CN condemns false statements issued by former UTU union official

MONTREAL, Feb. 21, 2007 — CN said today it is permitting striking members of the United Transportation Union (UTU) in Canada to return to work if they choose to do so and condemned false statements about the corporation by Rex Beatty, who has been removed from office as general chairperson of the UTU.

E. Hunter Harrison, president and chief executive officer, said: “The UTU is still on strike against CN. CN's longstanding corporate policy permits strikers who wish to return to work during a labour dispute to resume active employment with the company. I want to stress that CN is neither encouraging nor soliciting striking UTU members to return to work.

“Mr. Beatty and others have blatantly misrepresented the facts. CN, contrary to his false claim, is not blocking the return to work of UTU strikers.”

As of noon today, approximately 340 UTU members have made themselves available for work in CN's Eastern Region. These employees are being called for assignments when necessary, and will be paid equivalent to the terms of the expired collective agreements.

Harrison said: “CN remains in negotiations with the official representatives of the certified bargaining agent for the UTU – not Mr. Beatty – to reach an agreement to end this strike.”

The UTU, which represents 2,800 conductors and yard-service employees at CN in Canada, launched its strike at 0001 hours Feb. 10.

CN continues to run the railway with management personnel performing the work of striking UTU members.

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

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.