CN Canadian conductors walk off the job at 0001 hours Feb. 10

CN says UTU strike illegal

MONTREAL, Feb. 10, 2007 — CN this morning put management personnel on trains and in switching yards to continue freight operations across Canada following a strike by the United Transportation Union (UTU).

CN is seeking to have the UTU's strike declared illegal after it has been informed that the certified bargaining agent of the UTU members employed at CN had not authorized the issuance of the notice.

The UTU, which represents 2,800 conductors and yard-service employees at CN in Canada, began its strike at 0001 hours this morning. The strike is restricted to Canada, and CN's other unionized employees remain at work.

E. Hunter Harrison, president and chief executive officer of CN, said: “CN's comprehensive strike contingency plan will assure freight service across our network in Canada during this unfortunate labour action by the UTU.

“We are ready to negotiate with the UTU at any time to achieve a fair and equitable collective agreement, just as we have with CN's other unions. But we have the resources – and the resolve – to run the railway with management personnel filling strikers' jobs for as long as it takes to reach an economically sound settlement with the UTU. This is my commitment to customers, shareholders and employees.”

CN and the UTU have agreed during the conductors' strike to maintain normal commuter rail operations on CN 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 northern Ontario, and Mackenzie Northern Railway in northern 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.