Mr. Claude Mongeau reports

CN TARGETS C$2.7 BILLION IN 2015 CAPITAL INVESTMENTS TO RAISE NETWORK SAFETY AND EFFICIENCY AND GROW THE BUSINESS

Canadian National Railway Company has provided the details of its 2015 plan to invest $2.7-billion in rail infrastructure maintenance and improvements, as well as in new capacity, equipment and technology to raise network safety and efficiency, improve service, and support future growth.

Claude Mongeau, president and chief executive officer, said, "With the work season now well under way, CN is embarking on a large number of maintenance and construction projects to ensure we continue to run a safe railway, and play a continuing role as a true backbone of the economy."

CN is planning to spend approximately $1.4-billion on track infrastructure. This will include the replacement of rail, ties and other track materials, bridge improvements, as well as various branch line upgrades. Such investments allow CN to improve the network, and are part of a multiyear program aimed at maintaining a high level of safety and efficiency while helping CN's customers grow.

Within its track infrastructure spending, CN is allocating $100-million to upgrade its feeder network. This investment is part of the $500-million program announced earlier this year to upgrade branch lines that are experiencing rising volumes of traffic.

CN safety investments this year will include additional fault detection systems, such as wayside inspection system technology, hot wheel detectors, wheel impact load detectors, signalled sidings to detect broken rails, and new geometry testing and joint-bar inspection technology.

CN will also spend approximately $800-million in 2015 on growth and productivity initiatives, such as yard improvements, intermodal terminals, transload and distribution centres, and information technology.

CN's equipment capital expenditures in 2015 are targeted to reach approximately $500-million, allowing the company to tap growth opportunities and improve the quality of the fleet. As part of this initiative, CN expects to take delivery of 90 new high-horsepower locomotives, and will invest in new rolling stock and freight car refurbishments.

Mr. Mongeau concluded: "CN is investing in a safe, efficient railway that is building on a strong foundation, as well as building for the future in this the 20th anniversary year of our initial public offering of shares. We are proud of our achievements, and our record of investing significant capital in the business to ensure a sustainable enterprise for many years to come."

We seek Safe Harbor.