From a DM&E news release, verbatim.

September 13, 1996

DM&E MARKS 10th ANNIVERSARY

1,105-mile regional railroad has handled 700 million bushels of grain; annual revenues, tonnage more than double in 10 years

FOR IMMEDIATE RELEASE:

BROOKINGS, S.D. - The 1,105-mile Dakota, Minnesota & Eastern Railroad is celebrating its 10th anniversary since acquiring tracks of the former Chicago and North Western (now Union Pacific) in southern Minnesota and central South Dakota on September 5, 1986.

In a special report to employees, customers, and community leaders, DM&E said most of its main line between Winona, Minn. and Rapid City, S.D. has been rebuilt over the past 10 years at a cost of nearly $90 million. Meanwhile, the railroad's annual revenue and freight tonnage have doubled. Since start up, DM&E has handled nearly 500,000 carloads of freight, including 700 million bushels of grain.

DM&E President J.C. "Pete" McIntyre credits employees as the key to the railroad's success. DM&E currently has 335 employees, more than twice the number in September 1986. Of the 130 employees who joined the railroad initially, two-thirds are still with the company.

"DM&E's achievements are impressive," McIntyre said, "especially given the light density track and market conditions we inherited a decade ago." McIntyre noted DM&E's original goal to be "people-oriented and customer driven" remains unchanged. "I hope it is something that we never forget."

DM&E began with 37 locomotives and subsequently added 32 more. Most are named for various on-line communities. However, No. 6359 was named the "Mount Rushmore" in 1991 to celebrate the monument's 50th anniversary. Locomotive No. 550 is named the "Larry Pressler," to honor the U.S. Senator from South Dakota for his help in preserving track that later would become the DM&E.

When the DM&E began operations in 1986, much of the railroad's track had deteriorated and was good for only 10 m.p.h. Thanks to help from customers, community and political leaders DM&E has been able to secure various loans beginning in 19888 to rehabilitate its track. Since then, DM&E has installed 121 miles of welded rail and replaced 800,000 cross ties. When the work is completed, main line speeds will be 25 to 40 m.p.h. over much of theh railroad.

In addition to track improvements, the railroad is adding some 3,000 freight cars, including 1,225 new cars ordered since December 1995 at a cost of $64 million.

In May 1996, DM&E capped a 10-year effort when it purchased 201 miles of Union Pacific track between Colony, Wyo., Rapid City, S.D. and Crawford, Neb., thereby preserving rail service betweeen the Black Hills region and Nebraska. As a result of the new line and related growth, the railroad added more than 50 employees in 1996.

To help celebrate the anniversary, DM&E is hosting picnics and related weekend events for employees near Waseca, Minn. and Pierre, S.D., along with special train rides for employees.

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