Bombardier Receives Additional Order for Electric Locomotives and Double-Deck Coaches in Germany.

Business Editors

MONTREAL--(BUSINESS WIRE)--Jan. 10, 2003

Bombardier Transportation (TSX:BBD.A.TO) (TSX:BBD.B.TO) has received an order from the Local Transport Authority of Lower Saxony (LNVG) in Germany for the delivery of another 40 double-deck coaches and eight locomotives, including their maintenance for 15 years. The contract is valued at approximately $212 million Cdn (130 million Euros). This order brings to 106 the number of double-deck coaches, and to 18 the number of locomotives ordered by LNVG from Bombardier Transportation since January 2002. The trains are scheduled to be delivered between July and October 2005.

The electric locomotive of the class 146.1 is a further development of the freight locomotive, class 185, and has been specifically designed for local and regional transport. For instance, the train's destination is indicated in a display across both front windows. Other features include a passenger information system and a door control function. The locomotive's maximum speed of 160 km/h makes it also suitable for regional express transport. The vehicles will be manufactured at Bombardier's facility in Kassel, Germany.

The 40 state-of-the-art double-deck coaches feature first and second class compartments and are being produced both as cab cars and as trailer cars. All vehicles will be produced at Bombardier's plant in Gorlitz, Germany where more than 1000 double-deck coaches have already been produced for Deutsche Bahn. The Bombardier double-deck trains are very popular worldwide and successfully in service for local and regional transport in the Netherlands, Denmark, Switzerland and Israel.

Jurgen Fleischer, President Regional & Commuter, Bombardier Transportation, pointed out: "This follow-on order for double-deck cars and locomotives is further proof of our competence to build complete regional trains. We are convinced that the new vehicles will provide an additional boost to the local and regional transport in Lower Saxony."

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

Bombardier Inc., a diversified manufacturing and services company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized 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 80,000 people in 24 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002 stood at $21.6 billion Cdn. Bombardier trades on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).