CALGARY, Sept 30, 2008 /PRNewswire-FirstCall via COMTEX/ -- Canadian Pacific Railway Limited (TSX/NYSE: CP) announced today that it has received regulatory approval from the US Surface Transportation Board (STB) to acquire control of the Dakota, Minnesota & Eastern Railroad Corporation and its subsidiaries: Iowa, Chicago & Eastern Railroad and Cedar American Rail Holdings. 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.

"The DM&E is an excellent fit for Canadian Pacific making this a strategic end-to-end addition to our network," said Fred Green, President and Chief Executive Officer of CP. "This is also a positive development for CP, DM&E and IC&E customers. CP customers will have direct single line access to the Midwest US markets and the Kansas City gateway, which will improve fluidity to and from the Southwest US and Mexico. DM&E and IC&E customers will have access to single line haul opportunities to new markets and access to CP's car fleets."

CP's ability to provide single line service between DM&E and IC&E served origins and CP destinations will enhance rail service, while its commitment to make infrastructure investments across the DM&E and IC&E network will improve safety and fluidity.

"Together, we will build on the significant improvements the DM&E has made in operating efficiency and safety over the past several years and remain committed to our shareholders, our employees, our customers and the communities we serve," said Kathryn McQuade, CP's Executive Vice President and CFO.