CN to resume rail operations and lift embargo on Toronto-Montreal main line following end of illegal blockade

MONTREAL, June 30, 2007 — CN (TSX: CNR)(NYSE: CNI) expects to resume operations and cancel a traffic embargo on its Toronto-Montreal main line this morning after protesters ended an illegal occupation of its tracks near the eastern Ontario town of Marysville. 

CN's track maintenance workers and CN Police will inspect the rail infrastructure closely to ensure a safe start-up of operations for employees and customers.

CN halted train service and embargoed traffic on the line early on June 29 as a result of the blockade. CN customers can expect some delays in the delivery of their shipments.

CN's Toronto-Montreal corridor is the busiest on its system, seeing an average of 25 freight trains and 22 VIA Rail trains daily.

About CN

CN – Canadian National Railway Company – spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company's website at www.cn.ca.

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties, including the assumption that, while CN expects a moderate slowdown in the North American economy in the near term, positive economic conditions in North America and globally will continue, 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, and its 2006 Annual Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis (MD&A), for a summary of major risks.