CN offers new intermodal service between Eastern Québec, Ontario and Western Canada

MONTRÉAL, May 12, 2008 — CN (NYSE: CNI) (TSX: CNR) announced today a new intermodal service between the Eastern Québec region, Toronto and Western Canada.

The new service will appeal to forest products producers and manufacturers seeking cost-effective transportation to key markets in Ontario and Western Canada.

Stan Jablonski, CN senior vice-president, sales, said: “We believe there is strong interest in this intermodal option in the Québec City area and beyond, including Jonquière, Chicoutimi, Montmagny, La Pocatière and Rivière-du-Loup. We have the capacity to accommodate new traffic volumes between these centres, Toronto and the West.”

The new CN product will appeal to shippers of heavy products who can load 60,000 pounds in a 40-foot container, which has the equivalent capacity of a 53-foot truck trailer.

Jablonski said: “The service will reduce wear and tear on long-distance truck fleets and extend the environmental benefits of rail to a new group of shippers. Moving freight by rail for the long haul and truck for the short haul is the most environmentally responsible, efficient and economical transportation choice for shippers.”

CN will offer Québec City shippers daily service to Toronto, Winnipeg, Edmonton, Calgary and Vancouver.

For more information on CN's new product offering, please contact CN account manager Yves Guillemette at (418) 832-3135.