Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Monday, August 25, 2008

CN and City of Joliet approve agreement on CN acquisition

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Comtex

CHICAGO, ILLINOIS, Aug 25, 2008 (MARKET WIRE via COMTEX) ----CN (TSX: CNR)(NYSE: CNI) said today that it has reached an agreement with the City of Joliet regarding CN's proposed acquisition of the major portion of the Elgin, Joliet & Eastern Railway Company (EJ&E). The agreement resolves the outstanding concerns the City of Joliet has related to quiet zones, operations, and communications surrounding the transaction.

The conditions of the negotiations are contingent upon approval of CN's proposal to acquire control of the EJ&E, which is being considered by the federal Surface Transportation Board (STB). As stated in STB's Draft Environmental Impact Statement, the Board has encouraged voluntary agreements between CN and communities.

"We believe this will be the first of many agreements between CN and the communities along the EJ&E line that are impacted by this transaction," stated Gordon T. Trafton Senior Vice-President, Southern Region. "We have consistently been willing to work with and address the concerns of communities across the region. We believe this agreement with Joliet is evidence that these concerns can be mitigated."

CN has been actively engaged in the environmental review process and will participate in the public hearings in August and September. CN also is actively working with other affected communities along the EJ&E line in an effort to reach voluntary mitigation agreements addressing reasonable environmental concerns associated with increased train traffic on the EJ&E.

Upon approval of the agreement and final approval of the acquisition, CN will fulfill its commitments to the City of Joliet contained in this agreement within a three-year period. These terms include significant investment in track improvements and roadway features along the route through Joliet.

"The purchase of the EJ&E will have far-reaching economic and transportation benefits to the Chicago region and the nation, and we are eager to continue our negotiations with other communities," Trafton said.

More information on the transaction, including a map of the areas served by the EJ&E and CN, is available by clicking on the EJ&E Acquisition icon on the "About CN" section of its website http://www.cn.ca/about/EJE/about_EJE/en_About.shtml

Forward-Looking Statements

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk, uncertainties and assumptions. In addition to the other assumptions contained in this release, the Company believes the U.S. economy is currently experiencing recessionary conditions, but assumes that it will recover within the next six to nine months, and that the global economy will grow at a moderate pace throughout this period. The Company cautions that these assumptions may not materialize. The Company's results could differ materially from those expressed or implied in such forward-looking statements. Important factors that could cause such differences include, but are not limited to, industry competition, legislative and/or regulatory developments, compliance with environmental laws and regulations, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, the effects of adverse general economic and business conditions, inflation, currency fluctuations, changes in fuel prices, labor disruptions, environmental claims, investigations or proceedings, other types of claims and litigation, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, its Annual Information Form filed with the Canadian securities regulators, and its 2007 Annual Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis (MD&A), as well as its 2008 quarterly consolidated financial statements and MD&A, for a summary of major risks.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

CN - Canadian National Railway Company and its operating railway subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points in North America.

www.cn.ca

 Contacts: CN
   Jim Kvedaras (Media) Senior Manager U.S. Public & Government Affairs (708) 332-3508 CN Robert Noorigian (Investors) Vice-President
   Investor Relations (514) 399-0052

SOURCE: CN

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