Audited financial results of Bombardier Inc. for the year and the three months ended January 31, 1996.

MONTREAL--(BUSINESS WIRE)--April 23, 1996--BOMBARDIER INC. (TSE,ME:BBD.A) For the year ended January 31, 1996, consolidated revenues for Bombardier Inc. amounted to $7.1 billion, compared with $5.9 billion at January 31, 1995.

Net income reached $308.8 million, or $0.92 per share, as against net income of $241.9 million, or $0.73 per share, for the preceding year.

The Corporation deemed it prudent to reflect the decline in value of the investment in share units of Eurotunnel by a write-down of $231.4 million, or $155.0 million after income taxes. This devaluation has reduced net income for the year to $153.8 million, or $0.45 per share. -0-

The highlights are as follows:

                                         Year ended January 31,
                                           1996          1995

Revenues (billion)                       $    7.1   $     5.9

Net income, before write-down (million)  $  308.8   $   241.9

Net income per common share, before
write-down (dollars)
     Basic                               $   0.92   $    0.73
     Fully diluted                       $   0.89   $    0.69
Net income, after write-down (million)   $  153.8   $   241.9

Net income per common share, after
write-down (dollars)
     Basic                               $   0.45   $    0.73
     Fully diluted                       $   0.45   $    0.69

Average number of common
shares outstanding (million)                333.0       330.3

-0-

Consolidated revenues for the fourth quarter of 1995-96 totalled $2.7 billion, compared with $2.3 billion for the quarter ended January 31, 1995. The final audit of the accounts of Waggonfabrik Talbot GmbH, acquired on April 3, 1995, having been completed, these accounts have been included in the fourth quarter results. The 17 percent increase in revenues for the quarter ended January 31, 1996, compared to the same period last year, is due in part to the consolidation of these accounts.

For the quarter, net income, before write-down of the investment in share units of Eurotunnel, reached $104.8 million, or $0.31 per share, as against net income of $77.1 million, or $0.23 per share, for the same quarter last year. After write-down, net loss stood at $50.2 million, or $0.16 per share. -0-

                                           Three months ended
                                                January 31,
                                            1996         1995

Revenues (billion)                       $    2.7     $   2.3

Net income, before write-down (million)  $  104.8     $  77.1

Net income per common share, before
write-down (dollars)
     Basic                               $    0.31    $   0.23
     Fully diluted                       $    0.29    $   0.21

Net income (net loss), after
 write-down (million)                    $   (50.2)   $   77.1

Net income (net loss) per common share, after
write-down (dollars)
     Basic                               $   (0.16)   $   0.23
     Fully diluted                       $   (0.15)   $   0.21

-0-

Commenting on the year's results, Chairman and Chief Executive Officer Laurent Beaudoin noted that "the Corporation has increased its consolidated revenues by 20 percent thanks to higher sales in all segment of activities. Moreover, all segments have contributed to the 28 percent increase in net income before devaluation. However, a weaker performance than expected at Learjet has impacted the contribution of aerospace to net income."

Revenues in the transportation equipment segment for the year ended January 31, 1996 have reached $1.6 billion compared with $1.3 billion, representing an increase of 23 percent, while income before income taxes totalled $100.3 million, compared with $66.1 million in 1994-95.

Revenues in the motorized consumer products industry segment rose substantially, going from $1.1 billion in 1994-95 to $1.6 billion, thus increasing by 45 percent. Income before income taxes went from $117.1 for the year ended January 31, 1995 to $174.4 million for the year just ended.

In the aerospace segment, revenues totalled $3.3 billion in 1995-96, compared with $3.0 billion in 1994-95, recording a 10 percent increase. Income before income taxes amounted to $150.0 million as against $141.4 million for last year. Profit margin declined due to the fact that Learjet and de Havilland have not yet reached a satisfactory performance level.

Revenues in the defence industry segment have remained stable at $458.9 million in fiscal 1995-96, from $429.7 million in 1994-95. The year closed on a loss before income taxes of $5.9 million, compared with a loss before income taxes of $1.3 million in 1994-95. The 1995-96 results mainly reflect the loss incurred by the Shorts SD-360 airliner conversion program to military aircraft for the U.S. National Guard.

The financial and real estate services revenues amounted to $220.0 million for the year ended January 31, 1996, as against $166.0 million last year, while income before income taxes went from $22.3 million for 1994-95 to $42.1 million in 1995-96.

Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the fields of transportation equipment, civil and military aerospace, motorized consumer products and services. The Montreal-based corporation operates plants in Canada, Mexico, the United States, Austria, Belgium, Finland, France, Germany and the United Kingdom, employing 40,000 people.

CONTACT: Bombardier Inc., Montreal

Michel Lord, 514/861-9481