CANADIAN PACIFIC RAILWAY LOWERS EARNINGS PROJECTIONS

CANADIAN PACIFIC RAILWAY LOWERS EARNINGS PROJECTIONS

   Canadian Pacific Railway Ltd. has updated its fourth-quarter earnings target to 69 cents per share before non-recurring items, 9 cents per share lower than the year-earlier period.

   Higher interest expense resulting from the change in the company's capital structure combined with increased other non-operating charges will more than offset an improvement in the company’s operating earnings.

   For 2001, CPR is targeting basic earnings per share before non-recurring items of approximately $2.28, or 25-cents-per-share lower than 2000. On a reported basis, the current full year earnings per share target is approximately $2.55 for 2001, 81 cents lower than 2000.