Bombardier Signs $1.3 Billion US Deal with GECAS for CRJ200s, CRJ700s and CRJ900s.

Business Editors

TORONTO--(BUSINESS WIRE)--June 9, 2000

Bombardier Aerospace (TSE:BBD.A.) (TSE:BBD.B.) has signed a purchase agreement with GE Capital Aviation Services (GECAS) for the sale of up to 150 CRJ* aircraft consisting of 50 firm aircraft orders plus 100 options.

The value of the firm aircraft orders is estimated at up to $1.3 billion US ($1.96 billion Cdn.). When all the options are executed, the total value will be $3.9 billion US ($5.87 billion Cdn.).

The sale to GECAS constitutes the first major order from an operating lessor for Bombardier's world leading family of regional jets. Under terms of the contract, GECAS will purchase a family of 50 firm CRJ aircraft including 15 CRJ200s, 25 CRJ700s and 10 CRJ900s. The CRJ900 orders are subject to formal launch of that program and are convertible to other CRJ variants.

Deliveries for the firm aircraft will begin in 2002 and stretch through late 2006.

The contract provides model and delivery flexibility for GECAS.

"This order with Bombardier continues our strong commitment to expand our portfolio of Canadair Regional Jets to better serve our customers' needs in this growing market. In addition, this acquisition is part of GE's continued efforts to source products and services in Canada in support of GE's Industrial Benefits Programs" said Henry A. Hubschman, president and chief executive officer for GECAS. "In the past 18 months, GECAS has already financed 28 CRJ deliveries to its customers and is confident that the marketplace will react positively to this order."

"We are very proud of this milestone GECAS order. This builds further on the strong foundation and long relationship between GE and Bombardier," said Michael Graff, president and chief operating officer, Bombardier Aerospace. "We believe that, with this order, the global reach of the CRJ product line will be extended even further with GECAS offering an operating lease product opportunity for customers with a need for this kind of structure," he said.

GE Aircraft Engines, another GE division, supplies versions of its CF34 powerplant to all current models of Bombardier's CRJ family of regional jets.

"Today's commitments from GECAS bring total deliveries, orders and options for the CRJ family to 1,400 aircraft," said Steven Ridolfi, president, Bombardier Aerospace, Regional Aircraft. "This order underscores the value of a family of regional jets providing customers with optimal choice while maximizing the value of product commonality for their operations."

Bombardier pioneered the regional jet concept when its original 50-seat version entered revenue service late in 1992. Since that time, 400 50-passenger CRJs have been delivered to customers worldwide. The company's new 70-passenger CRJ700 is set to initiate commercial service during the first quarter of 2001. Subject to formal launch, the CRJ900 would enter airline service in the fourth quarter of 2002 - well ahead of any competition. Bombardier's airliner family concept helps to reduce operating, maintenance and spares costs to operators with mixed CRJ fleets through commonality in flight crew and maintenance training as well as substantial capital savings through parts and equipment common to all members of the airliner family.

GECAS, a GE Capital company, owns and manages a fleet of 950 aircraft and provides services to 155 customers in 54 countries. GECAS provides airlines with a full range of fleet and financing solutions, including operating leases, sale/leasebacks, aircraft purchase and trading, finance leases, engine/spare parts financing, pilot training, fleet planning and financial advisory services. GECAS is headquartered in Stamford, Connecticut, and has offices in Miami, Hong Kong, Singapore, Beijing, Vienna and Shannon, Ireland. GE Capital, a wholly owned subsidiary of General Electric Company, is a global, diversified financial services company. For more information, visit their website at www.gecas.com.

Bombardier Aerospace, a unit of Bombardier Inc., is the leader in business, regional and amphibious aircraft manufacturer. With full design and production capabilities in three countries, it offers the most comprehensive families of turboprop and regional jet aircraft and the widest range of business jets. It also provides the Flexjet fractional business aircraft ownership program, technical services, aircraft maintenance and pilot training for business, regional airline and military customers.

Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It is also a provider of financial services and asset management. The Corporation employs 56,000 people in 12 countries in North America, Europe and Asia, and more than 90 per cent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended Jan. 31, 2000, totalled $13.6 billion Cdn.

* Trademark of Bombardier Inc.

Note to editors:

An image of Bombardier CRJ200, CRJ700 and CRJ900 aircraft can be accessed at www.aero.bombardier.com/htmen/F14.htm.