26 March 2007
Canadian Pacific Railway Limited Implements an Increased Share Repurchase Program
Canadian Pacific Railway Limited announces that it intends to
complete the necessary filings today to receive the approval of the Toronto Stock Exchange to terminate its existing normal course
issuer bid due to expire on 5 Jun 2007 and implement a new normal course issuer bid to permit the purchase for
cancellation up to 4,975,000 of its outstanding common shares (or approximately 3.2% percent of the 155,534,263 common shares
outstanding at 15 Mar 2007) during the period commencing on 28 Mar 2007 and ending 27 Mar 2008,
provided that not more than 4,230,080 Common Shares may be purchased by CPR during the period commencing 28 Mar 2007 to
5 Jun 2007.
Under CPR's existing normal course issuer bid due to expire 5 Jun 2007, CPR purchased an aggregate of 3,685,982 common
shares during the period commencing on 6 Jun 2006 and ending 28 Feb 2007 at an average price of $57.17 per
share. All purchases under CPR's existing normal course issuer bid have ceased and the existing normal course issuer bid has been
terminated.
CPR's purpose and business reason for making purchases pursuant to the normal course issuer bid is that it believes that the market
price of its common shares could be such that the purchase of common shares may be an attractive and appropriate use of corporate funds
in light of potential benefits to remaining shareholders. The price CPR will pay for any common shares will be the market price at the
time of purchase or such other price as may be permitted by the Toronto Stock Exchange. Purchases may be made through the facilities of
the Toronto Stock Exchange and the New York Stock Exchange, and will be in accordance with the normal course issuer bid procedures
under Canadian securities laws and the policies of the Toronto Stock Exchange. Additionally, purchases under the new normal course
issuer bid will be made by means of open market transactions or such other means as may be permitted by the TSX (which may include
pre-arranged crosses).
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