Canadian Pacific Railway Limited renews share repurchase program

[zardoz]

CALGARY, June 1 /CNW/ - Canadian Pacific Railway Limited (TSX/NYSE: CP)
announced today that it has made the necessary filings to renew its normal
course issuer bid to permit the purchase for cancellation up to 3,936,000 of
its outstanding common shares, or approximately 2.5 percent of the
approximately 158,321,252 common shares outstanding at May 31, 2006.

CPR currently has in place a normal course issuer bid due to expire June 5, 2006 pursuant to which CPR purchased an aggregate of 3,325,000 common shares during the 12 months preceding the date hereof. Share purchases may be made during the period beginning June 6, 2006 and ending June 5, 2007. The price CPR will pay for any common shares will be the market price at the time of purchase.

Purchases may be made through the facilities of the Toronto Stock Exchange and the New York Stock Exchange, and will be in accordance with the normal course issuer bid procedures under Canadian securities laws and the policies of the Toronto Stock Exchange.

"This will enable CPR to continue the repurchase of up to 5.5 million
common shares in 2006, as announced last February," said Brian Grassby, Acting Chief Financial Officer. "We believe the share repurchase program provides excellent value for our shareholders and reflects our confidence in the strong fundamentals of our business."

Canadian Pacific Railway is a transcontinental carrier operating in Canada and the U.S. Its 14,000-mile rail network serves the principal centres of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. CPR feeds directly into America's heartland from the East and West coasts.

Alliances with other carriers extend its market reach throughout the
U.S. and into Mexico. Canadian Pacific Logistics Solutions provides logistics
and supply chain expertise worldwide. Canadian Pacific Railway is marking its
125th anniversary in 2006.
For more information, visit CPR's website at www.cpr.ca.

http://www.newswire.ca/en/releases/archive/June2006/01/c2339.html