Leading Proxy Advisory Firm Institutional Shareholder Services (ISS) Strongly Endorses All Seven Nominees for Management Change in CP Proxy Contest

Recommends Withholding from Six of Canadian Pacific's Current Directors

Recommends Canadian Pacific Shareholders Vote the BLUE Form of Proxy

NEW YORK, May 3, 2012 /CNW/ - Pershing Square Capital Management, L.P. ("Pershing Square") today announced that leading proxy advisory services firm Institutional Shareholder Services (ISS) issued a report strongly endorsing all seven Nominees for Management Change for election at Canadian Pacific Railway Limited's ("Canadian Pacific") (TSX: CP; NYSE: CP) upcoming annual general meeting of shareholders to be held on May 17th.

The report recommends that shareholders vote for all seven of the Nominees for Management Change.

The report also recommends that investors withhold votes from six of CP's incumbent directors.

ISS recommends that shareholders vote on Pershing Square's BLUE form of proxy.

Collectively, the ISS recommendations represent an unequivocal endorsement of Pershing Square's alternate slate of directors, the Nominees for Management Change.

"Today's ISS recommendation brings shareholders one big step closer to the change we need at Canadian Pacific. We thank ISS for adding its important voice to the overwhelming support for the Nominees for Management Change," said William A. Ackman, CEO, Pershing Square Capital Management. "We are confident that a revitalized Board and a new CEO will return Canadian Pacific to its rightful position as a leader among North American Class I railroads."

"Consistent with ISS's recommendation, we ask shareholders to vote for all seven of the Nominees for Management Change."

In the report, ISS states:

• "What shareholders appear to have witnessed over these directors' tenure, as a close examination of the evidence in this proxy contest makes plain, is an enduring failure of board leadership, and a bewildering lack of accountability for results."
• "Because the dissidents have demonstrated a compelling case that poor board oversight has allowed the company's performance to drift further and further below both its peers and its potential over at least half a decade, it seems clear that change on the board is needed."

Shareholders are reminded that they may still submit a BLUE proxy even if they have previously submitted a white proxy. A properly completed BLUE form of proxy or voting instruction form will automatically revoke any earlier form of proxy or voting instruction submitted by you in respect of the meeting.

Additional Information
To keep current with all further developments and for information about how to vote your shares and to obtain a copy of Pershing Square's proxy circular and other shareholder communications, please continue to visit http://www.CPRising.ca. If you are a shareholder and have not already done so, please vote your BLUE proxy or voting instruction form FOR all seven Nominees for Management Change, and WITHHOLD from all 15 incumbent directors or vote for up to nine incumbent management nominees. If you have any questions, need assistance in voting your BLUE proxy or voting instruction form or need a BLUE proxy or voting instruction form, please call Pershing Square's proxy solicitor in Canada, Kingsdale Shareholder Services Inc., at 1-866-851-3214 toll-free in North America, or at 1-416-867-2272 outside of North America (collect calls accepted), or Pershing Square's proxy solicitor in the United States, D.F. King & Co., Inc., at 1-800-659-5550 toll-free in North America, or at 1-212-269-5550 outside of North America (collect calls accepted). We also invite you to share your comments by going to the comment section of the CPRising website.

SOURCE Pershing Square Capital Management, L.P.

Jennifer Burner, [phone], [email protected], or Martha Durdin, [phone], [email protected]

http://www.CPRising.ca