Canadian Pacific Railway Limited (TSX/NYSE: CP) announced today that it has completed the transaction to acquire Dakota, Minnesota & Eastern Railroad Corporation and its subsidiaries (DM&E).  The agreement was previously announced on September 4, 2007.

The transaction is subject to review and approval by the U.S. Surface Transportation Board (STB), pending which the shares of DM&E have been placed into an independent voting trust.   The voting trust is required by US law so that CP does not exercise control over DM&E prior to approval of the transaction by the STB.  

CP announced that Mr. Richard Hamlin has been appointed as the trustee during the review period.  Mr. Hamlin is a private consultant  with over 30 years of experience serving major transportation companies.  He is a retired National Director for the Transportation Practice of KPMG LLP and has served as past Chairman of the American Institute of CPA's (AICPA) Transportation Committee and of its Railroad and Trucking Task Forces.  He has also served on the executive committee of numerous councils of the American Trucking Associations (ATA).

CP has developed a solid transition plan which focuses on safety and customer service that it will, subject to any requirements imposed by the STB, implement upon receipt of  STB approval of the acquisition.  The DM&E will become part of CP's overall U.S. network upon receipt of STB approval. The STB review process is expected to take less than a year. 

About Canadian Pacific

Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America.  Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 900 communities where we operate.  Our combined ingenuity makes CP a better place to work, rail a better way to ship, and North America a better place to live.  Come and visit us at www.cpr.ca to see how we can put our ingenuity to work for you.  Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.

Contacts:

Media                                  Investment Community

Leslie Pidcock                       Janet Weiss, Assistant Vice-President Investor Relations

Tel.: (403) 319-6878              Tel.: (403) 319-3591

e-mail: leslie_pidcock@cpr.ca   e-mail: investor@cpr.ca