CP Canadian Pacific Kansas City Limited

A correction from source is being issued with respect to the release which was disseminated on January 27, 2009 at 17:46 ET. In the second paragraph, it should read "approximately C$463 million" instead of "approximately C$463,050,000 million" and "approximately C$511 million" instead of "C$510,825,000 million". The complete and corrected version follows.

Canadian Pacific Railway Limited (TSX: CP)(NYSE: CP) today announced that it has entered into an agreement with a syndicate of underwriters who have agreed to purchase 12,600,000 CP common shares at a price of C$36.75 per share for sale to the public, primarily in Canada and the United States. CP has also granted to the underwriters an option to purchase, on the same terms, up to a further 1,300,000 common shares. The option is exercisable, in whole or in part, up to 30 days after the closing, which is scheduled to occur on February 10, 2009.

The offering is expected to provide CP gross proceeds of approximately C$463 million (and, in the case of a full exercise of the underwriters' option, approximately C$511 million). The net proceeds of the offering may be used to reduce indebtedness, contribute to funding of capital projects and for general corporate purposes.

Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 900 communities where we operate. Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.

A preliminary prospectus containing important information relating to the common shares has been filed with securities commissions or similar authorities in all of the provinces and territories of Canada (the "Canadian Securities Commissions") and a registration statement relating to the common shares has been filed with the United States Securities and Exchange Commission (the "SEC"). The preliminary prospectus is still subject to completion or amendment and the registration statement has not yet become effective. There will not be any sale or any acceptance of an offer to buy the securities in Canada until a receipt for the final prospectus has been issued and the common shares may not be sold in the United States or to U.S. persons and offers to buy the common shares may not be accepted from persons in the United States or U.S. persons prior to the time that the registration statement becomes effective. Before you invest you should read the prospectus and the other documents CP has filed with the Canadian Securities Commissions and the SEC for more complete information about CP and the offering. You may obtain these documents for free by visiting SEDAR at www.sedar.com or the SEC's website at www.sec.gov. You may also obtain copies of these documents by calling CP's Investor Relations department at the telephone number listed above.

Contacts: Media Canadian Pacific Railway Limited Leslie Pidcock (403) 319-6878 Email: leslie_pidcock@cpr.ca Investment Community Canadian Pacific Railway Limited Janet Weiss, Assistant Vice-President Investor Relations (403) 319-3591 Email: investor@cpr.ca