Bombardier Receives $145 Million US Order in Spain for High-Speed Trains and Power Heads.

MONTREAL -- A consortium comprising Bombardier and Patentes Talgo has received an order from the Spanish National Railways (RENFE) for the supply of 18 high-speed trains and 10 high-speed power heads. The total contract is valued at approximately 338 million euros ($403 million US) and Bombardier's share is approximately 122 million euros ($145 million US). Deliveries are scheduled to take place between December 2007 and August 2009.

The new trains, as well as the power heads, are designed to reach a maximum speed of 250 km/h and will be equipped with high-technology systems such as the dual-voltage propulsion system, a state-of-the-art signalling system and the variable-gauge bogies. This will enable RENFE to use the new rolling stock on Spain's new high-speed lines as well as on the country's conventional network. The new trains and the power-heads will be able to operate in four different signalling environments: European Train Control System (ETCS), LZB, Bombardier Ebicab 900 and the ASFA systems.

The 10 power heads are to be coupled with variable-gauge coaches to form five train sets, which can vary in terms of number of cars. This solution will improve flexibility for the operator, enabling RENFE to adapt the rolling stock fleet to the needs of its commercial operation.

Bombardier's scope of supply will include the manufacture of the entire electrical equipment, the propulsion system, the train control and communication systems and an exhaustive signalling system. Bombardier will also participate in the final assembly and testing of the trains and the power heads.

The production of a large part of the propulsion system will be undertaken at Bombardier's plant in Trapaga, Spain. Production of the mechanical components, including the variable-gauge bogies, will be under Talgo's responsibility.

Jose Caparros, Chief Country Representative, Spain, Bombardier Transportation, commented: "By offering our world leading high-speed rail technology and experience in Spain, we are strongly contributing to the development of the Spanish high-speed rail system, while adding high value to the country's economy and technological progress".

"This order is a further demonstration of the confidence that our Spanish customers have in Bombardier's expertise and know-how. From the high-speed rail segment to the Mass Transit and signalling markets we are, everyday, present in more and more projects in Spain", said Edmund Schlummer, President, Locomotives & Freight, Bombardier Transportation.

Bombardier is the manufacturer with the largest number of references in the high-speed rail segment worldwide. Its portfolio includes 20 different intercity and high-speed products, including seven different high-speed locomotives. Bombardier has participated in the development of many of the world's leading high-speed rail systems, including Spain's AVE 102, four different TGVs, the ICE family of trains used in Germany and the Netherlands, Italy's ETR 500 and China's Xinshisu. Today, Bombardier is a key player in Spain's rail industry, employing more than 500 people at its sites in Trapaga, Alcobendas, Madrid and Barcelona, and participates in some of the country's main rail projects. The AVE 102 very high-speed train and the Madrid Barajas airport people mover are two such projects.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005, were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.

AVE, TGV, ICE and ETR are trademarks of third parties.

BOMBARDIER TRANSPORTATION (TSX:BBD.MV.A) (TSX:BBD.SV.B)