CP Declares Quarterly Dividend

CALGARY — The Board of Directors of Canadian Pacific Railway declared an increase in CP’s next quarterly dividend to 30 cents Canadian per share on the outstanding Common Shares, from 27 cents per share.

The increased dividend is payable on July 25, 2011 to holders of record at the close of business onJune 24, 2011, and is an eligible dividend pursuant to subsection 89(14) of the Income Tax Act.

“With the growing demand in our bulk and energy franchises, we feel positive about the long-term fundamentals of our business,” statedKathryn McQuade, Executive Vice-President and Chief Financial Officer. “The Company believes that increasing the dividends as earnings grow provides a balanced approach to total shareholder return.”