CSX and The Carlyle Group Complete Conveyance of CSX Lines

Jacksonville, FL, and Washington, DC - CSX Corporation (NYSE: CSX) and The Carlyle Group, a global private equity firm, announced today that they have completed the conveyance of CSX Lines, LLC, from CSX to a venture formed with The Carlyle Group. CSX received $300 million, consisting of $240 million in cash and $60 million of securities issued by the venture.

As part of the transaction announced December 17, 2002, former CSX Lines President and CEO Charles G. (Chuck) Raymond and his management team will lead the Charlotte, N.C.-based ocean carrier, now named Horizon Lines, LLC. Raymond will also chair the board of directors of the company.

Michael J. Ward, CSX chairman and chief executive officer, said, “This is an excellent transaction for CSX, its employees and shareholders. The completion of this conveyance allows us to further concentrate the company’s efforts on our core-rail business while strengthening the balance sheet. At the same time, we are pleased to have a continuing interest in this well-managed company and expect it will continue to produce solid financial results.”

Carlyle Managing Director Greg Ledford said, “CSX Lines, which will be renamed Horizon Lines, is an excellent addition to Carlyle’s transportation portfolio. We look forward to working with Chuck Raymond and his team to grow the company and provide superior service to our customers.”

Credit Suisse First Boston Corporation and Wachtell, Lipton, Rosen & Katz advised CSX Corporation on the transaction.