Bombardier Sets the Record Straight Following Media Reports About its Northeast Corridor Trainsets.

Business Editors

MONTREAL--(BUSINESS WIRE)--Aug. 6, 2002

Following media reports about alleged problems with the Northeast corridor high-speed trainsets known as Acela Express, operated by Amtrak, between Boston, New-York and Washington, Bombardier Transportation (TSX:BBD.A.TO) (TSX:BBD.B.TO) wishes to set the record straight on the following four points:

-- To the statement that the trains are "vastly overpowered," it should be
noted that this is a direct result of the customer's specifications. In fact
during negotiations leading up to the contract, Bombardier had repeatedly
suggested that one power car per trainset was sufficient but the customer's
administration at the time insisted on two power cars.

-- The reported freeze-up of the braking system is attributable to the
customer's request for a new design. Throughout the project, Bombardier
recommended a different brake system than the one the customer insisted upon.
Bombardier repeatedly warned Amtrak, both before and after the contract was
awarded, that its desired system is more prone to revert to its fail-safe
conditions because of its increased complexity. At the time, the customer
nevertheless insisted on the new design. It is noteworthy that none of the
failures are safety related.

-- The reported problem with the toilet door latches arose from the customer's
insistence on a new sophisticated door design. Early on, Bombardier clearly
indicated to the customer that this new design was comprised of mechanisms that
would either lock the door in the open position, or would prevent passengers
from opening the door. The customer nonetheless insisted on this new design.

-- Amtrak instructed Bombardier to deliver trainsets even though Amtrak knew
that insufficient time was available to incorporate numerous requirement
changes.

Bombardier, in cooperation with the customer, is fully committed to the performance of the Acela trainsets and is sparing no effort to ensure the successful implementation of this new high-speed technology in North America. Passengers are delighted with these trains. It is indeed well recognized that Amtrak's ridership on the Boston-New-York-Washington corridor has increased significantly and steadily since the introduction of the Acela Express service.

According to the National Association of Railway Passengers, ridership is up 23%, resulting in a 44% growth in revenues in the twelve-month period ending May 2002. Acela is now the benchmark for high-speed rail technology and service in North America with the commercial success to match.