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<div><b>Page Content:</b> <h2 align=left><span>Seriously Flawed Survey with Potentially Skewed Results Does Not Reflect CP’s Strong First Quarter Earnings</span></h2>
<p align=left><b><span></span></b><span>Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today issued the following statement in response to an incomplete and misleading shareholder survey published by Brendan Wood:</span></p>
<blockquote style="margin-right:0px" dir=ltr>
<p align=left><span></span><span>“CP questions the validity of the findings of the incomplete shareholder survey released today by Brendan Wood.*<span>*</span></span></p>
<p align=left><span><span></span></span><span>We believe that this survey, and its potentially skewed results, does not portray a fair representation of the views of CP’s shareholder base.*<span>*</span></span></p>
<p align=left><span><span></span></span><span>Importantly, by Brendan Wood’s own admission, ‘These data do not yet include the response to your 1st Quarter earnings announcement.’<sup>1</sup>*<span>*</span></span></p>
<p align=left><span><span></span></span><span>For the first quarter of 2012, CP delivered earnings per share of $0.82, an increase of $0.62, or 310%, from the same period in 2011.<span>* </span>In spite of seasonality which makes Q1 the most difficult operating quarter, the Company broke records, saw an increase in revenues of $213 million, and improved operating ratio by 1,050 bps during the quarter.</span></p>
<p align=left><span></span><span>CP notes that the only vote that counts is at the May 17, 2012 annual meeting of shareholders.”</span></p></blockquote>
<p align=left><span></span><span>CP also noted that the Company’s strong earnings, which were disclosed after the completion of the Brendan Wood shareholder survey, were well-received by financial analysts<sup>2</sup>: </span></p>
<div align=left><span></span><span>"As the company has highlighted previously, the Q1 operating metrics showed impressive improvements over both last year and over the more normalized 2010. Indeed, car miles per day and terminal dwell were both Q1 records." (Cameron Doerksen of National Bank, April 20, 2012)</span></div></li>
<div align=left><span></span><span>"By almost all measures, CP reported an impressive quarter as network, business development, and cost management efforts produced strong top and bottom line results.” (Peter Nesvold of Jefferies, April 23, 2012)</span></div></li>
<div align=left><span></span><span>"We believe CP will produce materially improved results in 2012 and beyond, assuming success of the company’s OR improvement efforts and normal operating conditions. We believe the potential for material upside surprises is large through the operating improvement period. <span>*</span>Accordingly, we recommend BUYing CP for very strong EPS growth in the next 3-5 years and the potential for upside surprises along the way." (David Tyerman of Canaccord Genuity, April 23, 2012)</span></div></li>
<div align=left><span></span><span>"Our analysis of CP Rail’s operating metrics shows a degree of improvement that cannot be explained by a mild winter alone. Fluidity has been fully restored and to the extent that execution remains on track, ongoing investments in network infrastructure should enable growth at low incremental costs in coming quarters." (Fadi Chamoun of BMO Capital Markets, April 23, 2012)</span></div></li></ul>
<p align=left><i><sup><span>1 </span></sup></i><i><span>Email from Brendan Wood to Canadian Pacific, dated April 20, 2012</span></i><i><span>.<span>* </span></span></i></p>
<p align=left><i><sup><span>2 </span></sup></i><i><span>Permission to use quotes neither sought nor obtained.<span>* </span>[The views expressed and numbers cited by independent financial analysts are their own and are not necessarily endorsed by CP. The inclusion of such information in this release should not be viewed as indicating that CP has agreed with the contents and conclusions of any such analysts.]</span></i></p>
<p align=left><i><span></span></i><b><span>CP recommends that shareholders vote FOR the Company’s continued forward momentum that is being carried out by the right management team under the supervision of the right Board.</span></b><span><span>* </span>To do so, vote <b>FOR</b> the election of the director nominees proposed by CP on the <b>WHITE</b> universal proxy.<span>* </span>In addition, shareholders are encouraged to visit www.CPonTrack.com to access the Company’s Management Proxy Circular and for more information about CP, the CP management team and its value-generating Multi-Year Plan. </span></p>
<p align=left><span></span><span>If you have any questions about the information contained in this document or require assistance in completing your <b>WHITE</b> universal proxy, please contact our proxy solicitation agents: </span></p>
<p align=left><span lang=EN-CA>*</span></p>
<div align=left>
<table border=0 cellspacing=0 cellpadding=0 align=left>
<td valign=top width=281>
<p><span lang=EN-CA><b>Georgeson</b></span></p></td>
<td valign=top width=357>
<p><span lang=EN-CA><strong>Mackenzie Partners, Inc.</strong></span></p></td></tr>
<td valign=top width=281>
<p><span lang=EN-CA>TOLL FREE - 1-866-374-9187 or</span></p>
<p><span lang=EN-CA>International Toll Free Number (outside Canada and U.S.):<span>* </span>1-866-682-6148</span></p></td>
<td valign=top width=357>
<p><span lang=EN-CA>TOLL FREE 1-800-322-2885 or</span></p>
<p><span lang=EN-CA>(212) 929-5500 (Call Collect)</span></p></td></tr>
<td valign=top width=281>
<p><span lang=EN-CA>Email: askus@georgeson.com</span></p></td>
<td valign=top width=357>
<p><span lang=EN-CA>Email: proxy@mackenziepartners.com</span></p></td></tr></tbody></table></div>
<p align=left><span>*</span></p>
<p align=left><span>*</span></p>
<p align=left><b><span></span></b>*</p>
<p align=left><b><span></span></b>*</p>
<p align=left><b><span></span></b>*</p><span>
<h3 align=left><br>Note on Forward-Looking Information </h3>
<p align=left>This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited, to our operations, priorities and plans, anticipated financial performance, business prospects, planned capital expenditures, programs and strategies.<span>* </span>This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance.<span>* </span>Forward-looking information may contain statements with words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes.</span></p>
<p align=left><span></span><span>Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information.<span>* </span>Forward-looking information is not a guarantee of future performance.<span>* </span>By its nature, CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments, including long-term floating rate notes; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes.<span>* </span>The foregoing list of factors is not exhaustive.</span></p>
<p align=left><span></span><span>These and other factors are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States.<span>* </span>Reference should be made to “Management’s Discussion and Analysis” in CP’s annual and interim reports, Annual Information Form and Form 40-F.<span>* </span>Readers are cautioned not to place undue reliance on forward-looking information.<span>* </span>Forward-looking information is based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CP.<span>* </span>Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.</span></p>
<h3 align=left><span>About Canadian Pacific</span></h3>
<p align=left><span>Canadian Pacific (TSX:CP)(NYSE:CP) operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit </span><a href="http://www.cpontrack.com/"><span>www.CPonTrack.com</span></a><span> and see how Canadian Pacific is further driving shareholder value.</span></p>
<h3 align=left><span>Contacts:</span></h3>
<p align=left><b><span></span></b><span>Media <br></span><span>Ed Greenberg<br></span><span>Tel.:<span>* </span>612-849-4717<br></span><span>24/7 Media Pager: 855-242-3674<span>************ <br></span></span><span>email: </span><a href="mailto:Ed_greenberg@cpr.ca"><span>Ed_greenberg@cpr.ca</span></a><span> </span></p>
<p align=left><span>Investment Community<br></span><span>Janet Weiss<br></span><span>Tel.: 403-319-3591<br></span><span>email: </span><a href="mailto:investor@cpr.ca"><span>investor@cpr.ca</span></a><span></span></p>
<p align=left><span>Joele Frank, Wilkinson Brimmer Katcher <br>Joele Frank / Tim Lynch / Jed Repko <br></span><span>Tel.: 212-355-4449</span></p>
<p align=left><sup><span>*</span></sup></p></div>
<div><b>News Release Date:</b> 4/26/2012 12:25 PM</div>
<div><b>Location:</b> Calgary, Alberta</div>
<div><b>News Type:</b> Investors</div>
<div><b>Is Featured:</b> Yes</div>


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