Bombardier Completes Negotiation With Horizon Air For Acquisition Of 25 CRJ Series 700 Aircraft.

TORONTO--(BUSINESS WIRE)--Dec. 22, 1998-- Bombardier Aerospace(TSE:BBD.A.) (ME:BBD.B.) Seattle, Washington-based Horizon Air today placed a firm order for 25 new-generation, 70-seat Canadair Regional Jet Series 700 aircraft with Bombardier Aerospace.

The $580 million U.S. ($896 million Cdn.) transaction calls for deliveries to begin in mid-2002.

The Horizon contract raised to 96 the number of firm orders for the CRJ Series 700 which is scheduled to enter airline service early in 2001.

"After a lengthy study, we concluded that the CRJ 700 will be the optimum aircraft for our current jet routes and for future expansion," said George Bagley, president and chief executive officer of Horizon Air. "The CRJ 700 will give us one of the youngest fleets in the sky and reflects our ongoing commitment to the highest levels of customer service," he said.

"Horizon has been a long-standing and important customer for Bombardier," said Robert Gillespie, president of Bombardier Aerospace, Regional Aircraft. "We are pleased that they have once again shown confidence in our products and our award-winning after sales support and we look forward to continuing our partnership well into the 21st century."

Horizon was an early customer for the Dash 8. It placed an initial order for 10 Series 100 aircraft plus 10 options in 1985. Horizon currently has 39 Dash 8 aircraft, including 25 Q Series 200.

Founded in 1981, Horizon Air has grown to become the sixth largest regional airline in the United States, and will board more than four million passengers in 1998. Horizon serves 38 cities throughout four northwest states, Northern California, Alberta and British Columbia, and for the second consecutive year has been voted the country's best regional airline in the U.S. by the readers of Conde Nast Traveler magazine. Horizon Air and Alaska Airlines are subsidiaries of Alaska Air Group Inc.

Bombardier Aerospace, a unit of Bombardier Inc., is the world's third largest civil aircraft manufacturer with its Canadair and de Havilland operations in Canada, Learjet in the United States and Shorts in the United Kingdom. Leading the 20- to 70-passenger regional carrier market, Bombardier Aerospace offers complete families of Dash 8(R) turboprop and Canadair Regional Jet(R) aircraft. It has the industry's widest range of business jets, from the light and mid-size Learjet(R) series to the widebody Challenger(R) and ultra long-range Global Express(R). It also produces the Canadair 415 firefighting/maritime mission aircraft and designs and manufactures airframe components and aircraft engine nacelles.

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 Jan. 31, 1998 totalled $8.5 billion.

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