CN Opens Offices in Shanghai and Beijing to Capitalize on New Trade Opportunities.

MONTREAL -- CN (NYSE:CNI) (TSX:CNR) announced today the establishment of offices in Shanghai and Beijing to grow the railway's share of rising traffic flows between China and North America.

Heading the new Shanghai office is Paul Tonsager, who assumes the title of Managing Director - Asia & Chief Representative - China. Tonsager will also oversee the new Beijing office, staffed by a CN representative, and another company representative in Hong Kong.

James M. Foote, CN's executive vice-president, sales and marketing, said: "China's growing economy is fuelling strong demand for natural resources and commodities, many of which are located on CN's network. We are intent on identifying profitable opportunities for transporting bulk and merchandise commodities destined for China, and handling two-way trade in products transported in containers.

"By establishing a strong presence in China, CN will be better positioned to push and pull growing China-North America trade over its network in Canada and the United States via the important ports of Vancouver, Halifax, Montreal and New Orleans.

Tonsager said: "China's emergence as a global trading force also represents a big opportunity for the Canadian west coast ports that CN serves. We have a significant presence in Vancouver, and we believe the Port of Prince Rupert has great potential to become an important gateway for shipments coming from, and destined for, China because of its sailing time advantage between Asia and North America."

Tonsager has held a succession of increasingly responsible positions at CN, most recently as project director, truck diversion marketing and sales, and prior to that director, international business development. He began his railroad career in 1996 as a national account manager with the Illinois Central, which CN acquired in 1999. Tonsager also has extensive experience with the international steamship community. He has a Master of Business Administration from the University of Chicago and a Bachelor of Science degree from Miami University.

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties and that its results could differ materially from those expressed or implied in such statements. Reference should be made to CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, and the Annual Information Form filed with the Canadian securities regulators, for a summary of major risks.

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.

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