Canadian National Asks for Release From Conciliation Process.

MONTREAL--(BUSINESS WIRE)--June 24, 1998--(ME:CNR) (TSE:CNR) (NYSE:CNI) Canadian National today asked a federal conciliation  officer to recommend that the federal minister of labor release CN and the Canadian Auto Workers union from conciliation.

CN believes it has reached an impasse in negotiations with the union and that further progress in the conciliation process at this point is impossible.

If the conciliation officer recommends that the minister of labor release the parties, the minister will have up to 15 days to make a decision. Should he agree to release the parties, CN and the CAW would reach a legal lockout or strike position seven days after that announcement.

CN is confident it can negotiate a settlement with the CAW, which represents about 6,000 active shopcraft, clerical and contract employees, without a work disruption.

CN believes a strike or lockout deadline would focus the CAW on reaching a settlement with the Company.

CN and the CAW first exchanged proposals inSeptember 1997. The CAW requested the appointment of a conciliation officer in December of last year, and the officer has participated in negotiations since February 1998.

Unions representing more than 60 per cent of CN's unionized workforce in Canada have ratified new collective agreements.

Canadian National Railway Company serves all of Canada and the U.S. Midwest, including the ports of Vancouver, Montreal and Halifax, and the key cities of Toronto, Chicago, Detroit and Buffalo, with connections to all points in North America.

   CONTACT:  Canadian National Railway Company
              Mark Hallman, 416/217-6390