Mr. Jonathan Abecassis reports

CN STATEMENT ON UP-NS STB FILING

Canadian National Railway Company believes the application filed this morning by Union Pacific and Norfolk Southern fails to demonstrate that the merger would enhance competition or generate significant public benefits that would require a merger. It falls well below both the 2001 and old merger rules set out by the Surface Transportation Board (STB).

Protecting competition is not optional, it is essential to keep costs down and the economy sound. The fact is that this merger would reduce rail transportation options for customers while creating a single entity that controls more than 40 per cent of the U.S. freight rail market. Without real railway competition, prices go up and consumers lose.

CN will be actively participating in the STB process and encourages all stakeholders to participate to ensure all voices are heard and that competition is enhanced.

About Canadian National Railway Company

CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year for its customers.