KCS Announces Mancera Litigation Result

KANSAS CITY, Mo.--(Business Wire)--
On May 29, 2009, Kansas City Southern (KCS) (NYSE:KSU) was notified by its
outside legal counsel of the final decision of the Mancera Ernst & Young, S.C.
("Mancera") lawsuit described in its previously filed financial statements, as
well as in the previously filed financial statements of its wholly-owned
subsidiary, Kansas City Southern de México, S.A. de C.V. ("KCSM"), which is the
defendant in the case.

The lawsuit involved a dispute between KCSM and Mancera concerning the fees
payable by KCSM for Mancera's work on KCSM's value added tax ("VAT") dispute
with the Mexican government, which was settled on September 12, 2005. Although
KCSM believes it had strong arguments for its position, KCSM was notified on May
29, 2009, that in a session held on May 28, 2009, the magistrates of the Twelfth
Civil Federal Court of Appeals in Mexico decided by majority vote to deny KCSM's
most recent appeal. The court has not issued its written opinion.

Though KCSM's specific payment obligations resulting from the decision have not
been determined, KCS estimates that under the decision, KCSM's obligation to
Mancera on the principal claim will be approximately $8 million. KCSM previously
made a good faith payment to the Mexico courts of approximately $3 million in
December 2007. As a result of this decision, KCSM will be obligated to pay
Mancera an additional $5 million on the principal claim in approximately four to
six months. KCSM has exhausted its remedies with respect to the principal claim.
Any applicable interest will be determined in a separate proceeding, which is
anticipated to be decided in approximately twelve to sixteen months. Including a
reserve for estimated interest potentially accruing from the settlement, KCS
(and KCSM in its stand-alone financial statements) will recognize pre-tax
expense of approximately $7 million, including approximately $4 million of
principal and approximately $3 million of interest, in the second quarter of
2009 related to this court decision.

Headquartered in Kansas City, MO, Kansas City Southern 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.A. 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. Kansas City Southern's 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., Mexico and
Canada.

This press release may include statements concerning potential future events
involving KCS and its subsidiaries, which could materially differ from the
events that actually occur. The differences could be caused by a number of
factors including those factors identified in the "Risk Factors" and the
"Cautionary Information" sections of KCS' Form 10-K for the most recently ended
fiscal year, filed by KCS with the Securities and Exchange Commission (SEC)
(Commission file no. 1-04717). KCS will not update any forward-looking
statements in this press release to reflect future events or developments.

Kansas City Southern
Ginger Adamiak, 816-983-1501
gadamiak@kcsouthern.com

Copyright Business Wire 2009