CN signs voluntary mitigation agreement with Village of Ford Heights, Ill.

CN has reached a voluntary mitigation agreement (VMA) with the Village of Ford Heights, Ill., located approximately 26 miles south of downtown Chicago, regarding its acquisition of the Elgin, Joliet and Eastern Railway Company. With this agreement, CN has VMAs with 25 of the 33 communities along the EJ&E in Illinois and Indiana.

CN, which completed its purchase of the
EJ&E on Jan. 31, 2009, will provide Ford Heights funding for industrial and
economic development, as well as for communications, emergency response
training and recreational facilities.

Jim Vena, CN senior vice-president,
Southern Region, said: "CN is pleased to have reached this negotiated
settlement with Ford Heights. The bulk of the funding under this agreement is
earmarked to help the village identify and market industrial properties that
can be served by rail. We hope this economic development support will prove to
be mutually beneficial to the village and CN in the years ahead."

Ford Heights Mayor Charles R. Griffin
said: "We welcome the support of CN in our efforts to draw new business
and employment to the village. We believe ready access to CN’s North American
rail network, our proximity to major Chicago interstate highways and a suitable
supply of real estate will make Ford Heights attractive to industry."

CN is also working closely with
communities on the EJ&E that do not have agreements with CN to ensure
implementation of safety and environmental conditions in accordance with the
requirements of the Surface Transportation Board.