CN Names E. Hunter Harrison President and Chief Executive Officer.

Business Editors

MONTREAL--(BUSINESS WIRE)--Dec. 13, 2002

Canadian National (NYSE:CNI)(TSX:CNR)'s board of directors today announced the appointment of E. Hunter Harrison as CN's new president and chief executive officer, effective Jan. 1, 2003.

Harrison, 58, has served as CN's executive vice-president and chief operating officer since March 1998 and joined the company's board of directors on Dec. 6, 1999. Between 1993 and 1998 Harrison was president and chief executive officer of Illinois Central Corporation (IC) and the Illinois Central Railroad Company (ICRR), and a director of both IC and ICRR.

Harrison replaces Paul M. Tellier as CN's president and chief executive officer. Tellier is leaving CN after 10 years to become president and chief executive officer of Bombardier Inc.

CN Chairman David G. A. McLean said: "CN's board of directors is delighted to announce Hunter Harrison's appointment. Hunter is the best operating executive in the rail business, the man who designed and implemented the scheduled railroad at CN. Scheduled railroad practices - now being embraced by other major railroads - have made CN the service and efficiency leader of the North American rail industry and allowed it to grow its service-sensitive merchandise businesses at a healthy pace. The industry recognizes Hunter's leadership and innovation - Railway Age magazine in January named him 2002 Railroader of The Year.

"CN's directors have worked hard and successfully on succession planning in recent years. We have the right team in place; we were ready for Paul's decision to leave CN. Hunter is focused, articulate, intense, a commanding leader whose operations skills complement his business acumen. The board of directors is confident that Hunter's experience and drive, along with the depth of CN's management team, will assure the company remains at the forefront of corporate efficiency and profitability."

In his new position at CN, Harrison will be based in Montreal.

Harrison said: "I am deeply honored to have the opportunity to head the best railroad on the continent. As president and chief executive officer of CN, my priorities will remain a passion for service, efficiency and innovation to drive market share gains, sustained profitable growth and greater shareholder value."

Harrison joined the IC and ICRR in 1989 as vice-president and chief operating officer, and was subsequently named senior vice-president - transportation in 1991 and senior vice-president - operations in July 1992.

Harrison began his railroad career in 1964 as a carman oiler (labourer) with the Frisco (St. Louis-San Francisco) Railroad while attending school in Memphis. Following the merger of the Frisco and Burlington Northern, Harrison held a number of executive positions in transportation/operations.

McLean said: "It is with considerable regret we see Paul depart CN after so much he's done for the corporation. In his 10 years as CN's president and chief executive officer, Paul revolutionized the company, turning what once was a bloated, money-losing Crown corporation into a nimble, customer-focused and profitable shareholder-owned enterprise. He always considered himself as an agent of change, continually challenging conventional wisdom and demanding excellence from all who worked for him. All this - and a strong commitment to shareholders - drove an almost 400 per cent increase in shareholder value since CN's privatization in November 1995. The board of directors, on behalf of shareholders and employees, thanks Paul for a job well done and wishes him the best of luck in his new endeavor."

Canadian National Railway Company 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 cities 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.