CN to keep trains rolling during planned Canadian conductors' strike

MONTREAL, Feb. 7, 2007 — CN is activating its strike contingency plan to maintain freight operations across Canada after the United Transportation Union (UTU) notified the company yesterday that it plans to strike CN's Canadian rail operations at 0001 hours Feb. 10, 2007.

E. Hunter Harrison, president and chief executive officer of CN, said: “CN and the UTU remain in negotiations, and we believe there is time to reach a new collective agreement before the strike deadline.

“But let me be clear – we will continue freight operations across Canada during a UTU strike, with management personnel performing UTU-represented jobs, and provide the best possible service. This plan is essential to our customers and the Canadian economy.”

The UTU represents approximately 2,800 CN conductors and yard-service employees in Canada.

A UTU strike will not affect other unionized employees in Canada.

CN and the UTU have agreed, during a conductors' strike, to maintain normal commuter rail operations on CN rail lines in Toronto and Montreal.

Excluded from strike action are UTU members employed on CN's Northern Quebec Internal Short Line, Algoma Central Railway in Ontario, and Mackenzie Northern Railway in Alberta.

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties, and that its results could differ materially from those expressed or implied in such statements. Important factors that could cause such differences include, but are not limited to, industry competition, legislative and/or regulatory developments, compliance with environmental laws and regulations, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, the effects of adverse general economic and business conditions, inflation, currency fluctuations, changes in fuel prices, labour disruptions, environmental claims, investigations or proceedings, other types of claims and litigation, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, its Annual Information Form filed with the Canadian securities regulators, its 2005 Annual Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis (MD&A), as well as its 2006 quarterly consolidated financial statements and MD&A, for a summary of major risks.