Canadian National Railway announces new share repurchase program, allowing company to buy up to 17 million, or 3.82% of common shares outstanding

MONTREAL , October 25, 2011 (press release) – CN (TSX:CNR.to - News) (NYSE:CNI - News) announced today that its Board of Directors has authorized a new normal-course-issuer bid to purchase, for cancellation, up to 17 million, or 3.82 per cent, of the common shares issued and outstanding of the Company on Oct. 14, 2011. Approximately 444.8 million CN common shares were issued and outstanding on that date.

CN recently completed its share repurchase program announced in January 2011, under which it repurchased 16.5 million common shares at a weighted-average price of C$70.55 per share, excluding brokerage fees.

The new repurchase program - starting on Oct. 28, 2011, and ending no later than Oct. 27, 2012 - will be conducted through the facilities of the Toronto and New York stock exchanges, or alternative trading systems, if eligible, and will conform to their regulations. Toronto Stock Exchange (TSX) rules will permit CN to purchase daily, through TSX facilities, a maximum of 226,744 common shares under the Company's new repurchase program. Purchases under the normal-course-issuer bid will be made by means of open market transactions or such other means as the TSX or a securities-regulatory authority may permit, including private agreements.

The price to be paid by CN for any common shares will be the market price at the time of acquisition, plus brokerage fees, or such other price as the TSX may permit.

CN's management and Board of Directors believe that the repurchase by the Company of its shares represents an appropriate use of its funds.

Luc Jobin, CN executive vice-president and chief financial officer, said: "With a solid balance sheet and continued strong cash flow generation, the Company believes it is well positioned to continue its policy of rewarding shareholders by returning additional cash through a new share buy-back program, while pursuing other business opportunities."

CN also announced today that its Board of Directors has approved a fourth-quarter 2011 dividend on the Company's common shares outstanding. A quarterly dividend of thirty-two and one-half cents (C$0.325) per common share will be paid on Dec. 30, 2011, to shareholders of record at the close of business on Dec. 9, 2011.

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