Bombardier Receives Additional Order for Metro Cars in Shanghai, China.

Business Editors

MONTREAL--(BUSINESS WIRE)--Dec. 19, 2002

Bombardier Transportation (TSX:BBD.A) (TSX:BBD.B) and the Changchun Car Company (CCC) are pleased to announce that their joint venture, Changchun Bombardier Railway Vehicles Co. Ltd. (CBRC) has received an order from Shanghai Metro Operation Company for the supply of 60 metro cars (ten six-car trainsets). The vehicles will be used for Shanghai Metro Line 1.

The order is valued at $121 million Cdn (76 million Euro), and Bombardier Transportation's share is valued at approximately $78 million Cdn (49 million Euros).

The trains will be built at the CBRC plant in Changchun, Jilin Province in Northeast China (approximately 800 km Northeast of Beijing). The bogies are to be designed and manufactured by Bombardier at its Derby, UK facility as well as by CRBC locally in China. Propulsion equipment will be supplied by Bombardier's Vasteras, Sweden site. The metro trainsets are scheduled to be delivered between June 2004 and May 2005, with revenue service scheduled to commence in 2004.

The 140 metre-long high-capacity metro trains are based on the latest modular technology to respond to local content requirements. They incorporate advanced Bombardier Transportation designs such as the modular aluminum carbody, state-of-the-art Mitrac propulsion, and high-performance bogies.

Olof Persson, President, Metros, Bombardier Transportation, was very pleased with the order and commented, "Once again the customer has shown their trust in our products and in our people. The Shanghai metro system will benefit from these new vehicles, which incorporate the latest technology, and these new vehicles will be well received by the travelling public."

Bombardier has two current rolling stock joint ventures in China. The first one, CBRC, was formed with Changchun Car Company in 1996. It is dedicated to the production of metro vehicles. Two contracts have already been awarded to CBRC, one by the City of Guangzhou for 156 vehicles for their Line 2. The City of Shenzhen also ordered 132 metro cars for Phase 1 of its metro network.

The second joint venture, Bombardier Sifang Power (Qingdao) Transportation Ltd., was formed in 1998 by Bombardier Inc., Power Pacific Corporation Limited and China National Railways Locomotive and Rolling Stock Industrial Corporation (LORIC) to produce mass transit railcars. Its production facility is located at the plant of Sifang Locomotive and Rolling Stock Works, a LORIC subsidiary, in Qingdao, Shandong Province, 550 km South East of Beijing. It received its first contract in 1999 from the Ministry of Railways in China to supply 300 high-grade intercity cars. Delivery of the first vehicles is scheduled for early 2003.

As consortium leader for rolling stock, Bombardier Transportation has already delivered to China the metro systems for Shanghai Line 1 and Line 2 (96 cars for Line 1 and an additional 222 cars for Line 2.), Guangzhou Line 1 (126 cars) and Hong Kong Airport Express Line (184 cars).

Including its joint ventures, Bombardier Transportation currently employs approximately 900 people in China. It has offices located in Beijing, Shanghai, Guangzhou and Hong Kong in addition to its joint venture facilities.

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 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).

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