New CN website section sets the facts straight on UTU strike, negotiations

MONTREAL, Feb. 15, 2007 — CN today unveiled a new section of its website cnnegotiationsupdate.cn.ca to make clear its perspective on the issues at play in the current Canadian conductors' strike in Canada.

Kim Madigan, CN vice-president of labour relations, said: “This new site offers CN's view of the facts in this strike, dispels confusion about the company's contractual offers to the UTU, and establishes a forum through which we'll answer questions from our employees.”

A strike that CN believes is illegal was launched against the company's Canadian network at 0001 hours Feb. 10.

Earlier today the UTU general chairmen refused a comprehensive company offer from CN President and Chief Executive Officer E. Hunter Harrison to resume collective bargaining on Feb. 19 and for the immediate return to work by striking conductors and yard-service employees.

CN continues to offer freight service across its network in Canada with management personnel filling striking workers' jobs. CN's other unionized employees remain on the job in Canada and the United States.

The Canada Industrial Relations Board (CIRB) will continue on Feb. 19 its hearing on CN's application for a declaration that the UTU's strike is illegal. CN on Feb. 10 requested the CIRB declare the strike illegal because the railway believes the UTU's strike notice was deficient, and because the general chairmen who issued the strike notice on Feb. 6, 2007, did not have proper authorization from the UTU.

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.