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Kansas City Southern Announces Preferred Dividends

The executive committee of the board of directors of Kansas City Southern (KCS) (NYSE:KSU) has declared a cash dividend of $5.3125 per share on the outstanding 4.25% Redeemable Cumulative Convertible Perpetual Preferred Stock, Series C. The cash dividend will be payable February 15, 2008, to the holders of record at the close of business on February 1, 2008.

The executive committee of the board of directors also declared a cash dividend of $12.8125 per share on the outstanding 5.125% Cumulative Convertible Perpetual Preferred Stock, Series D. The cash dividend will be payable February 15, 2008, to the holders of record at the close of business on February 1, 2008.

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S. de R.L. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico.

Contacts:

Kansas City Southern
William H. Galligan, 816-983-1551
bgalligan@kcsouthern.com

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