Bombardier Selected for $508-Million Order to Supply Subway Cars to Mexico City.

Business Editors

MONTREAL--(BUSINESS WIRE)--Oct. 11, 2002

Bombardier Transportation (TSX:BBD.A.TO) (TSX:BBD.B.TO) welcomed the notice given today by Mexico City's transit authority, Sistema de Transporte Colectivo-Metro (STC), to award the consortium comprising Bombardier and CAF, a contract for 405 new subway cars for STC's Line 2. The agreement will become effective upon reception of the Notice To Proceed, which is expected within the next few weeks. The contract would be valued at approximately $761 million CAN ($478 million US) and Bombardier's share would be approximately $508 million CAN ($319 million US).

Delivery of the 45 trainsets - consisting of 9 cars each - would start in the fall of 2004 and continue through to mid 2006. The cars will operate on STC's Line 2, which carries approximately one million passengers per day.

Bombardier Transportation in Mexico would be responsible for the manufacturing, testing and commissioning of 28 trainsets, and for the design and production of 810 bi-motor rubber-tyre bogies. The carshells and train designs would be developed jointly with CAF. Work would be conducted at Bombardier's facility in Ciudad Sahagun, 80 kilometers north of Mexico City, where it currently employs close to 1100 people.

Bombardier Transportation's Mexican site has supplied more than two thirds of the STC rolling stock, 80% of the Monterrey Transportation Authority (Metrorrey) and 100% of the vehicles operated by the Transportation Authority of Guadalajara (Siteur) and the LRV system of Mexico City (STE).

In North America, Bombardier Transportation is the leader in the design and manufacturing of passenger rail vehicles and the delivery of complete automated rapid transit and guideway transit systems. It also maintains two of the largest bi-level commuter fleets in Canada and the U.S., and several automated guided transit systems. Among others, Bombardier-built subway cars are currently in operation in Boston, New York and Philadelphia (United Sates) as well as in Montreal and Toronto (Canada). In Mexico, STC has been operating Bombardier-built subway cars since 1982.

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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