CALGARY, March 1 /PRNewswire-FirstCall/ -- The Board of Directors of Canadian Pacific Railway Limited (TSX/NYSE: CP) today declared an increase in CP's next quarterly dividend to twenty-two and one-half cents ($0.225) Canadian per share on the outstanding Common Shares, from eighteen and three-quarter cents ($0.1875) per share., an increase of 20 per cent. It is the fourth increase since July 2004, when CP's quarterly dividend was twelve and three-quarter cents ($0.1275) per share on the outstanding Common Shares. Altogether, CP's dividend has increased 76 per cent since July 2004. The $0.225 dividend is payable on April 30th, 2007, to holders of record at the close of business on March 30th, 2007 and is an eligible dividend pursuant to subsection 89(14) of the Income Tax Act. CP also announces that its Board of Directors has authorized the acquisition of up to 5.5 million Common shares of CP for cancellation in 2007, and if not completed in 2007, in 2008, through normal course issuer bid purchases. This represents approximately 3.5 per cent of its Common Shares outstanding at December 31, 2006. CP currently has in place a normal course issuer bid under which it is permitted to purchase up to 3.9 million Common Shares during the 12 month period ending June 5, 2007. CP has substantially completed the purchase of the shares permitted under this current authorization with the purchase of 3.4 million shares in 2006 and the purchase of 250,000 shares in 2007. Subject to regulatory approval, CP intends to file a notice to make a further normal course issuer bid to enable it to purchase up to 5.5 million shares during 2007. In Fiscal 2006, CP repurchased 5.0 million of its shares for cancellation. "Canadian Pacific's integrated operating plan and focus on execution excellence continue to drive meaningful improvement," said Mike Lambert, Executive Vice President and Chief Financial Officer. "The increased dividend and continuation of the share buyback program, reflects CP's commitment to create and deliver shareholder value." Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, and 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. Our combined ingenuity makes CPR a better place to work, rail a better way to ship, and North America a better place to live. Come and visit us at http://www.cpr.ca/ to see how we can put our ingenuity to work for you. Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games. DATASOURCE: Canadian Pacific Railway CONTACT: Media, Leslie Pidcock, Tel.: (403) 319-6878, email: ; Investment Community, Janet Weiss, Assistant Vice-President, Investor Relations, Tel.: (403) 319-3591, email:

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