Proprietary & Confidential TMC Engine Summit March 16, 2004 Steve Duley Vice President Purchasing

Proprietary & Confidential Serving North America DEDICATED EXPEDITED - TEAMS INTERMODAL ONE-WAY VAN BROKERAGE BULK SPECIALIZED > > >

Proprietary & Confidential Schneider National $2.9 billion in revenue in 2003 Operate 12,000 tractors, 15,200 drivers, and 45,000 trailers with 20,800 associates operating in 28 countries Purchase $1.5 billion in 3 rd party transportation from 1,300 carriers Pay 20 million invoices totaling $7 billion to 8,500 carriers Commitment to superior information and communications technology Truckload Intermodal Financial Services Spot Brokerage Glass Brokerage Tariff Based OptiModal TruckRail One-Way Van Dedicated Expedited Specialized Bulk Operating Services Application Services SFI INS Payment Services New Ventures Brokerage Logistics

Proprietary & Confidential Engine Review Post October 2002 – January 2004

Proprietary & Confidential Engine Evaluation Table – Last Update 1/19/04 ModelQty.Description Mfr Date Apprx. Miles Detroit Diesel 12.7L Series 601Preproduction Pilot – Repower11/01Repower 400, L Series 602Preproduction – Manufactured Pilot03/02275, L Series 605Preproduction08/02290, L Series 6048Production 2/200302/03255, L Series 601,000Production – 6-10/ /03 – 10/03 50,000 – 150,000 MBE40005Production05/03120,000 Caterpillar C12 Bridge507/02271,000 C15 Bridge507/02378,000 C15 Acert2Pilot – Manufactured04/03160,000 C15 Acert10Preproduction – Manufactured04/03138,000 C13 Acert2Pilot – Manufactured12/03 48,000 C13 Acert10Preproduction12/03 47,000 Cummins Kenworth12/02220,000

Proprietary & Confidential Post October 2002 Engine – Evaluation Results Purchase price over $5,000 per engine. MPG loss 3-5%. (10 years of progress – lost!) Oil drain interval same as post 1998 engines. One engine 250,000 miles was normal. Driver feedback – acceptable – good performance. Reliability first 250,000 miles (30% life) is ok. Some early failures of every significant EGR component i.e. VGT turbo, EGR valve, VPOD, sensors, pipes, EGR coolers. Concerned about operating costs/reliability as vehicle ages: t Warranty ends. t More parts to maintain. t High cost parts. t More complex troubleshooting. Significant improvements have occurred since 10/2002.

Proprietary & Confidential Engine Component Price Comparison ComponentPre Oct 2002>Oct 2002Labor HoursLabor $75/Hr Turbo$537$1,3301.1$83 Water Pump$114 $2403.4$255 Fuel Pump$101 $1100.8$60 Air Compressor$381 $4051.9$143 Camshaft$474 $4004.2$315 Injectors (6)$200 $2104.1$308 Exhaust Manifold $137 $1860.9$68 Sensors $800.5$30 Relative Humidity--- $800.4$30 Turbo Speed--- $1800.4$30 Barometer--- $150.4$30 Turbo Boost $51 $300.4$30 Intake Air Temp $49 $50.4$30 EGR Components Turbo Actuator$252 $1901.1$83 VPOD Assy.--- $2000.5$38 EGR Cooler--- $5603.0$225 EGR Valve--- $9701.5$113 Cold Pipe--- $4600.5$38 Hot Pipe--- $301.0$75 Sub-Total $3,296$6,731 Oxy Catalyst (CAT Bridge)---$1,4001.0$75

Proprietary & Confidential Government Regulations Increasing Engine Costs Post 2002 engine will increase operating costs by 2-3 cents/mile. Oct 2002 Purchase price$4,500 Fuel MPG Maintenance Fuel Costs/Gallon Total Operating $5,500 $6,000 ______ $11,500 Residual value reduction$4,000 Total Cost$20,000 NPV (6 8%)$15,000 Forecast Date8/2001 TechnologyEGR Total Cost of 02 Engines

Proprietary & Confidential Engine Review Engine

Proprietary & Confidential EGR with a Particulate Filter Approach T Intercooler EGR Cooler C Catalyzed Particulate Filter EGR Control Valve Air to Air Cooler Variable Geometry Turbocharger Particulate Filter to be Integrated into the Vehicle Exhaust System NOx Reduction with Increased EGR Rates

Proprietary & Confidential Diesel Particulate Filter Concerns Catalyzed Particulate Filter Particulate Filter to be Integrated into the Vehicle Exhaust System Initial and replacement price (precious metals?). Active regeneration process. Maintenance interval. Maintenance process. No heavy truck experience. Requires low sulfated ash oil (possible unique oil). Reduced life with LSD fuel. Overall operating cost.

Proprietary & Confidential Government Regulations Increasing Engine Costs Oct 20021/ * Purchase price$4,500$16,000$8,000 Fuel MPG Maintenance Fuel Costs/Gallon Total Operating $5,500 $6,000 ______ $11,500 $7,200 $9,000 $5,100 $21,300 $7,200 $6,000 $5,100 $18,300 Residual value reduction $4,000$5,000 Total Cost$20,000$42,300$31,300 NPV (6 8%)$15,000$35,000$26,000 Forecast Date8/20016/20021/2004 TechnologyEGRNOx TrapEGR/SCR Total Cost of 02 and 07 Engines * Revised 2/2004

Proprietary & Confidential SNI View of 2007 SCR should be approved. Must receive adequate representative field test engines by mid-year Cost estimates are much higher than EPAs estimate. t EPA should reforecast costs. t A government funded financial incentive is needed. Without a successful field test AND incentive. t Significant prebuy followed by a long interval no/slow buy. Cost/recovery challenge. t Cumulative cost impact – i.e. health care, litigation, insurance, hour of service changes, driver wages. t Raise prices – lose freight. t Transition – compete with old technology. Support Clean Air t Win-Win solution needed.

Proprietary & Confidential How Long Can Fleets Slow/No Buy? Major Components Service Life Without Rebuild Yr/1000 Miles Rebuild Target Age Yr/1000 Miles Rebuild Cost Rebuild Extended Life Yr/1000 Miles # Rebuilds Potential Cab8 / 1,0006 / 750$5,0004 / Major Elec Harnesses 10 / 1,2006 / 750$1,0008 / 1,000Unl. Htr/AC System6 / 7505 / 600$1,5004 / Engine8 / 1,0006 / 750$7,0004 / Frame8 / 1,0006 / 750$1,0004 / Transmission10 / 1,200None$3,2008 / 1, Steer Axle12 / 1,500None$1,0008 / 1, Rear Axles10 / 1,200None$3,5008 / 1,000Unl. Total Cost of Rebuild $15,000 Incremental Cost of 2007 Engine from pre-October 2002 $40,000 Incremental Cost of 2007 Engine from post-October 2002 $20,000 - $25,000