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Train Addiction Help Line: 1.866.840.7777

The following news release was posted on the Union Pacific Website this week.  What it means and how it will affect us all remains to be sorted out and seen.  For us, we hail the agreement and say, "It's about time. We model railroaders have been providing free advertising and public relations for years."

Union Pacific, M.T.H. Electric Trains Settle Trademark Dispute

Omaha, Neb., November 8, 2006 ? M.T.H. Electric Trains and Union Pacific Railroad are pleased to announce that they have amicably settled the trademark infringement case that UP filed against M.T.H in Omaha, Nebraska federal court.  The settlement benefits both parties, as well the entire model railroad industry.  It allows Union Pacific to continue to protect its intellectual property, and authorizes M.T.H.?s use of Union Pacific?s trademarks and paint designs on model train products and accessories.  Union Pacific has also decided to change its trademark-licensing program so that model railroad manufacturers will no longer have to pay a royalty, and will enjoy a perpetual license to use Union Pacific trademarks and paint designs on model railroad products.

In reacting to the end of the yearlong legal battle, M.T.H. recognized the commitment of UP to make a change.  "UP deserves a lot of the credit here," Wolf stressed. "UP's willingness to reconsider its position with regard to model train manufacturers' use of its trademarks allowed a deal to be struck.  UP has long been a friend and a steward of the hobby and this new license reflects that."

Wolf  added that the case was a big drain on M.T.H.?s resources but worth the effort.  "For seventy years, Union Pacific and the other railroads have worked with our industry to develop and nurture the model-railroading hobby.  The UP license that had been in effect did not properly reflect that mutually beneficial and rewarding relationship."

Bob Turner, Senior Vice President Corporate Relations for Union Pacific, said, "Mike Wolf is to be commended for his commitment to the model railroad industry. His energy and passion helped us find a solution that will better reflect the positive relationship that Union Pacific and the model train industry have enjoyed for many years."

To help commemorate the new arrangement between UP and the model train industry, M.T.H. will release a yet-to-be determined Union Pacific-sanctioned commemorative model locomotive.

About Union Pacific

Union Pacific Corporation owns one of America?s leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific?s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada?s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America?s premier rail franchise.

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