Canadian Pacific Railway Limited Declares Dividend and Announces Intention to Increase Share Repurchases



    CALGARY, March 1 /CNW/ - The Board of Directors of Canadian Pacific
Railway Limited (TSX/NYSE:   CP) today declared an increase in CP's next
quarterly dividend to twenty-two and one-half cents ($0.225) Canadian per
share on the outstanding Common Shares, from eighteen and three-quarter cents
($0.1875) per share., an increase of 20 per cent.
    It is the fourth increase since July 2004, when CP's quarterly dividend
was twelve and three-quarter cents ($0.1275) per share on the outstanding
Common Shares. Altogether, CP's dividend has increased 76 per cent since
July 2004.
    The $0.225 dividend is payable on April 30th, 2007, to holders of record
at the close of business on March 30th, 2007 and is an eligible dividend
pursuant to subsection 89(14) of the Income Tax Act.
    CP also announces that its Board of Directors has authorized the
acquisition of up to 5.5 million Common shares of CP for cancellation in 2007,
and if not completed in 2007, in 2008, through normal course issuer bid
purchases. This represents approximately 3.5 per cent of its Common Shares
outstanding at December 31, 2006.
    CP currently has in place a normal course issuer bid under which it is
permitted to purchase up to 3.9 million Common Shares during the 12 month
period ending June 5, 2007. CP has substantially completed the purchase of the
shares permitted under this current authorization with the purchase of
3.4 million shares in 2006 and the purchase of 250,000 shares in 2007. Subject
to regulatory approval, CP intends to file a notice to make a further normal
course issuer bid to enable it to purchase up to 5.5 million shares during
2007.
    In Fiscal 2006, CP repurchased 5.0 million of its shares for
cancellation.
    "Canadian Pacific's integrated operating plan and focus on execution
excellence continue to drive meaningful improvement," said Mike Lambert,
Executive Vice President and Chief Financial Officer. "The increased dividend
and continuation of the share buyback program, reflects CP's commitment to
create and deliver shareholder value."

    Canadian Pacific, through the ingenuity of its employees located across
Canada and in the United States, remains committed to being the safest, and
most fluid railway in North America. Our people are the key to delivering
innovative transportation solutions to our customers and to ensuring the safe
operation of our trains through the more than 900 communities where we
operate. Our combined ingenuity makes CPR a better place to work, rail a
better way to ship, and North America a better place to live. Come and visit
us at www.cpr.ca to see how we can put our ingenuity to work for you. Canadian
Pacific is proud to be the official rail freight services provider for the
Vancouver 2010 Olympic and Paralympic Winter Games.





For further information:

For further information: Media, Leslie Pidcock, Tel.: (403) 319-6878,
email: leslie_pidcock@cpr.ca; Investment Community, Janet Weiss, Assistant
Vice-President, Investor Relations, Tel.: (403) 319-3591, email:
investor@cpr.ca


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