February 21, 2007 18:40 ET

CN recognizes need for back-to-work legislation to end UTU strike in Canada

MONTREAL, QUEBEC--(CCNMatthews - Feb. 21, 2007) - CN, confronted by intense internal divisions within the striking United Transportation Union (UTU) in Canada, said today it acknowledges the need for Canadian government legislation to end the labour dispute.

E. Hunter Harrison, president and chief executive officer, said: "Although CN's preference has always been to achieve new labour agreements through free collective bargaining without third-party intervention, we believe government legislation is warranted at this time given internal UTU divisions that have hampered the union's bargaining efforts.

"CN (TSX:CNR)(NYSE:CNI) believes the federal government must proceed expeditiously with legislation providing for a mediation/arbitration process to settle a new collective agreement between CN and the UTU. We believe Parliament should support such legislation to ensure its quick passage."

CN continues to offer freight service across its network in Canada with management personnel filling in for striking UTU members, and it remains in negotiations with the authorized UTU bargaining representatives with the assistance of a federal mediator.

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

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.

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.

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