Bombardier Increases Canadair Regional Jet Production Rate Due To Continuing Strong Demand.

MONTREAL--(BUSINESS WIRE)--Aug. 16, 1999--

Bombardier Aerospace (ME:BBD.A.) (TSE:BBD.A.) (TSE:BBD.B.) (ME:BBD.B.) announced today that it is increasing the production rate of the Canadair Regional Jet to meet record demand from airlines around the world.

Effective next summer, the production rate for the 50-passenger CRJ100 and 200 Series will increase to 9.5 aircraft per month from 7.5. This will result in an annual production rate of 112 units, an increase of more than 25 per cent at Bombardier Aerospace facilities in Dorval, Quebec.

This rate increase will have partial impact in the fiscal year 2000/2001 and will be fully implemented by the fiscal year 2001/2002. Production in the fiscal year 2000/2001 will increase from a scheduled 92 aircraft to more than 100 aircraft, up from 78 aircraft in the current fiscal year. When fully implemented next fall, this increase will create more than 600 new jobs.

"This is the second production rate increase for the Canadair Regional Jet in less than a year and reflects continuing strong demand for the aircraft around the world," said Mike Graff, president and chief operating officer, Bombardier Aerospace. "The Canadair Regional Jet has become the best-selling regional aircraft in history, with total orders, conditional orders and options now totalling 1,089 aircraft."

The CRJ100, 200 and new 700 Series have been selling at a record pace this year, with 135 firm orders since January 1, 1999.

In the wake of the favorable ProEx ruling, Bombardier Aerospace announced 27 follow-on orders from three major customers in the past three weeks alone.

These included orders for 20 more CRJ200 Series from Atlantic Coast Airlines in the U.S., two additional CRJ200 Series plus three CRJ700 Series aircraft from Maersk Air Ltd. in the U.K. and two more CRJ200 Series from Tyrolean Airways of Austria.

"Airlines around the world are recognizing the outstanding performance, range and economics of the Canadair Regional Jet," commented Mr. Graff. "The aircraft has clearly changed the air transport industry."

Firm orders to date for the CRJ100 and 200 Series total 577 aircraft, of which 327 are in service with 31 airlines and corporate customers, and 250 remain in backlog. Operators have options or conditional orders for an additional 248 aircraft.

The 70-seat CRJ700 Series has accumulated 99 firm orders plus 165 options or conditional orders. Currently there are two aircraft in flight test at the Bombardier Flight Test Center in Wichita, Kansas and the CRJ700 Series is scheduled for certification in the fourth quarter of 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 business. 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.