120	)	(2	)		(477	)		(504	)	(5	)
Income Before Income Taxes		749			467		60			2,525			1,436		76
Income Tax Expense		(264	)		(171	)	54			(919	)		(410	)	U
Net Income	$	485		$	296		64		$	1,606		$	1,026		57
Basic Earnings Per Share	$	1.79		$	1.11		61		$	5.96		$	3.89		53
Diluted Earnings Per Share	$	1.78		$	1.10		62		$	5.91		$	3.85		54

January 25, 2007 (1)

UNION PACIFIC RAILROAD

REVENUE DETAIL

Periods Ended December 31

(Unaudited)

	Fourth Quarter						Full Year
	2006		2005		Pct Chg		2006		2005		Pct Chg
Commodity Revenue (000):
Agricultural	$	670,238	$	558,358	20		$	2,395,102	$	1,971,210	22
Automotive		358,898		351,572	2			1,438,339		1,273,188	13
Chemicals		519,970		475,338	9			2,097,689		1,848,378	13
Energy		757,481		629,418	20			2,952,792		2,577,551	15
Industrial Products		744,134		746,282	—			3,172,966		2,818,915	13
Intermodal		724,258		693,971	4			2,805,280		2,467,746	14
Total	$	3,774,979	$	3,454,939	9		$	14,862,168	$	12,956,988	15
Revenue Carloads:
Agricultural		237,222		227,456	4			922,970		882,861	5
Automotive		208,411		208,135	—			834,343		796,577	5
Chemicals		215,268		218,137	(1	)		895,855		911,789	(2	)
Energy		586,396		532,537	10			2,295,625		2,177,881	5
Industrial Products		326,608		368,183	(11	)		1,450,740		1,508,390	(4	)
Intermodal		866,113		864,969	—			3,452,618		3,265,939	6
Total		2,440,018		2,419,417	1			9,852,151		9,543,437	3
Average Revenue per Car:
Agricultural	$	2,825	$	2,455	15		$	2,595	$	2,233	16
Automotive		1,722		1,689	2			1,724		1,598	8
Chemicals		2,415		2,179	11			2,342		2,027	16
Energy		1,292		1,182	9			1,286		1,184	9
Industrial Products		2,278		2,027	12			2,187		1,869	17
Intermodal		836		802	4			813		756	8
Total	$	1,547	$	1,428	8		$	1,509	$	1,358	11

January 25, 2007 (2)

UNION PACIFIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of December 31, 2006 and 2005

(Dollars in Millions)

(Unaudited)

	December 31, 2006		December 31, 2005
Assets:
Cash and Cash Equivalents	$	827	$	773
Other Current Assets		1,584		1,552
Investments		877		806
Properties - Net		32,873		31,975
Other Assets		354		514
Total	$	36,515	$	35,620
Liabilities and Shareholders’ Equity:
Current Portion of Long Term Debt	$	780	$	656
Other Current Liabilities		2,759		2,728
Long Term Debt		6,000		6,760
Deferred Income Taxes		9,746		9,482
Other Long Term Liabilities		1,960		2,287
Common Shareholders’ Equity		15,270		13,707
Total	$	36,515	$	35,620

January 25, 2007 (3)

UNION PACIFIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year Ended December 31

(Dollars in Millions)

(Unaudited)

	2006			2005
Operating Activities:
Net Income	$	1,606		$	1,026
Depreciation		1,237			1,175
Deferred Income Taxes		235			320
Other - Net		(198	)		74
Cash Provided by Operating Activities		2,880			2,595
Investing Activities:
Capital Investments		(2,242	)		(2,169	)
Other - Net		200			122
Cash Used in Investing Activities		(2,042	)		(2,047	)
Financing Activities:
Dividends Paid		(322	)		(314	)
Debt Repaid		(657	)		(699	)
Other - Net		195			261
Cash Used in Financing Activities		(784	)		(752	)
Net Change in Cash and Cash Equivalents	$	54		$	(204	)

January 25, 2007 (4)

APPENDIX

UNION PACIFIC CORPORATION

OPERATING AND FINANCIAL STATISTICS

Periods Ended December 31

(Unaudited)

	Fourth Quarter								Full Year
	2006			2005			Pct Chg		2006			2005			Pct Chg
Operating Statistics:
Revenue Carloads (Thousands)		2,440			2,419		1			9,852			9,543		3
Revenue Ton-Miles (Billions)		140.8			136.3		3			565.2			548.8		3
Gross Ton-Miles (GTMs) (Billions)		267.4			262.1		2			1,072.5			1,043.9		3
Operating Margin		20.4	%		14.7	%	5.7	pt		18.5	%		13.2	%	5.3	pt
Operating Ratio		79.6	%		85.3	%	(5.7	) pt		81.5	%		86.8	%	(5.3	) pt
Average Employees		50,199			49,494		1			50,706			49,747		2
GTMs (Millions) per Average Employee		5.33			5.30		1			21.15			20.98		1
Average Fuel Price Per Gallon	$	1.94		$	2.08		(7	)	$	2.06		$	1.77		16
Fuel Consumed in Gallons (Millions)		340			340		—			1,372			1,353		1
Fuel Consumption Rate (Gal per 000 GTM)		1.27			1.30		(2	)		1.28			1.30		(2	)
AAR Reported Performance Measures:
Average Train Speed (Miles per Hour)		22.0			20.5		7			21.4			21.1		1
Average Terminal Dwell Time (Hours)		25.9			29.8		(13	)		27.2			28.7		(5	)
Average Rail Car Inventory (a)		313,991			326,486		(4	)		321,566			N/A		N/A
Financial Statistics:
Weighted Average Shares - Basic (Millions)		270.3			265.6		2			269.4			263.4		2
Weighted Average Shares - Diluted (Millions)		272.7			268.9		1			272.0			266.5		2
Effective Income Tax Rate		35.2	%		36.6	%	(1.4	) pt		36.4	%		28.6	%	7.8	pt
Debt to Capital (b)										30.7	%		35.1	%	(4.4	) pt
Lease Adjusted Debt to Capital (c)										40.3	%		43.6	%	(3.3	) pt
Return on Invested Capital (d)										8.2	%		6.4	%	1.8	pt
Free Cash Flow (Millions) (e)									$	516		$	234		F

(a) On October 1, 2005, the rail car inventory measurement was standardized for all reporting railroads. Rail car inventory for prior periods was not recalculated.

(b) Debt to capital is computed as follows: total debt divided by total debt plus equity.

(c) Lease adjusted debt to capital, a non-GAAP measure, is computed as follows: total debt plus net present value of operating leases divided by total debt plus equity plus net present value of operating leases. See Union Pacific web site under Investor Relations for a reconciliation to GAAP.

(d) Return on invested capital is a non-GAAP measure; however, we believe return on invested capital (ROIC) is important in evaluating the long-term efficiency and value of the Company’s capital investments. ROIC should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. See Union Pacific web site under Investor Relations for a reconciliation to GAAP.

(e) Free cash flow is a non-GAAP measure; however, we believe that it is important in evaluating our financial performance and measures our ability to generate cash without incurring additional external financings. See Union Pacific web site under Investor Relations for a reconciliation to GAAP.

January 25, 2007 (A-1)

UNION PACIFIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

By Quarter and Full Year 2006

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Quarter Ended												Year Ended December 31
	March 31			June 30			September 30			December 31
Operating Revenues	$	3,710		$	3,923		$	3,983		$	3,962		$	15,578
Operating Expenses
Salaries, Wages, and Employee Benefits		1,129			1,140			1,161			1,169			4,599
Fuel and Utilities		692			794			821			705			3,012
Equipment and Other Rents		367			371			371			346			1,455
Depreciation		303			308			311			315			1,237
Materials and Supplies		164			178			178			171			691
Purchased Services and Other		450			415			389			446			1,700
Total Operating Expenses		3,105			3,206			3,231			3,152			12,694
Operating Income		605			717			752			810			2,884
Other Income - Net		10			29			22			57			118
Interest Expense		(120	)		(120	)		(119	)		(118	)		(477	)
Income Before Income Taxes		495			626			655			749			2,525
Income Tax Expense		(184	)		(236	)		(235	)		(264	)		(919	)
Net Income	$	311		$	390		$	420		$	485		$	1,606
Basic Earnings Per Share	$	1.16		$	1.45		$	1.56		$	1.79		$	5.96
Diluted Earnings Per Share	$	1.15		$	1.44		$	1.54		$	1.78		$	5.91

January 25, 2007 (A-2)

UNION PACIFIC RAILROAD

REVENUE DETAIL

By Quarter and Full Year 2006

(Unaudited)

	Quarter Ended								Year Ended December 31
	March 31		June 30		September 30		December 31
Commodity Revenue (000):
Agricultural	$	562,589	$	565,743	$	596,532	$	670,238	$	2,395,102
Automotive		361,328		389,980		328,133		358,898		1,438,339
Chemicals		501,501		536,075		540,143		519,970		2,097,689
Energy		699,467		732,164		763,680		757,481		2,952,792
Industrial Products		774,670		823,701		830,461		744,134		3,172,966
Intermodal		643,621		694,302		743,099		724,258		2,805,280
Total	$	3,543,176	$	3,741,965	$	3,802,048	$	3,774,979	$	14,862,168
Revenue Carloads:
Agricultural		233,958		225,414		226,376		237,222		922,970
Automotive		209,890		224,739		191,303		208,411		834,343
Chemicals		217,726		234,598		228,263		215,268		895,855
Energy		550,165		575,150		583,914		586,396		2,295,625
Industrial Products		366,314		386,604		371,214		326,608		1,450,740
Intermodal		814,578		864,168		907,759		866,113		3,452,618
Total		2,392,631		2,510,673		2,508,829		2,440,018		9,852,151
Average Revenue per Car:
Agricultural	$	2,405	$	2,510	$	2,635	$	2,825	$	2,595
Automotive		1,722		1,735		1,715		1,722		1,724
Chemicals		2,303		2,285		2,366		2,415		2,342
Energy		1,271		1,273		1,308		1,292		1,286
Industrial Products		2,115		2,131		2,237		2,278		2,187
Intermodal		790		803		819		836		813
Total	$	1,481	$	1,490	$	1,515	$	1,547	$	1,509

January 25, 2007 (A-3)