Bombardier Places 10 Additional Canadair Regional Jets With Dulles-Based Atlantic Coast Airlines.

TORONTO--(BUSINESS WIRE)--Dec. 17, 1998--Bombardier Inc.(TSE:BBD.A.) (ME:BBD.A.) (TSE:BBD.B.) (ME:BBD.B.) Bombardier Aerospace has signed an agreement for the sale of 10 additional Canadair Regional Jet Series 200ER aircraft plus 10 options with Atlantic Coast Airlines (ACA) of Dulles, Virginia.

The $210 million U.S. ($324 million Cdn.) transaction calls for deliveries to commence in July 2000 and be completed in September 2001 and represents the conversion of 10 existing options.

ACA serves United Airlines hubs at Washington Dulles and Chicago O'Hare international airports offering 500 daily departures systemwide to 53 destinations in 24 states. The airline's new CRJ aircraft will augment service on existing routes and provide for planned route expansion.

ACA's firm CRJ orders now total 43 aircraft, 14 of which are delivered and in service. The airline also holds options for 27 additional CRJ aircraft.

"With our initial purchase of the Canadair Regional Jet in January 1997, Atlantic Coast Airlines made a crucial corporate strategic decision to enter a new era for the company," said Kerry Skeen, ACA president and CEO. "The CRJ's superior economics and enhanced passenger amenities have enabled ACA to effectively meet competitive challenges in an increasingly dynamic regional airline environment."

"We are proud that our Canadair Regional Jet has played an integral part in Atlantic Coast Airlines' growth and success," said Bombardier Aerospace, Regional Aircraft president Robert Gillespie. "With ACA's announcement today our Canadair Regional Jet orderbook now totals 515 firm orders, 276 of which are delivered."

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 per cent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1998 totalled $8.5 billion.

(R) Registered trademarks of Bombardier Inc.