UTU Members on CN's Former IC Properties Ratify New Labor Agreement.

Business Editors

CHICAGO--(BUSINESS WIRE)--July 15, 2003

CN (NYSE:CNI) (TSX:CNR) announced today the ratification of a new labor agreement by members of the United Transportation Union (UTU) who are employed as conductors and brakemen on the railroad's former Illinois Central

In contrast with traditional railroad mileage- and rule-based wage systems dating back to the steam locomotive era, this three-year agreement, effective Aug. 1, 2003, is based on a concept of hourly wage, job guarantees and more flexible work rules for 600 current UTU members.

E. Hunter Harrison, president and chief executive officer of CN, said: "I am gratified with this latest hourly-rated agreement with our train service employees on the IC. It will allow management to operate the railroad in the most efficient, customer-focused way, and provide employees increased pay, job security and a better balance between work and home lives. To date, CN has secured hourly-rated labor agreements in the U.S. covering more than 1,600 train and engine employees."

CN's former IC properties include the Illinois Central Railroad, running from Chicago to New Orleans, and the Chicago, Central & Pacific, which connects Chicago and Omaha, Neb., and Sioux City, Iowa.

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.