IBM has signed a five-year renewal with Canadian Pacific (TSX/NYSE: CP) to provide strategic outsourcing services. This current infrastructure agreement includes mainframe, database, architecture and project management services.

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IBM will continue to operate the information technology infrastructure for the Calgary, Alberta-based railway. This renewal provides CP with effective cost management while improving services to customers.

"With the current economic situation, there is a growing need to build smarter transportation systems around the world," said Saad Toma, general manager, Global Technology Services, IBM Canada. "IBM will continue helping Canadian Pacific optimize technology to reduce operational costs and to improve fluidity of rail shipments."

The new contract, signed on February 18, 2009, is an extension of the original agreement from 2003. The renewal demonstrates a commitment by both organizations to service excellence and a long-term partnership.

About Canadian Pacific

Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 900 communities where we operate. Come and visit us at www.cpr.ca to see how we can put our ingenuity to work for you. Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.

About IBM

IBM is building smart transportation systems around the world to help cities manage traffic congestion, improve urban environmental conditions and increase economic competitiveness. IBM is well positioned to win these projects as they demand a unique set of products, skills and services. IBM researchers and consultants have already built smart traffic and transportation systems in Stockholm, Brisbane, Singapore, Dublin, London and other cities around the world (www.ibm.com/think). For more information on IBM Services, visit www.ibm.com/services.

  Media Contacts:
  Mike Lovecchio
  Canadian Pacific Media Relations
  778 772-9636
  24/7 Media Pager: 416 814-0948
  mike_lovecchio@cpr.ca

  Mike Boden
  IBM Media Relations
  416-478-7117
  mboden@ca.ibm.com

  Jenna Gable
  IBM Media Relations
  917-472-3512
  gablej@us.ibm.com

First Call Analyst:
FCMN Contact: gablej@us.ibm.com

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SOURCE: IBM