Bombardier Capital Finalizes Acquisition of NationsCredit Manufactured Housing Finance Portfolio.

COLCHESTER, Vermont--(BUSINESS WIRE)--Jan. 6, 1999--Financial services provider Bombardier Capital (ME:BBD.A)(TSE:BBD.A)(ME:BBD.B) (TSE:BBD.B) announced today that it has closed an agreement to purchase a manufactured housing inventory finance portfolio from NationsCredit Manufactured Housing Corporation. The firms have been conducting negotiations and due diligence activities since signing a letter of intent in early December.

The portfolio includes outstanding loans of $195 million with approximately 290 U.S. retailers and is expected to double Bombardier Capital's share of the U.S. floorplan financing market for manufactured housing. Bombardier Capital's current floorplan financing operations encompass 540 manufactured housing retailers and US$200 million in assets under management.

Larry Assell, vice president and general manager of Bombardier Capital's U.S. inventory finance business, said the purchase is an excellent strategic fit with existing operations and continues a long-term strategy of managed growth in the manufactured housing market.

"This acquisition significantly strengthens our presence in an industry that is very important to us," said Assell. "It represents a key step in the long-term development of our manufactured housing business."

Bombardier Capital has been providing inventory finance services to retailers in the manufactured housing industry since 1988. In 1997, the company expanded its business operations to include consumer financing for manufactured housing retailers in the U.S.

Rick Odom, vice president, inventory finance for manufactured housing, said the acquisition reflects Bombardier Capital's ongoing commitment to the manufactured housing industry.

"This sends a clear signal to the market that we are serious about the manufactured housing business," said Odom. "Our intention is to be the financial services provider of choice for manufactured housing retailers, and we will continue working toward that goal in both the inventory and consumer finance sectors of the market."

Bombardier Capital is the financial services arm of global transportation equipment manufacturer Bombardier Inc. An international provider of financial solutions, Bombardier Capital offers a full line of lending, leasing, and asset management services to customers consumer, inventory, commercial and industrial markets. Bombardier Capital employs more than 1,100 people at multiple locations in the United States, Canada and Europe.

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 11 countries in North America and Europe and more than 88 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1998 totaled $8.5 billion.