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CPR Wins DaimlerChrysler Gold Award

    TORONTO, Aug. 28 - The delivery of superior, time-sensitive
service has earned Canadian Pacific Railway (CPR) one of DaimlerChrysler
Corporation's coveted awards for excellence for the second consecutive year.

    CPR earned the DaimlerChrysler Corporation's 2000 Gold Award for
demonstrated quality in the day-to-day delivery of parts and finished
vehicles, the creation of value for the automaker and for delivering on its
commitment to a reduction in DaimlerChrysler's total costs.

    "The entire CPR team values our relationship with DaimlerChrysler," said
Lawre Allen, Vice-President of CPR's Intermodal and Automotive Group, who
accepted the award on behalf of railway employees this summer. CPR interline
partner Union Pacific was also recognized for outstanding overall logistics
performance.

    "We are all aware of the intense demands that this company must meet to
secure its well-earned position in the global automotive industry," said Mr.
Allen. "And we know only those companies that understand your business and the
role we play within it can hope to be part of your team. This award tells me
that CPR employees have made that commitment to you."

    CPR significantly improved its service delivery to DaimlerChrysler in
2000. Among the achievements were 95-per-cent on-time delivery of inbound
parts, a seven-per-cent improvement in the on-time delivery of finished
vehicles and a reduction in average transit times.

    CPR's service was vital to the successful start-up of DaimlerChrysler's
advanced distribution centre at Cottage Grove, Minnesota, a suburb of
Minneapolis-St. Paul. Also significant was the implementation of CPR
Expressway service moving inbound parts to DaimlerChrysler's Brampton, Ont.,
assembly plant. Expressway features expedited schedules, "easy-on, easy-off"
loading techniques and rapid turnaround times for truckers at terminals in
Detroit, Toronto and Montreal.

    In presenting the Gold Award, DaimlerChrysler director of logistics
Edward T. Sprock said, "The Canadian Pacific Railway was selected to receive
the DaimlerChrysler Gold Award based on exemplary performance on critical
criteria which includes cost reduction, quality improvement, innovation,
creativity and overall customer responsiveness."

    "The CPR has consistently demonstrated an eagerness to satisfy our
company's three critical success factors: speed, technology and consistency,"
said Mr. Sprock. "Built on an already strong relationship with CPR,
DaimlerChrysler anticipates future challenges to be met with a heightened
degree of success."

    Mr. Allen added, "We intend to deliver an even better product to
DaimlerChrysler in future. We value this award and the fact that we are the
exclusive rail service provider to the corporation's Bramton and Windsor
plants. Just as DaimlerChrysler sets high standards in its delivery of
superior vehicles, we set equally high standards in the delivery of our
product to the corporation. That's a winning combination."

    Calgary-based CPR is North America's first transcontinental railway and
the only transcontinental carrier with direct service to the U.S. Eastern
Seaboard. Its 14,000-mile network serves the principal centres of Canada, from
Montreal to Vancouver, as well as the U.S. Midwest and Northeast. Alliances
extend the CPR's market reach into Mexico and throughout North America.