Notice of Redemption to Holders of Canadian Pacific Limited Medium Term Notes, Series 1, 2 and 3

Press Release: Canadian Pacific Limited
September 17, 2001
CALGARY, AB -- Canadian Pacific Limited ("CPL") confirmed that it has issued formal notice of redemption to its holders of Medium Term Notes, Series 1, 2 and 3 (the "MTNs"). All three series of MTNs will be redeemed on September 26, 2001 in accordance with their terms. Accordingly, holders of Series 1, 5.85% MTNs due March 30, 2009 will receive the principal amount of such MTNs, plus all interest accrued and unpaid to but excluding September 26, 2001 plus $37.85 per $1,000 of principal. Holders of Series 2, 6.65% MTNs due June 1, 2005 will receive the principal amount of such MTNs, plus all interest accrued and unpaid to but excluding September 26, 2001 plus $68.49 per $1,000 of principal. Holders of Series 3, 6.90% MTNs due September 5, 2007 will receive the principal amount of such MTNs, plus all interest accrued and unpaid to but excluding September 26, 2001 plus $91.13 per $1,000 of principal.

These redemption amounts were calculated in accordance with the trust indenture as follows:

	                        Government of Canada Yield
	                         as at September 13, 2001                Spread
	    -----------------------------------------------------------------------
	    Series 1                     5.084                      15 basis points
	    Series 2                     4.463                      14 basis points
	    Series 3                     4.862                      24 basis points


Further information regarding the reorganization can be found in the Arrangement Circular at CPL's website www.cp.ca.

Calgary-based CPL is a diversified operating company active in energy, transportation and hotels. The Canadian Pacific group of companies includes PanCanadian, Fording, Canadian Pacific Railway, CP Ships and Fairmont Hotels & Resorts. The Common Shares of CPL are listed on the Toronto and New York stock exchanges. CPL's Preferred Shares are listed on The Toronto Stock Exchange.

Note: This new release contains forward-looking information. Actual results may differ materially and proposed plans of action could change. The risks, uncertainties and other factors that could influence actual results are described in CPL's Arrangement Circular.

SOURCE: Canadian Pacific Limited