BOMBARDIER COMMITTED TO PASSENGER RAIL TRANSPORT IN THE U.S.; PETER STANGL HEADS BOMBARDIER TRANSIT CORPORATION.

NEW YORK--(BUSINESS WIRE)--June 13, 1995--Jean-Yves Leblanc, president of Bombardier Inc's Transportation Equipment Group-North America, today affirmed Bombardier's "full and determined commitment" to the improvement and expansion of mass transportation in the United States for the 21st century.

Representing North America's leading manufacturer of passenger rail transportation equipment at the American Public Transit Association's Rapid Transit Conference here on "Our Customers: Our Future," Leblanc emphasized Bombardier's faith in the future of mass transportation in the United States. "Both the public and the private sectors have to meet the demand for improved and expanded mass transportation. Let me assure you that Bombardier is accepting the challenge. We are making a corporate commitment of time, energy and resources to help improve and develop mass transportation in the United States."

PETER STANGL JOINS U.S. TEAM

Referring to Bombardier's ability to recently enlist Peter E. Stangl, former chairman of New York's Metropolitan Transportation Authority (MTA), to serve as president of Bombardier Transit Corporation, a U.S. subsidiary of Bombardier Inc., Leblanc explained that it was another clear confirmation of the company's commitment to the U.S. marketplace.

"To support our strong commitment to mass transit in the United States, we realized the need in our organization for a leader with an outstanding reputation in this country's mass transit field. We did not have to search long or hard to discover who would be the best person to have as president of Bombardier Transit Corporation. As such, Peter Stangl will be responsible for all of our U.S. marketing, governmental affairs and public relations activities in the transportation equipment field.

"Under Peter Stangl's chairmanship over the past four years, the MTA experienced a remarkable transformation. He literally changed the public's attitude toward mass transit in Greater New York, and the MTA has become a model for the rest of the nation. Through the "Fare Deal" program, subway ridership in 1994 increased by 8.5 percent; Long Island Rail Road and Metro-North ridership increased 5.4 percent. Even New York City Transit bus ridership, which had declined steadily for 20 years, increased by 1.3 percent."

IMPRESSIVE DELIVERY RECORD

To enhance his claim to help improve and expand mass transportation in the United States, Leblanc said that over the past two decades Bombardier has designed, manufactured and delivered more than 2,000 passenger rail cars to operating authorities in major metropolitan areas from coast to coast and to Amtrak. "Moreover," he said, "our on-time, on-budget delivery of these vehicles is unparalleled in this industry."

Bombardier has transportation equipment manufacturing plants in Plattsburgh and Auburn, New York and Barre, Vermont. The company does business with more than 1,400 U.S. vendors and suppliers in the rail equipment sector and diversified industries in 42 states.

Bombardier's rail equipment contracts in the United States go back to June 1976, when it supplied 36 gallery commuter cars to Chicago. Bombardier extended its American heritage experience of rail transportation with acquisitions of the prestigious Pullman Technology Corporation in 1986 and the passenger rail vehicle designs and assets of Budd/Transit America in 1987.

"Since 1976," Leblanc said, "Bombardier has entered into contracts in the United States worth over $3.4 billion."

CURRENT BACKLOG OF ORDERS

"Today," he added, "Our consolidated backlog of orders for the Transportation Equipment Group-North America totals approximately $1.2 billion, which includes contracts for more than 176 rail vehicles in the United States."

Bombardier recently received over $500 million worth of orders for passenger rail transportation equipment, systems and services from transit authorities in the United States, Canada and the Pacific Rim. Among them are two contracts calling for integrated transit systems. One is in Malaysia, where Bombardier is spearheading a major breakthrough with a large-scale turnkey project for Kuala Lumpur. Bombardier will be supplying 70 Mark II Advanced Rapid Transit vehicles. The other contract is in Florida and calls for the supply of nine two-car trainsets, together with systems engineering, for a UM III Monorail line in Jacksonville.

Also part of the current backlog are more than 75 bi-level Superliner II intercity train coaches for Amtrak.

STRONG PRESENCE IN THE NORTHEAST

Bombardier's Transportation Equipment Group-North America has served the Northeast from its Barre, Vermont plant since 1981, delivering rail vehicles to the Connecticut DOT, Massachusetts Bay Transportation Authority, Metro-North Railroad, New Jersey Transit, New York City Transit and Philadelphia's Southeastern Pennsylvania Transportation Authority. These vehicles include more than 470 push-pull commuter cars to several transit authorities.

Recent orders for the Greater New York area include a contract awarded in September 1994 by New York's Metro-North Railroad for the manufacture and supply of 34 push-pull commuter coaches, plus an option for 15 additional coaches. These cars will be produced at Bombardier's new Plattsburgh facility in upper New York State. Bombardier has also been selected by New Jersey Transit for the supply of 95 push-pull commuter coaches, which are being manufactured in its Vermont and Quebec facilities with deliveries expected to begin in 1996.

COMMITMENT TO HIGH SPEED RAIL

Bombardier and GEC Alsthom, a world leader in high speed rail, recently proposed the "American Flyer" high speed passenger train for service on Amtrak's Northeast Corridor. Combining the high speed technology of GEC Alsthom's TGV train and Bombardier's innovations in tilt technology and expertise in stainless steel carbody manufacturing, the American Flyer is designed to meet the requirement of speeds up to 150 mph on existing track. The American Flyer can cut travel time from Boston to New York to two hours, 45 minutes and from New York to Washington, D.C. to two hours, 11 minutes. In addition to speed, the American Flyer will provide comfort and amenities that surpass that of air travel.

Referring specifically to Amtrak's high speed rail project for the Washington to New York to Boston line, Mr. Leblanc emphasized the need for such service. "The time is now for high speed rail in America, especially in the heavily congested Northeast Corridor. Without it, authorities are estimating the need for an additional 55 flights a day in and out of already overcrowded airports in New York, Boston and Washington. That's not to mention the price to be paid in safety, pollution and energy consumption without an improved rail system."

STEPPING INTO THE TRANSIT BUS BUSINESS

Mr. Leblanc went on to explain that, to further enhance its commitment to mass transportation in the United States, Bombardier entered the transit bus business last November, through the acquisition of a 25 percent interest in the share capital of NovaBUS Corporation, a Quebec-based private company which is one of the major manufacturers of transit buses in North America NovaBUS is currently producing the proven Classic design city bus and developing new low-floor and alternative fuel models.

"The transit bus industry is going through a major restructuring in North America," said Leblanc, "and we perceive a real opportunity for our company in that field. In addition to our share purchase, we invested in a five-year debenture that is convertible into an additional 14 percent interest and we have taken an option to acquire the remaining 61 percent of the NovaBUS common shares during 1998."

Prior to Bombardier's investment, NovaBUS had purchased the transit bus assets of Transportation Manufacturing Company (TMC) of Roswell, New Mexico, a subsidiary of Phoenix-based MCII and a leading transit bus supplier to the United States market.

SIX EXPERTS AT APTA CONFERENCE

Bombardier's contribution to passenger rail transportation is clearly in evidence at the APTA Conference, where six of its experts are panelists. Conference participants are being invited to take a guided tour and ride on Bombardier's R-110B new technology subway cars presently being tested in revenue service by MTA New York City Transit.

Based in Montreal, Bombardier Inc. is involved in the fields of aerospace, transportation equipment and motorized consumer products. The company operates plants in nine countries and employs 37,000 people worldwide. Its 1994-95 revenues totalled (Cdn) $5.9 billion/(U.S.) $4.3 billion.

CONTACT: Alison Xenakis/Camy Vazifdar

KCSA Public Relations

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