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Canadian Pacific Railroad Acquisition of DM&E and IC&ECANADIAN PACIFIC September 30, 2008 Mayor Roy Buol City of Dubuque 50 W. 13th St. Dubuque, IA 52001 Dear Mayor Buol: F J (Fred) Green President and Chief Executive Officer Suite 500 Gulf Canada Square 401 - 9th Avenue SW Calgary AB T2P 4Z4 / / ~/~j~ Tel 403-319-7555 Fax 403-205-9000 fred~reen@cpr.ca I am pleased to report that the US Surface Transportation Board (STB) has approved Canadian Pacific's (CP) application to acquire control of the Dakota, Minnesota & Eastern (DM&E) and the Iowa, Chicago & Eastern (IC&E) Railroads. The STB denied all requests for conditions other than those agreed to voluntarily by CP. The official effective date of the final decision is October 30, 2008. Between today and October 30, there is a mandatory 30-day administrative period whereby stakeholders can appeal the regulatory process and timelines followed as part of the STB approval process. CP's commitment to invest an additional $300 million in capital across the DM&E and IC&E networks will improve safety and fluidity. CP's acquisition of DM&E and IC&E will increase revenue, create jobs and boost local economic vitality for the communities through which we operate. At CP, we believe our success depends on more than our ability to understand our business and customers. We also appreciate the issues that matter to the communities in which we live and do business -issues such as safety, quality of life, supporting local initiatives and the environment. It is our belief, that over time, our experience as North America's safest railway will improve the safety throughout the entirety of the DM&E and IC&E networks. Sincerely, C7 ~~ Fred Green ~`~ ~ `~ C>' ~.. President & CEO ~ ~'' Canadian Pacific -~=~ ~' ,a c; "._ ~! y c.~ cx~ o -~ "~ , -~? W '+1 x~ -~ ~ `~