An announcement will be made today by Mr. Green at 11:00 Mountain Time regarding the Employee Share Purchase Plan.

I have called all of you already and I am passing this information along as advance notification in the event you receive any related calls.

Since 2001, CP's Employee Share Purchase Plan (ESPP) has offered employees the opportunity to own a part of our company by purchasing shares.

The balance of 2009 will be extremely challenging as we continue to experience further volume declines. While Canadian Pacific is pursuing sustainable adjustments to our long term cost structure, the current headwinds requires CP to dig deeper with immediate cost reductions.

Among the initiatives to reduce our costs, the company's match to employee ESPP contributions will be suspended, effective March 30th, 2009.

This step is an extraordinary measure in response to a unique period and will save CP approximately $12 million annually.

This is just one of the steps that the Company is taking in response to the current economic conditions.

For more information on the ESPP employees may link to Rail City, call Solium directly at 1-877-380-7793, or visit the Solium website at www.solium.com.

Yours truly,

John Bairaktaris
Director, Labour Relations