CN completes intra-corporate merger of Elgin, Joliet and Eastern into Wisconsin Central subsidiary

    CN completes intra-corporate merger of Elgin, Joliet and Eastern into
                         Wisconsin Central subsidiary

PR Newswire

CHICAGO, Dec. 31, 2012

Merger, effective Jan. 1, 2013, expected to generate operational efficiencies,
improved service

CHICAGO, Dec. 31, 2012 /PRNewswire/ - CN (TSX: CNR) (NYSE: CNI) announced
today it will complete the merger of the Elgin, Joliet and Eastern Railway
Company (EJ&E) into its Wisconsin Central Ltd. (WC) subsidiary, effective Jan.
1, 2013. The merger of the two rail affiliates that connect in the Chicago
area will simplify CN's corporate structure and operations in the United
States.

Jim Vena, CN senior vice-president, CN Southern Region, said: "CN expects the
merger will lead to operational efficiencies and service improvements. These
merged railroads will continue all the existing operations of WC and EJ&E in
the Chicago Terminal with a unified workforce, which will permit better
management of crew staffing and more efficient and reliable rail service to
customers throughout the region."

The merger was authorized through a notice of exemption for transactions
within a corporate family filed with the U.S. Surface Transportation Board
(STB) on May 23, 2012, that became effective on June 22, 2012. Voluntary
implementing agreements with the unions representing the various crafts were
reached, allowing the company to complete the merger.

The merger will not affect or alter the STB's continuing oversight and
reserved jurisdiction over CN's 2009 acquisition of the EJ&E, the mitigation
conditions imposed by the STB, or the Voluntary Mitigation Agreements reached
by CN and numerous communities along the EJ&E arc.

CN - Canadian National Railway Company and its operating railway subsidiaries
- 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 metropolitan areas of
Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay,
Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to
all points in North America. For more information on CN, visit the company's
website at www.cn.ca.

Forward-Looking Statements

Certain information included in this news release constitutes "forward-looking
statements" within  the  meaning  of  the  United  States  Private  Securities 
Litigation Reform Act of 1995 and under Canadian securities laws. CN  cautions 
that,  by  their  nature,  these  forward-looking  statements  involve  risks, 
uncertainties and assumptions. The Company  cautions that its assumptions  may 
not materialize and that current economic conditions render such  assumptions, 
although  reasonable  at  the  time   they  were  made,  subject  to   greater 
uncertainty. Such  forward-looking statements  are  not guarantees  of  future 
performance and  involve  known and  unknown  risks, uncertainties  and  other 
factors which may cause  the actual results or  performance of the Company  or 
the rail industry to  be materially different from  the outlook or any  future 
results or performance implied by such statements.

Important risk  factors  that  could  affect  the  forward-looking  statements 
include, but are not limited to, the effects of general economic and  business 
conditions,  industry  competition,  inflation,  currency  and  interest  rate 
fluctuations,  changes   in  fuel   prices,  legislative   and/or   regulatory 
developments, compliance with environmental  laws and regulations, actions  by 
regulators, various events which  could disrupt operations, including  natural 
events such  as  severe  weather,  droughts,  floods  and  earthquakes,  labor 
negotiations  and   disruptions,   environmental  claims,   uncertainties   of 
investigations, proceedings or other types of claims and litigation, risks and
liabilities arising from derailments,  and other risks  detailed from time  to 
time in  reports filed  by CN  with securities  regulators in  Canada and  the 
United States.  Reference  should  be made  to  "Management's  Discussion  and 
Analysis" in CN's annual and interim reports, Annual Information Form and Form
40-F filed with  Canadian and  U.S. securities regulators,  available on  CN's 
website, for a summary of major risks.

CN assumes no  obligation to  update or revise  forward-looking statements  to 
reflect future events, changes in circumstances, or changes in beliefs, unless
required by applicable Canadian securities laws.  In the event CN does  update 
any forward-looking statement, no inference should  be made that CN will  make 
additional updates with  respect to  that statement, related  matters, or  any 
other forward-looking statement.

SOURCE CN

Contact:

Media
Patrick Waldron
Manager
Public Affairs
(708) 332-4377

Investment Community
Janet Drysdale
Vice-President
Investor Relations
(514) 399-0052
 
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