Canadian Pacific Railway increases dividend, capital investment

February 14, 2001 The Board of Directors of Canadian Pacific Railway Limited declared an increase in CP's next quarterly dividend to twenty seven cents ($0.27) Canadian per share on the outstanding Common Shares, from twenty-four and three quarter cents (C$0.2475) per share. The increased dividend is payable on July 26, 2010, to holders of record at the close of business on June 25, 2010, and is an eligible dividend pursuant to subsection 89(14) of the Income Tax Act.

The Board also approved a
$70-million increase in capital spending in 2010. CP now plans to spend in the
range of $750 million to $800 million on capital programs in 2010.

"The improving
economy, our strong balance sheet and solid earnings and free cash flows have
enabled us to expand our capital programs to take advantage of growth and
productivity opportunities," said Kathryn McQuade, executive vice president and
chief financial officer. "CP’s strong franchise showed resilience through
the recession and this dividend increase continues our trend of dividend growth
aligned with earnings growth."