Canadian Nat'l keeps trains rolling into first day of UTU strike

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MONTREAL, Feb. 10, 2007 ? CN?s freight network across Canada remained fluid today following what the company believes to be an illegal strike by the United Transportation Union (UTU) at 0001 hours this morning.

E. Hunter Harrison, president and chief executive officer of CN, said: ?We are running the railroad at similar levels prior to the commencement of the strike, which demonstrates our resolve and mettle. We are committed to providing the best possible service to our customers.

?We remain ready to negotiate with the UTU at any time to achieve a fair and equitable collective agreement, just as we have with all of CN?s other unions in Canada. We are particularly concerned about the effects this work stoppage may have on our striking employees as the union?s spokesperson, Rex Beatty, has informed the company that the general chairpersons have declined to pay for continuation of employee benefits during this labour disruption, as is standard practice in work stoppages. As well, since this is not a strike that is legally authorized by the UTU, CN understands that employees will not be receiving normal strike pay from the union,? said Harrison.

The UTU, represents 2,800 conductors and yard-service employees at CN in Canada. The strike is restricted to Canada, and CN?s other unionized employees remain at work.

CN and the UTU have agreed during the conductors? strike to maintain normal commuter rail operations on CN lines in Toronto and Montreal. Service in both cities continued today with no disruptions.

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.