Bombardier Receives a $121-Million Order for the Supply of Diesel Multiple Units for the United Kingdom.

Business Editors

MONTREAL--(BUSINESS WIRE)--June 10, 2002

Bombardier Transportation (TSX:BBD.A.) (TSX:BBD.B.) announced that it has received an order for the provision of 45 Turbostar diesel-multiple-unit cars (DMU) for Porterbrook Leasing Company Ltd in the UK, part of Abbey National Treasury Services plc. The total contract value is approximately $121 million Cdn (pounds sterling 54 million) for vehicle manufacture, with deliveries of the units commencing in the first quarter of 2003.

The order also includes an option worth up to $170 million Cdn (pounds sterling 76 million) for an additional 63 cars, potentially taking the total order up to 108 cars. The total contract value could therefore rise to over $291 million Cdn (pounds sterling 130 million) if the option is exercised

The Turbostar trains are being acquired by Porterbrook in anticipation of the growing needs of the expanding railway in Britain. The operators and vehicle destinations have therefore not yet been confirmed.

Paul Francis, Managing Director for Porterbrook Leasing Ltd., said: "With the current and future changes in franchises in the UK rail industry we are keen to be innovative in our approach to supplying the future rolling stock needs of our customers. This contract will allow us to offer the short lead times the Train Operating companies have been looking for with DMU stock. The Turbostar has already proved to be a very popular product with operators and now, after much hard work by Bombardier and ourselves, achieving reliability levels that make it amongst the best of the DMUs operating in the UK. It is for these reasons that we feel confident in agreeing terms for this future contract and this initial batch of 45 new vehicles will take the Porterbrook Turbostar fleet to over 300."

President of Bombardier Transportation, Intercity, Rik Dobbelaere, commented: "This is extremely good news for Bombardier Transportation, I am delighted that Porterbrook Leasing has once again shown confidence in our Turbostar product. Turbostar trains are currently in operation with no less than seven operators across the UK."

The Turbostar units will be manufactured at Bombardier Transportation's production facility in Derby, UK. The 160 km/h (100 mph) trains will be of modern, stylish design and will be fully air-conditioned. Modern passenger information systems will keep on-board passengers informed of any train service alterations and other journey information.

Bombardier has a major presence in the UK, employing close to 12,000 people across the country, of which 5,200 work for Bombardier Transportation. As well as manufacturing capability at the Derby and Wakefield sites, Bombardier Transportation has refurbishment, maintenance and overhaul centres at Crewe, Central Rivers, Chart Leacon, Ilford, Croydon and 13 other locations throughout the UK.

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. Bombardier trades on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).

Editors Notes

Porterbrook Leasing Company Limited ("Porterbrook") is a leading player in the UK rail leasing market. Porterbrook has a rolling stock fleet of over 5,500 vehicles on lease or on order, which includes about 4,000 passenger vehicles. These are supplied under operating leases to 18 of the 25 train operating companies (TOCs) within the UK. The company also provides ongoing train and tram maintenance services. Porterbrook has been highly successful in winning new train orders since privatisation, with over pounds sterling 1.3 billion in new business won - investing in over 1,350 new passenger vehicles and 1,100 new freight locomotives and wagons, and in the refurbishment of much of its in-fleet equipment. In April 2000 the Porterbrook group of companies was acquired by Abbey National Treasury Services plc, part of Abbey National Group.