Bombardier Presents Game-Changing Technologies at UITP Congress in Madrid.

Business Editors

UITP 

MADRID, Spain--(BUSINESS WIRE)--May 5, 2003

Bombardier Transportation (TSX:BBD.A)(TSX:BBD.B) today launched its new FICAS(i) technology - a revolutionary way of building railway vehicles - at the International Union of Public Transport (UITP) World Congress held in Madrid.

FICAS - which stands for Fully Integrated Carbody Assembly System - is a highly innovative modular sandwich construction comprising stainless steel bonded to a rigid foam core. The new system brings significant benefits to the rail operators - particularly those involved in urban transit - including increases of up to 10% in passenger capacity with no changes required to the exterior dimensions of the carbody. Other tangible benefits of FICAS include reduced vehicle weight, which translates into less energy consumption and reduced track pressure, as well as superior exterior finish that results in a more attractive vehicle. All those added-value features are incorporated into vehicles that offer crashworthiness in compliance with the latest standards and levels of insulation similar to conventional carbodies.

FICAS is particularly well suited to Bombardier Transportation's MOVIA(i) metros product family - providing more inner space in the vehicles along with the excellent modularity that is a hallmark of the MOVIA concept. Space is a luxury on all metro systems and FICAS truly represents a game-changer solution in that regard.

"We are very pleased to launch the FICAS technology here in Madrid today" stated Bombardier Transportation President and Chief Operating Officer Pierre Lortie. "The opportunity to share this event with our launch partner Storstockholms Lokaltrafik and our friends at UITP shows that we are all working together to benefit the railway industry and its passengers.

The first application of FICAS technology - the new C20 FICAS metro for the city of Stockholm - was unveiled today at the UITP Exhibition. The new train is capable of carrying up to 35 more passengers per train than a conventional C20 unit, is 2.6 tonnes lighter and has a superb, flat exterior finish. Bombardier's new C20 FICAS train will begin commercial operation in Stockholm in June 2003. FICAS technology will be made available to other Bombardier customers in the fall of this year.

Bombardier Transportation also unveiled its new vehicle design for the Mexico City metro. This contract, which was awarded in October 2002 to a consortium comprised of Bombardier and Spain's CAF and represents 323 million Euros to Bombardier, is meeting all program milestones, with deliveries to commence in the fall of 2004. The Mexico City metro project is just the latest example of successful co-operation between Bombardier Transportation and CAF in the mass transit sector. Other examples include the Pittsburgh light-rail vehicle in the U.S., the Madrid and Bilbao metros in Spain and a recently signed agreement for production of new Rome metro vehicles.

Another technological advance being showcased at UITP is Bombardier Flexiblok(i), a state-of-the-art automatic train control system developed by Bombardier's Total Transit Systems division. Flexiblok enables operators to keep precise track of a train's whereabouts, without the need for either standard track circuits or an onboard operator. Since train-to-wayside communications is provided via two-way radio, Flexiblok technology can be used as an overlay radio-based train control system to upgrade existing fixed block systems.

A new automated people mover at San Francisco International Airport recently became the first system featuring Flexiblok technology to enter commercial service. Flexiblok technology will also be deployed on the Neihu Line for the City of Taipei, as part of a rapid transit system order recently awarded to Bombardier. In future, Flexiblok will be used in a broad range of mass transit applications that also will include light rail and metro systems.

Bombardier is currently engaged in some of the most challenging projects in the world, Mr. Lortie underlined, citing the Madrid-Barajas people mover, the Metro Porto light-rail project and an impressive London Underground contract. "The value of European projects currently being carried out by our Total Transit Systems division alone is close to 3 billion Euros."

Bombardier Transportation is the global leader in the rail equipment manufacturing and servicing industry. Its wide range of products includes passenger rail cars and total transit systems. It also manufactures locomotives, freight cars, propulsion & controls and provides rail control solutions.

Bombardier Inc., a diversified manufacturing and services company, is a world-leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorised recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montreal, Canada, the Corporation has a workforce of some 75,000 people and manufacturing facilities in 25 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2003 stood at $23.7 billion Cdn (15.8 billion Euros). Bombardier shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).

(i) Trademarks of Bombardier Inc. or its subsidiaries