Bombardier CRJ700 Series Aircraft Makes Public Debut.

MONTREAL--(BUSINESS WIRE)--May 28, 1999--

First new-generation 70-passenger airliner extends CRJ 

program success

The first new-generation 70-passenger regional jet made its public debut here today, just one day after its first flight. The CRJ700 Series airliner has already attracted 96 firm orders from six airlines, options on an additional 140 aircraft and -- following certification -- will enter commercial service in the first quarter of the year 2001.

The aircraft, painted in a contemporary graphic style, was presented to an appreciative audience of more than 750 customers, partners, employees and government and media representatives. Participating in the ceremony were the Honorable John Manley, Minister of Industry for the Government of Canada; Bernard Landry, Deputy Premier and Minister of State for the Economy and Finance for the Government of Quebec; Robert Brown, president and chief executive officer of Bombardier Inc.(TSE:BBD.A.)(ME:BBD.A.)(TSE:BBD.B.) (ME:BBD.B.); Michael Graff, president and chief operating officer, Bombardier Aerospace and Robert Gillespie, president, Bombardier Aerospace, Regional Aircraft.

The new aircraft is a larger version of Bombardier Aerospace's 50-passenger Canadair Regional Jet(R) (CRJ) airliner and the largest jetliner built in Canada. In total, 31 airlines and corporate customers worldwide have ordered 551 CRJ 50-passenger aircraft. Including the 50- and 70-passenger versions, as well as optioned aircraft, the CRJ program order book total exceeds one thousand aircraft.

In all, Bombardier estimates a market requirement for more than 1,500 70-passenger regional airliners over the next 20 years. In 1998, Bombardier CRJ aircraft won 46 per cent of the jet segment of the 20- to 90- passenger regional aircraft market, accounting for 192 of 414 publicly announced orders.

"Today, regional aircraft are carrying an increasing share of the world's travelers. Bombardier is proud to have played a key role in driving this evolution while supporting the growth of regional airlines at the same time," said Mr. Brown.

"With the introduction of the 50-passenger CRJ, our aircraft and our customers revolutionized the regional airline industry. This newest member of our regional aircraft product family will provide our customers with greater capacity and even better operating economics than the original CRJ," said Michael Graff, president and chief operating officer, Bombardier Aerospace.

Commonality of the CRJ700 with the 50-passenger CRJs, including common crew qualification and spares inventories and proven design, will provide further customer benefits through reduced costs.

Announced customers for the CRJ700 Series include: Brit Air, of Morlaix, France; American Eagle, Dallas-Fort Worth; Atlantic Southeast Airlines, Atlanta; Lufthansa CityLine, Frankfurt; Comair, Cincinnati; and, Horizon Air, Seattle.

As with other Bombardier Aerospace programs, the CRJ700 Series is an international collaborative effort involving aerospace manufacturers in six countries. The wing, forward fuselage, rudder and flight surfaces were designed and are produced by Canadair in Montreal, while the mid-fuselage was designed and is produced by Bombardier's Northern Ireland Shorts operation, in Belfast. The whole aircraft is assembled in Dorval.

More than 5,700 persons work on the CRJ programs in Montreal, including more than 2,200 on the new CRJ700 Series.

External participants in the program include General Electric of the United States, on the complete powerplant (including the engine nacelles designed and built by Shorts); Mitsubishi, of Japan, which designed and builds the aft fuselage; Avcorp of British Columbia, which produces the vertical and horizontal stabilizers; Menasco Aerospace, Oakville, Ontario which produces the landing gear; Rockwell Collins of the U.S., which produces the avionics system; and, AlliedSignal Aerospace, also of the U.S., which produces the auxiliary power unit.

Following a number of flights in the Montreal area, the first CRJ700 Series aircraft will transfer to the Bombardier Aerospace Flight Test Center in Wichita, Kansas, for the completion of the certification flight test program. In all, five aircraft will be employed in the flight test program, which is expected to total about 1,500 hours, with certification planned for the end of the year 2000.

Bombardier Aerospace, a unit of Bombardier Inc., is the world's third largest civil aircraft manufacturer with operations in three countries. Leading the 20- to 70-passenger regional carrier market, Bombardier Aerospace offers complete families of turboprop and regional jet aircraft. It has the industry's widest range of business jets, offering both full and fractional ownership, and also produces firefighting/maritime mission aircraft. It provides technical services, aircraft maintenance and pilot training to business, regional airline and military customers.

Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 12 countries in North America, Europe and Asia, and more than 90 per cent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1999 totalled $11.5 billion.

(R) Registered trademarks of Bombardier Inc.

Note to the editor: Photo available at http://www.aero.bombardier.com/htmen/F15.htm