Bombardier Sells Six Dash 8Q Aircraft to Augsburg Airways.

TORONTO--(BUSINESS WIRE)--May 18, 1998--Bombardier Aerospace(TSE:BBD.A.) (ME:BBD.A.) (TSE:BBD.B.) (ME:BBD.B.) Team Lufthansa member Augsburg Airways of Augsburg, Germany, has announced a firm order for four 50-seat Dash 8Q Series 300 and two 37-seat Dash 8Q Series 200 aircraft from Bombardier Aerospace. The contract was originally signed in November 1997 for three firm aircraft, has since been increased to six aircraft and was previously undisclosed. Augsburg also has options on seven additional Dash 8Q aircraft.

The contract for the six aircraft is valued at approximately $78 million U.S. ($112.2 million Cdn.).

In order to provide Augsburg with greater flexibility in its future fleet planning, the seven optioned aircraft can include the Series 200, 300 or new 70-seat Dash 8Q Series 400 models. The Series 400, currently in certification flight test, is scheduled to enter airline service in the first quarter of 1999.

Augsburg Airways, a long-term Dash 8 operator formerly known as Interot, serves several cities in Germany and neighboring European countries.

"We have been delighted with the reliability and economy as well as passenger acceptance of our current Dash 8 aircraft," said Olaf Dlugi, managing director of Augsburg Airways. "Replacing these aircraft and expanding our fleet with the new, quiet Dash 8Q models with their Noise and Vibration Suppression (NVS) system will offer our passengers a level of comfort unavailable on any other turboprop aircraft."

Bombardier Aerospace, a unit of Bombardier Inc., is the world's third largest civil aircraft manufacturer with its Canadair and de Havilland operations in Canada, Learjet in the United States and Shorts in the United Kingdom. Leading the 20- to 70-passenger regional carrier market, Bombardier Aerospace offers complete families of Dash 8(R) turboprop and Canadair Regional Jet(R) aircraft. It has the industry's widest range of business jets, from the light and mid-size Learjet(R) series to the widebody Challenger(R) and ultra long-range Global Express(R). It also produces the Canadair 415 firefighting/maritime mission aircraft and designs and manufactures airframe components and aircraft engine nacelles.

Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the fields of transportation equipment, aerospace, and recreational products. It also provides financial services and services related to its products and core competencies. The Montreal-based Corporation operates plants in Canada, the United States, Mexico, Austria, Belgium, Czech Republic, Finland, France, Germany, Switzerland and the United Kingdom, employing 47,000 people. Bombardier's revenues for its fiscal year ended January 31, 1998 totalled 8.5 billion Canadian dollars, and more than 88 percent of its revenues are generated in markets outside Canada.

(R) Registered trademarks of Bombardier Inc.

Internet address: http://www.aero.bombardier.com

CONTACT: Bombardier Aerospace

Colin Fisher, 416/375-3030

or

Bombardier Aerospace

Catherine Chase, 514/855-7980