CN and Homburg Invest Inc. reach agreement on sale of Central Station Complex in Montreal

    CN to leaseback headquarters building, rail passenger facilities, in sale
    netting company C$355 million

    Homburg adds key Canadian asset to growth portfolio

    MONTREAL, Sept. 19 /CNW/ - CN (TSX: CNR)(NYSE:   CNI) and Homburg Invest
Inc. (TSX: HII.A & HII.B and AEX: HII) announced today they have reached an
agreement under which Homburg Invest will purchase the Central Station Complex
(CSC) in Montreal and CN will leaseback its corporate headquarters building
and Central Station railway passenger facilities.
    The transaction, subject to customary closing requirements and regulatory
approvals, including federal government approval of an agreement to protect
the heritage features of Central Station, will generate proceeds of
C$355 million for CN. The transaction is expected to close by yearend.
    Claude Mongeau, CN executive vice-president and chief financial officer,
said: "We are very pleased to have concluded this transaction with Homburg,
which has a solid reputation for managing and developing major urban
properties. With a new property manager in charge of the Central Station's
extensive retail/commercial and services facilities, the CSC's role as a major
downtown Montreal transportation and commercial hub can be enhanced. At the
same time our agreement with Homburg allows CN to monetize a key real estate
asset, generating significant value for its shareholders."
    Richard Homburg, chairman and chief executive officer of Homburg Invest,
said: "We are very excited about building a lasting relationship with CN as
our anchor tenant. The station is a landmark in downtown Montreal and we are
committed to protecting its heritage features. We also see an opportunity to
turn this property into a Montreal icon with the potential development of one
million square feet for the site. Homburg already has investment and
development projects of almost C$1 billion in the Montreal market and this
transaction reinforces our commitment to a marketplace that we consider highly
attractive. For our shareholders, the growth potential and prime location of
this property represent significant value."
    Under the agreement with Homburg Invest, CN will lease back its 17-storey
office headquarters building and Central Station railway passenger facilities
on a long-term basis. Central Station includes the Grand Hall, train platforms
and portions of the sub-track level.
    CN and Homburg structured the sale-and-leaseback transaction to reflect
the long-term presence of CN's corporate headquarters in Montreal and to
ensure continued operation of Central Station for use by VIA Rail Canada Inc.,
and l'Agence metropolitaine de transport, and AMTRAK.
    Brookfield Financial acted as the exclusive advisor to CN in the

    CN - Canadian National Railway Company and its operating railway
subsidiaries - 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
metropolitan areas 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. For more information on CN, visit the company's website at

    Homburg, with its head office in Halifax, N.S., owns and develops a
diversified portfolio of quality real estate, including office, retail,
industrial and residential properties throughout Canada, the United States and
Europe. The Company's properties total over 14.5 million square feet,
representing in excess of C$3 billion in total assets, prior to this
transaction with CN.

    For CN, this news release contains forward-looking statements. CN
cautions that, by their nature, forward-looking statements involve risk and
uncertainties, including the assumption that, while CN expects there may be
continued weakness in certain segments of the North American economy in the
near term, positive economic conditions in North America and globally will
continue, 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 2006 Annual Consolidated Financial Statements and
Notes thereto and Management's Discussion and Analysis (MD&A), as well as its
2007 quarterly consolidated financial statements and MD&A, for a summary of
major risks.

    For Homburg Invest Inc., this news release may contain statements that
are "forward looking" regarding expectations with respect to market
conditions, acquisitions, occupancy rates, capital requirements, sources of
funds, expense levels, operating performance and other matters. These
assumptions and statements are subject to various factors, unknown risks and
uncertainties, including general economic conditions, local market factors,
performance of other third parties, environmental concerns, and interest
rates, any of which may cause actual results to differ from the Company's
current expectations.
    Information and statements in this document, other than historical
information, should be considered forward-looking and reflect management's
current views of future events and financial performance that involve a number
of risks and uncertainties. Factors that could cause actual results to differ
materially include, but are not limited to, the following: general economic
conditions and developments within the real estate industry, competition and
the management of growth. The Toronto Stock Exchange has neither approved nor
disapproved of the information contained herein.
    %SEDAR: 00013330EF

For further information:

For further information: CN: Media: Mark Hallman, Director,
Communications, Media & Eastern Region, (905) 669-3384; Investment Community:
Robert Noorigian, Vice-President, Investor Relations, (514) 399-0052; Homburg:
Media & Investors: Richard Homburg, Chairman and CEO, (902) 468-3395

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