Bombardier's French Subsidiary ANF-Industrie Receives Option Order for Double Deck Rail Vehicles.

SAINT-BRUNO, QUEBEC--(BUSINESS WIRE)--July 2, 1997--BOMBARDIER TRANSPORT (TSE;ME:BBD.A;ME,TSE:BBD.B) Bombardier subsidiary ANF-Industrie, of Crespin, France, and GEC Alsthom have been awarded an order by the Societe Nationale des Chemins de Fer de France (SNCF), for the manufacture and supply of 16 TER2N electric multiple units, a two- car double-deck trainset designed for regional passenger transport, which consist of a motorized unit and a trailer. The order, valued at some 425 million francs (C$100 million), represents the exercise of an option. ANF-Industrie's share is valued at 144 million francs (C$34 million).

ANF-Industrie and GEC Alsthom have been chosen in November 1995 for a partnership in the construction of the TER2N. The original contract was for the delivery of 76 multiple units, which included the option of 16 multiple units, for a total value of 2 billion francs (C$470 million). ANF-Industrie's share of the whole contract amounts to 734 million francs (C$173 million).

ANF-Industrie is responsible for the manufacture of the trailers and motorized bogies, while GEC Alsthom builds the motorized units and the traction equipment.

The first TER2N delivery is scheduled for September 1997 and the total order is expected to be completed by November 1999.

ANF-Industrie is part of Bombardier's Transportation Group, 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. Its other European units are BN Division (Belgium), Bombardier-Wien Schienenfahrzeuge (Austria), Bombardier Prorail (United Kingdom) and Waggonfabrik Talbot GmbH (Germany). The Group is the leading supplier of passenger railcars in North America, where its operations comprise the Mass Transit Division (Canada), the Transportation Systems Division (Canada), Bombardier Transit Corporation (USA) and Bombardier-Concarril, S.A de C.V.(Mexico).

Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the field of transportation equipment, aerospace, and motorized consumer products. It also provides services related to its core competencies. The Montreal-based Corporation operates plants in Canada, the United States, Mexico, Austria, Belgium, Finland, France, Germany and the United Kingdom, employing 41,000 people. Bombardier's revenues for its last fiscal year ended January 31, 1997 totalled 8 billion Canadian dollars. More than 85 percent of its revenues are generated in markets outside Canada.

CONTACT: Bombardier Inc. Transportation Group

Francine Durocher Monin, 514/441-3190

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