Valuation of Conrail based on Exhibit 7.

(A)
1997E 1998E
Total Gain in Operating Income $0 $188
Terminal Value
After tax gain in OI
Discount factor @14.5 0.873362445 0.762761961
Present Value of Change in PAT
Total PV of positive change in PAT
No. Of Conrail Acquisation Shares 90.5
Per Share PV
Conrail Valuation
Base Value 71
PV of positive change in PAT (per share)
Total
1999E 2000E
$396 $550
0.666167652 0.581805809