Exhibit 99.1

                                          Contact:      Elisabeth J. Gabrynowicz
                                                                  (804) 782-1449
                                                               Kathleen A. Burns
                                                                  (904) 366-2949

                         CSX OPERATING NEW RAIL NETWORK
              Conrail properties integrated into 23,000-mile system

        RICHMOND,  Va., June 1, 1999 - More than two years of intensive planning
and unprecedented  testing come to fruition today as CSX Corporation (NYSE: CSX)
begins operating its share of Conrail.
        "This is  an historic  day," said  John W. Snow, chairman, president and
chief   executive officer.  "Today  our vision of  creating a  revitalized   and
competitive eastern rail system will begin to be realized."
        The "new" CSX Transportation Inc. (CSXT), the rail unit of CSX, will now
operate  about  4,400 more route  miles of track.  About  6,200  former  Conrail
employees join the CSXT ranks today.
        "The  integration   planning  process has  been the  most  extensive and
comprehensive   ever, with  two   primary  goals in  mind - safety and  customer
service,"   said  A. R. "Pete" Carpenter,  president and CEO of CSXT.  "CSXT and
Conrail  employees  have worked  hard to get us to this  point - but we all know
that   the real  work is  just  beginning.   Our job   now is to  implement  the
integration well."
        Over the last two  years,  CSXT has hired  more than  1,500  train  crew
members,  purchased  nearly  300 new  locomotives  and  invested  more than $500
million in capital improvements in preparation for the integration.

                                    - more -


                                      - 2 -

        CSXT's  expanded  rail  system  will  offer  broader  market  reach  for
shippers, single-line service to every major market in the eastern United States
and direct  rail access to more ports than any  railroad in the nation.  For the
first  time  in a  generation,  rail  competition  will be  reintroduced  to the
Northeastern  United  States.  The new  network is  expected to take more than a
million truckloads off the highways as improved service attracts more freight to
rail.
        CSX and Norfolk Southern Corporation  announced the joint acquisition of
Conrail in April 1997 and filed with the federal  Surface  Transportation  Board
(STB) in June of that year  their  joint  application  to acquire  and  allocate
Conrail's  predominantly  Northeastern routes. The STB voted unanimously on June
8, 1998, to approve the  transaction.  The  acquisition  has received  broad and
ongoing support from shippers, labor unions, public officials, safety and health
organizations and environmental groups.
        CSX Transportation and its 34,500 employees provide rail  transportation
and  distribution  services  over a 22,700 route mile network in 23 states,  the
District of Columbia and two Canadian provinces.  CSXT is a business unit of CSX
Corporation,  based in Richmond,  Va., an international  transportation  company
providing rail,  intermodal,  container-shipping and contract logistics services
worldwide.
                                       ###
                   CSX's Internet address: http://www.csx.com