176 Million-Dollar Order for Bombardier's Mexican Subsidiary.

SAINT-BRUNO, Quebec--(BUSINESS WIRE)--Nov. 26, 1996--BOMBARDIER TRANSPORT (TSE;ME BBD.A ) The Mexican subsidiary of Bombardier Inc., Bombardier-Concarril S.A. de C.V., has signed an agreement with Mexico City's transit authority, Sistema de Transporte Colectivo (STC), for the refurbishment of 28 subway trainsets of nine cars each, plus four spare cars, for a total of 256 cars.

The order is valued at 131.5 million U.S. dollars (176 million Canadian dollars).

The MP-68 trains will be refurbished by Bombardier-Concarril at its Sahagun plant, located some 70 kilometres from Mexico City in the province of Hidalgo. Deliveries are expected to begin in the fall of 1997 and will be spread over a 25-month period. Once reconditioned, the cars will go into service on Mexico City's busiest subway lines. "This agreement reinforces the strong relations Bombardier- Concarril has been building with Mexico City's transit authority," observed Jean-Yves Leblanc, President and Chief Operating Officer of Bombardier's Transportation Group. "We are proud of the STC's confidence in us and will spare no effort in fulfilling this order." Refurbishing the 256 cars will add approximately 20 years to their life cycle and increase their reliability and safety levels at the lowest possible cost.

Mr. Leblanc also made reference to another significant contract awarded to Bombardier-Concarril by the STC in December 1995. Worth 117 million U.S. dollars, the order was for the supply of 78 new AC (alternate current) propulsion vehicles which are currently in production at the Sahagun plant.

Bombardier-Concarril S.A. de C.V. is a member of the Bombardier Transportation Group, which is based in Saint-Bruno, Quebec. The Group is responsible for all of Bombardier's operations in the field of rail transportation equipment, offering a complete range of urban, suburban and intercity vehicles as well as turnkey rail transit systems worldwide. The leading supplier of passenger railcars in North America, it operates plants in La Pocatiere (Quebec), Thunder Bay and Kingston (Ontario), Barre (Vermont), Plattsburg and Auburn (New York), as well as in Sahagun, Mexico. Its European operations include manufacturing facilities in Austria, Belgium, France, Germany and the United Kingdom.

Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the fields of transportation equipment, civil and military aerospace, and motorized consumer products. Its products are sold on five continents with high concentration in North America and Europe. The Montreal-based corporation operates plants in Canada, the United States, Mexico, Austria, Belgium, Finland, France, Germany, and the United Kingdom, employing 40,000 people. Bombardier's business volume totals 7.1 billion Canadian dollars, and more than 85 percent of the Corporation's revenues are made in markets outside Canada.

CONTACT: Bombardier Inc. (Transportation Group)

Francine Durocher Monin, 514/441-3190

514/441-4885 (FAX)