CN announces new share repurchase program, declares third-quarter 2008 dividend

    MONTREAL, July 21 /CNW Telbec/ - CN announced today that its Board of
Directors has authorized a normal course issuer bid to purchase for
cancellation up to 25 million, or 5.3 per cent, of the common shares
outstanding of the Company not held by its insiders on July 14, 2008.
Approximately 473.4 million CN common shares were issued and outstanding on
that date.
    The price CN will pay for any common shares will be the market price at
the time of acquisition, plus brokerage fees, or such other price as may be
permitted by the Toronto Stock Exchange.
    CN recently ended its share repurchases under the program announced in
July 2007, under which it repurchased 31 million common shares at a weighted
average price of C$51.22 per share.
    The new repurchase program - starting July 28, 2008, and ending no later
than July 20, 2009 - will be conducted through the facilities of the Toronto
and New York stock exchanges and will conform to their regulations. The
Toronto Stock Exchange (TSX) rules permit CN to purchase daily, through TSX
facilities, a maximum of approximately 381,000 common shares under the
company's repurchase program. Purchases under the normal course issuer bid
will be made by means of open market transactions or such other means as may
be permitted by the TSX or a securities regulatory authority.
    The new repurchase program is consistent with CN's policy to return
excess cash to its shareholders through ongoing increases in dividends and
share repurchase programs. With a strong balance sheet and sustained cash flow
generation, CN can undertake this program while pursuing other opportunities,
such as the proposed acquisition of the principal lines of the Elgin, Joliet
and Eastern Railway Company and related capital investments.
    CN also announced today that its Board of Directors has approved a
third-quarter 2008 dividend on the Company's common shares outstanding. A
quarterly dividend of twenty-three cents (C$0.23) per common share will be
paid on Sept. 30, 2008, to shareholders of record at the close of business on
Sept. 9, 2008.

    Forward-Looking Statements

    This news release contains forward-looking statements. CN cautions that,
by their nature, forward-looking statements involve risk, uncertainties and
assumptions. In addition to the other assumptions contained in this release,
the Company believes the U.S. economy is currently experiencing recessionary
conditions, but assumes that it will recover within the next six to nine
months, and that the global economy will grow at a moderate pace throughout
this period. The Company cautions that these assumptions may not materialize.
The Company's results could differ materially from those expressed or implied
in such forward-looking 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, labor 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
"Management's Discussion and Analysis" in CN's annual and interim reports and
Annual Information Form and Form 40-F filed with Canadian and U.S. securities
regulators, available on CN's website, for a summary of major risks.
    CN assumes no obligation to update or revise forward-looking statements
to reflect future events, changes in circumstances, or changes in beliefs,
unless required by applicable laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will make
additional updates with respect to that statement, related matters, or any
other forward-looking statement.

    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, and
Jackson, Miss., with connections to all points in North America. For more
information on CN, visit the company's website at

For further information:

For further information: Mark Hallman (Media), Director, Communications,
Media, CN, (905) 669-3384; Robert Noorigian (Investment Community),
Vice-President, Investor Relations, CN, (514) 399-0052

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