CN completes construction of Griffith, Ind., rail connection

First of five major connections in EJ&E integration program

CHICAGO, Dec. 20 /CNW Telbec/ - CN (TSX: CNR)(NYSE: CNI) has completed construction of the first major rail connection built as part of the continuing integration of the Elgin, Joliet and Eastern Railway Company (EJ&E) that, when all connections are constructed, will enhance the fluidity of train movements along CN routes in the greater Chicago area.

The new $5-million connection at Griffith, Ind., creates an efficient, direct route for CN freight trains moving between Kirk Yard in Gary, Ind., and points farther east on the Company's rail network.

CN, which completed its purchase of the EJ&E on Jan. 31, 2009, is investing more than $100 million in infrastructure improvements to integrate the EJ&E into its other lines in Chicago.

The integration also includes building new rail connections at Mundelein, Ill., Bartlett, Ill., Joliet, Ill., and Matteson, Ill. Engineering or construction work is now underway on the balance of the connection projects.

Jim Vena, CN senior vice-president, Southern Region, said: "CN is pleased to have reached this milestone and finished the first major EJ&E connection project. This connection is a significant step toward our goal of fully utilizing the EJ&E and providing improved rail fluidity in Chicago."

The Griffith connection project, started in late 2009, was completed Nov. 19, 2010. Three trains per day operate over the new connection, which links CN's South Bend Subdivision with the Matteson Subdivision leading to Kirk Yard.

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 of 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 factors that could affect the above 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 maters, or any other forward-looking statement.

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, St. Louis, 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.

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