CN maintains freight operations as UTU strike continues; CIRB to reconvene hearing on legality of UTU strike Feb. 19

MONTREAL, Feb. 13, 2007 — CN said today the Canada Industrial Relations Board (CIRB) will continue Feb. 19 its hearing on the company's application for a declaration that the United Transportation Union (UTU) launched an illegal strike against CN. The CIRB hearing began today.

CN, meanwhile, maintains freight service across Canada with management personnel performing the work of striking UTU members. The UTU, which represents 2,800 conductors and yard-service employees at CN in Canada, launched its strike at 0001 hours Feb. 10.

The parties involved in the CIRB hearing will present their positions to the board on Feb. 19.

CN on Feb. 10 requested the CIRB declare the strike illegal because it believes the UTU's strike notice was deficient and that the general chairmen who issued the notice on Feb. 6, 2007, did not have proper authority from the UTU.

CN's other unionized employees remain on the job in Canada and the United States.

CN and the UTU are maintaining 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.