Bombardier Transportation Signs Cooperation Agreement With Mitsubishi Heavy Industries Ltd., of Japan.

SAINT-BRUNO, Quebec--(BUSINESS WIRE)--Sept. 15, 1999--

(ME:BBD.A.) (TSE:BBD.A.) (ME:BBD.B.) (TSE:BBD.B.) Bombardier Transportation announced today, through its Kingston, Ontario-based Transit Systems, the signing of a cooperation agreement with Mitsubishi Heavy Industries, Ltd. (MHI) of Tokyo, Japan.

Under the terms of the agreement, Bombardier and Mitsubishi will work together in exclusivity to explore and develop market opportunities for MHI's Airport People Mover (APM) technology throughout North America and Europe.

The agreement assigns to Transit Systems the primary responsibility for marketing and sales and the overall systems integration responsibility of Mitsubishi's APM technology. As project leader, Bombardier's scope of work will typically include the design and supply of power supply, communications and information systems; automatic fare collection; installation work; systems engineering and integration; testing and commissioning of Bombardier-supplied equipment; as well as operations and maintenance services of the completed people mover systems. Mitsubishi's anticipated work would involve the supply of the people mover vehicles and vehicle spare parts; as well as integration, supervision, testing and commissioning of MHI-supplied subsystems and equipment, including the automatic train control system.

The Mitsubishi technology uses rubber-tired vehicles and is successfully operating in Japan and at the Chek Lap Kok Airport in Hong Kong. Bombardier Transportation President and Chief Operating Officer, Jean-Yves Leblanc, commented that "Bombardier foresees an excellent opportunity for supplying people mover systems to North American and European airport properties. This long-term agreement takes full advantage of our combined strengths to expand in the airport market sector, which is estimated at approximately US $2 billion over the next ten years in the agreed territory."

Mitsubishi Heavy Industries, Ltd. is one of the largest manufacturers in Japan. From its start as a shipbuilder, MHI's business operations now encompass steel structures, power systems, plants, air-conditioners, machinery for general and industrial use, aerospace and transportation systems. MHI operates 14 enterprises in Japan and has developed business activities around the world through a host of overseas offices and subsidiaries. MHI's revenues for its fiscal year ended March 31, 1999, totalled US $24.1 billion (2,908 billion yen).

Bombardier Transportation, a world leader in the manufacturing of passenger rail cars, offers a full range of urban, suburban and intercity vehicles as well as complete rail transit systems world-wide. It also manufactures freight cars and provides operations and maintenance services. Bombardier Aerospace in Japan

Bombardier's business interests in Japan are well demonstrated by the long-established partnership between Bombardier Aerospace and Mitsubishi Heavy Industries and other local suppliers. MHI is responsible for designing and manufacturing large airframe components for Bombardier's ultra long-range Global Express, the super midsize Bombardier Continental Business Jet aircraft, including the 70-passenger Q400 Dash 8 turboprop and the CRJ 700 Series regional airliner.

Bombardier aircraft are solidly positioned in the Japanese market and interest is strong in its new business jets and regional airliners. The Q Series Dash 8 turboprop aircraft have been ordered by the Ryukyu Air Commuter and Amakusa Airlines with more than 30 Challenger and Learjet business aircraft sold to Japanese investors.

Bombardier Inc. is a Canadian corporation, active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 12 countries in North America, Europe and Asia and more than 90 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1999, totalled $11.5 billion.