Bombardier Receives a Contract From The Metropolitan Transportation Authority / Long Island Rail Road for Commuter Rail Cars.

NEW YORK--(BUSINESS WIRE)--May 24, 1999--

Bombardier Transportation was awarded today, by The Metropolitan Transportation Authority/Long Island Rail Road (LIRR), a contract for the supply of 192 electrical multiple unit (EMU) commuter cars to begin replacement of its M-1 commuter car fleet.

The contract is valued at $445 million (US) and calls for the design, manufacture and delivery of new M-7 commuter cars. This contract includes options for up to 808 additional EMU commuter cars that would be supplied to both MTA commuter railroad agencies, The Long Island Rail Road (LIRR) and Metro North Railroad (MNR). Should all options be exercised, the total contract would be valued at $1.85 billion (U.S.).

The MTA commuter agencies together are the largest commuter railroad network in North America, serving more than 500,000 riders every weekday. Commenting on today's announcement, Peter Stangl, President of Bombardier Transportation's US division said "Bombardier is extremely pleased to have the opportunity to provide these new railcars for the Long Island Rail Road. This contract represents Bombardier's first contract for passenger railcars with the Long Island Rail Road. With the completion of this contract Bombardier will have provided all MTA Operating Agencies (Metro North Commuter Railroad, Long Island Rail Road, New York City Transit) with top quality passenger rail equipment. This order, once again, confirms Bombardier as the leading supplier of passenger rail equipment in North America. We commend the MTA on their decision to combine the rolling stock needs of both MTA commuter railroads and look forward to helping the MTA achieve their goal to better serve their customers."

Manufacturing and Assembly

The M-7 stainless steel carbodies will be fabricated at Bombardier's La Pocatiere, Quebec plant with final manufacturing and assembly at the Plattsburgh, NY plant. Manufacturing will begin 12 months following Notice to Proceed and deliveries to the LIRR will begin in the 2nd Quarter of 2002 and will run through the 2nd Quarter of 2003. Bombardier, through its comprehensive supplier network in New York State will maximize New York State content for the M-7 program. It is estimated that the production work will generate some 500 job years at the Bombardier facilities in the USA.

The LIRR M-7 Technology:

The M-7 vehicles will incorporate the most advanced technologies to serve the needs of the broad spectrum of passengers who ride each day. Areas of special design concentration include seating, toilet facilities, wheelchair passenger accessibility, and communications equipment. These stainless steel vehicles will be fully motorized married pairs, each having a full-width operator's cab at each end and capable of operating at speeds up to 100 mph. These cars will utilize state-of the-art technology including IGBT propulsion, energy efficient dynamic braking, on-board monitoring and diagnostic systems. The total vehicle design is focused on optimizing customer safety and comfort while ensuring excellent train performance and reliability.

Bombardier Transportation, a world leader in the manufacturing of passenger rail cars, offers a full range of urban, suburban and intercity vehicles as well as complete rail transit systems worldwide. It also manufactures freight cars and provides operations and maintenance services.

Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 12 countries in North America, Europe and Asia, and more than 90% of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1999 totaled $11.5 billion (CAN).