CN Consolidates Equipment Maintenance Facilities.

MONTREAL--(BUSINESS WIRE)--April 23, 1996--CANADIAN NATIONAL RLWS (ME,TSE:CNR.IR)(NYSE:CNI) Canadian National Railway Company announced today that it will consolidate its eastern railcar maintenance facilities to Toronto. The consolidation is part of previously announced downsizing and will result in a reduction of 250 positions and save $19 million annually.

CN President & CEO, Paul M. Tellier said, "More reliable equipment and new practices in inspecting and repairing rail cars allow us to operate more efficiently while maintaining our high safety standards."

CN East currently performs heavy equipment repair in Halifax, Moncton, Montreal, Senneterre, Hamilton and Toronto. On average, the shops operate at about 35 percent of capacity. In all, 25 CN locations will be affected. Heavy equipment repairs will be consolidated in Toronto, while other locations will conduct on- site routine maintenance as required. Toronto was chosen because of its emergence as the operations hub of the rail industry in Eastern Canada. The density of train operations is higher in the Toronto area.

There will be a reduction of 175 positions in Moncton and 45 positions in Montreal, while the MacMillan Yard in Toronto will gain 142 positions. Smaller adjustments will occur at other locations. These changes will be implemented over several months and will be finalized in September.

CONTACT: Canadian National Railways

Alain Bergeron, 514/399-7210