CN pact with City of Gary, Ind., marks milestone in EJ&E transaction mitigation

    CN agreements now cover all major Indiana communities affected by
    transaction and almost 50 per cent of population along EJ&E in Illinois
    and Indiana

    CHICAGO, IL, April 13 /CNW Telbec/ - CN (TSX: CNR)(NYSE:   CNI) announced
today a voluntary mitigation agreement with the City of Gary, Ind., addressing
the municipality's concerns with CN's acquisition of the principal lines of
the former Elgin, Joliet & Eastern Railway Company (EJ&E). CN completed the
acquisition on Jan. 31, 2009, and has begun running trains over the line.
    Under the agreement with Gary, CN will provide funding for quiet zones,
noise mitigation, emergency response training and economic development, among
other items.
    Gordon Trafton, CN senior vice-president, Strategic Acquisitions and
Integration, said: "Our agreement with the City of Gary marks a milestone in
CN's acquisition and integration of the EJ&E for three reasons. First, Gary --
the largest city in northwestern Indiana - is very important to CN, because
it's home to the EJ&E's Kirk Yard, a terminal that we intend to upgrade and
make into a pivotal freight car classification hub on CN's network.
    "Second, with the Gary VMA we have agreements with all of the principal
northwestern Indiana communities that will see increased train traffic as a
result of the EJ&E acquisition. And third, we now have mitigation agreements
with a total of 15 Illinois and Indiana communities that have close to 50 per
cent of the population living along the EJ&E in both states.
    "This achievement demonstrates that CN is doing what we said we would do
- we have continually said we planned to reach mutually satisfactory
mitigation agreements with cities, towns and villages that would be affected
by the transaction, and we're doing it. "
    CN is moving forward with the implementation of mitigation measures
contained in its voluntary agreements with other communities, as well as
mitigation measures required by the Surface Transportation Board.
    CN expects that full integration of the CN and EJ&E networks will be
accomplished within three years. As CN completes the integration and planned
infrastructure improvements, it is committed to communicate changes in a
timely manner to all 33 communities affected by the acquisition.
    More information on the transaction, including a map of the areas served
by the EJ&E and CN, is available on CN's website,

    Forward-Looking Statements

    This news release contains forward-looking statements. CN cautions that,
by their nature, forward-looking statements involve risk, uncertainties and
assumptions. Implicit in these statements, particularly in respect of
long-term growth opportunities, is the Company's assumption that such growth
opportunities are less affected by the current situation in the North American
and global economies. The Company cautions that its assumptions may not
materialize and that current economic conditions render such assumptions,
although reasonable at the time they were made, subject to greater
uncertainty. The current situation in financial markets is adding a
substantial amount of risk to the North American economy, which is already in
a recession, and to the global economy, which is significantly slowing down.
The Company cautions that its 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 - 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: Media: Patrick Waldron, Manager, Public
Affairs, (708) 332-4377; Investors: Robert Noorigian, Vice-President, Investor
Relations, (514) 399-0052

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