Bombardier Signs Cooperative Memorandum Of Understanding With Renong Berhad In Malaysia.

MONTREAL--(BUSINESS WIRE)--Jan. 19, 1996--During the visit in Malaysia of the Team Canada trade mission headed by Canada's Prime Minister, Jean Chretien, Laurent Beaudoin, Chairman and Chief Executive Officer of Montreal-based Bombardier Inc. (TSE, ME: BBD.A), and Tan Sri Halim Saad, Executive Chairman of Renong Berhad, a major Malaysia-based investment and infrastructure group, signed a Memorandum of Understanding.

This M.O.U. calls for a continued cooperation in the implementation of rail transit systems in Malaysia as well as future cooperation in the identification of markets and the promotion of the LRT 2 System project technology in the Asia Pacific Region. The agreement also calls for the final assembly of transit vehicles supplied under future projects to be performed in Malaysia.

This cooperation stems from a current project in which Bombardier's Transportation Equipment Group - North America is under contract from a Renong Berhad company, Projek Usahasama Transit Ringan Automatik SDN BHD (PUTRA), to manufacture and supply 70 Advanced Rapid Transit Mark II vehicles and related systems for Phase 1 of the LRT 2 System Project that will serve the western and eastern suburbs of Kuala Lumpur.

The order for the LRT 2 System turnkey project, valued at 939 million Canadian dollars, was awarded in November 1994 to a Canadian consortium headed by Bombardier Inc., in partnership with SNC-Lavalin Inc., with Bombardier's share amounting to 560 million.

Upon signing the cooperation M.O.U., Laurent Beaudoin said he was pleased that "the good working relationship already established between Bombardier and Renong Berhad would be extended to any new phase of the LRT 2 System and to any other Malaysian project calling for the same technology."

"The Kuala Lumpur system," added Mr. Beaudoin, "will constitute an excellent showcase for our Advanced Rapid Transit vehicles and, with the added cooperation of Renong Berhad, we feel confident that new opportunities will open up for this technology in the Asia Pacific region."

Renong Berhad is a major Malaysia-based investment and infrastructure group which heads a group of seven public-listed companies and more than 100 related operations. The Company is a leading infrastructure developer providing engineering, project management and construction services mainly in the fields of highway construction, building, power and transportation.

Through subsidiaries, it offers financial services, is active in the oil and gas services industry, and owns and operates the Merlin chain of hotels, the largest in Malaysia. In total, Renong Berhad and its subsidiaries employ over 15,000 people.

Based in Saint-Bruno, Quebec, Bombardier's Transportation Equipment Group - North America is the leading supplier of passenger railcars in North America, operating plants in La Pocatiere, Quebec; Thunder Bay and Kingston, Ontario; Barre, Vermont; Plattsburgh and Auburn, New York; and Sahagun, Mexico.

It offers a complete range of urban, suburban and intercity vehicles: subway cars, light rail vehicles, self-propelled commuter cars, automated rapid transit systems, intercity cars and, in association with GEC Alsthom, the TGV high-speed train and the American Flyer train.

Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the fields of transportation equipment, civil and military aerospace and motorized consumer products. Its products are sold on five continents with high concentration in North America and Europe.

The Montreal-based corporation operates plants in Canada, the United States, Mexico, Austria, Belgium, Finland, France, Germany and the United Kingdom, employing 37,000 people. Bombardier's business volume now totals 5.9 billion Canadian dollars, and nearly 90 percent of the Corporation's revenues are made in markets outside Canada.

CONTACT: Bombardier Inc.

Anne Gagnon, 514/441-2020