From a DM&E news release, verbatim.

November 11, 1996

SCHIEFFER NAMED PRESIDENT AND CEO OF DM&E RAILROAD

J.C. "Pete" McIntyre retires, remains Chairman of the Board

FOR IMMEDIATE RELEASE:

BROOKINGS, SD - The Dakota, Minnesota & Eastern Railroad said today that J.C. "Pete" McIntyre has retired as President and Chief Executive Officer of the 1,105-mile, Brookings-based railroad. Kevin V. Schieffer, who had been DM&E's legal counsel since 1993, was elected unanimously to succeed McIntyre.

The change, which took place at the Company's regular board meeting, November 7, was effective immediately. Schieffer was also elected to the Board of Directors. McIntyre was appointed Chairman of the Board.

McIntyre earlier this year informed the Company's Board of Directors of his intentions, and has since been an active member of the board committee designated to name his successor.

Schieffer has been in the private practice of law in Sioux Falls, SD, since 1993. He served as U.S. Attorney for South Dakota from 1991 to 1993, after returning to the state following a 10-year stint on the staff of U.S. Senator Larry Pressler.

"DM&E is a great Company," McIntyre said, "and it has been an honor to have had the opportunity to lead it through its first decade of existence. There have been many challenges and rewards along the way. I started in the railroad industry 43 years ago. It has been very good to me, but I made a decision earlier this year that now is the time for me to retire from the day-to-day activities of the railroad, which is a 24-hour business. I am confident that Kevin will do a great job in his new position. He has been a key player in this railroad as its attorney and has made invaluable contributions to its recent successes. He also played a significant role in the creation of the DM&E, dating back over 13 years."

Schieffer said he is looking forward to the challenge of running the railroad. "DM&E has accomplished a great deal in its first decade of existence," he said. "There are many challenges and opportunities ahead of us. Pete McIntyre is a great friend, and has set the standard as a quality leader. This is obviously a big challenge for me personally, but I take great comfort in the fact that I have the benefit of relying on Pete's invaluable experience and his friendship to make the transition a smooth one. He is a class act, and has taught me a great deal."

The Board of Directors paid special commendation to McIntyre for his tireless contributions to the railroad, and noted in particular his outstanding leadership through the early start-up years of the Company. McIntyre started his railroad career in 1953. He moved to the DM&E from the former Chicago and North Western Transportation Company at Chicago in 1986, and has been President and Chief Executive Officer of the DM&E since its start up that year.

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