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                               NEWS RELEASE

                   For Immediate Release December 13, 1978

The Board, stockholders, and employees of the Tuscola & Saginaw Bay Railway
are delighted to welcome Mr. John P.,Director of the Michigan
Department of Highways and Transportation today, to ride the Ca~o District
of the T&SB Ry.    We hope to express our appreciation for the outstanding
cooperation of Mr. Woodford, and the department in making available nearly
one million dollars for the upgrading of the Caro District line between
Vassar, Caro, and Coiling.   These funds are being used to rehabilitate the
line in order to Drovide important transportation service to the
prosperous Tuscola County Seat of Caro arid ultimately to the farmers,
businessmen, and finally to every citizen of Tuscola County, and the
Michigan Thumb.

Further the Department of Highways and Transportation has a contract with
T&SB By. to assist in upgrading and operating the entire 45 miles of track.
Without their aid T&SB Ry. would not have been able to begin the long task
of rebuilding and upgrading this rail transportation system in the Michigan
Thumb.  As a result of the Michigan Legislaturth and. Mr. Woodford's forward
thinking, and the hustle and innovativeness of all the employees of the
T&SB By. in the twelve months ending Sept. 30, 1978 we have increased our
loadings from 2473 carloads to 2735, an increase of 262 carloads, or 11%.

In the last two months of October and November carloads have increased from
533 caroloads to 641 carloads compared with these months last year, an in-
crease of 108 cars or 20%.   T&SB Ry. has made available a fleet of 54 covered
hopper cars for our customers, the largest supply of cars available in recent
years.  As a result of this car supply we have even been able to make available
cars for loading by off-line elevators in other parts of the Michigan Thumb,
a fleet we are proud of, and pleased to be able to provide on their behalf.

We believe that in comining years the planning for future transportation needs
of the citizens of Michigan by Mr. Woodford and his staff will continue to
improve available transportation in the state, keeping Michigan in a leader-
ship role as a planner and implementor of innovativeness and creative answers
to our transportation problems.

Charles J. Lapp