Canadian Pacific Comments on Pershing Square Nominations

Canadian Pacific Railway Limited CP today noted the press release issued by Pershing Square Capital Management, L.P. announcing that it intends to nominate five individuals to stand for election at the Company's Annual Meeting of Shareholders on May 17, 2012. John E. Cleghorn, Chairman of the Board, said, "CP has an independent Board made up of directors with extensive, relevant experience in railroads and complementary industries including energy, natural resources, food and agriculture, as well as leaders from the fields of law, government, banking and finance. The Board was further strengthened with the recent addition of two seasoned railroad executives, Tony Ingram and Ed Harris, who together have over 80 years of rail experience." The Board has reviewed and verified the Company's Multi-Year Plan, which is underway and already producing results. CP's Board and management team are focused on maximizing shareholder value by driving volume growth, expanding network capacity to safely and efficiently support higher volumes and controlling costs. The Company believes that through an ongoing commitment to safely delivering excellent customer service and increasing asset velocity, efficiency and productivity, CP will achieve an annual operating ratio in the low 70s in the next three years, with further improvement thereafter. CP looks forward to updating shareholders on the Company's progress against its Multi-Year Plan to improve operating performance on CP's upcoming fourth quarter and full-year 2011 earnings call and in the coming weeks. Mr. Cleghorn continued, "We continue to stand by our offer to have Mr. Ackman join our Board so that a constructive board-level dialogue based on all the relevant facts and information can commence and so that we can work together for the benefit of all shareholders."