Bombardier Wins $160-Million Order From Spanish National Railways for Variable-Gauge High-Speed Power Heads.

Business Editors

MONTREAL--(BUSINESS WIRE)--April 2, 2004

A consortium comprising Bombardier Transportation and Patentes Talgo has received an order from the Spanish National Railways (RENFE) for 44 high-speed power heads. The total contract is valued at approximately $303 million Cdn (188 million Euros) and Bombardier's share is approximately $160 million Cdn (100 million Euros). The power heads are scheduled to be delivered to the customer from June 2006 to August 2008.

Bombardier's scope of supply will include the manufacture of the entire electrical equipment, the propulsion system, the train control and communication systems, and an exhaustive signalling system. Bombardier will also participate in the final assembly and testing of the power heads. The production of a large part of the propulsion system will be undertaken at Bombardier's plant in Tr paga, Spain. Production of the mechanical components, including variable-gauge bogies, will be under Talgo's responsibility.

Designed to reach a maximum speed of 250 Km/h, the new power heads will be equipped with variable-gauge bogies. They will be coupled with variable-gauge coaches to form 22 nine-car trainsets to be used on Spain's new high-speed lines (which are 1,435-millimeter gauge) as well as on the country's conventional network (which is 1,668-millimeter gauge).

These trains will integrate the most modern and complex multienvironmental automated train protection technology, which enables them to operate in four different safety environments, including the European Rail Traffic Management System (ERTMS) Levels 1 and 2, as well as the Bombardier(i) EBI(i) Cab 900 TBS, the Bombardier LZB, and the ASFA systems.

"This order is a further demonstration of the confidence that our customers have in Bombardier's expertise and know-how in the high-speed segment. It is strategic for us as it consolidates and opens new possibilities for Bombardier's operations in the Spanish market", said Wolfgang Toelsner, Chief Operating Officer, Bombardier Transportation.

Bombardier Transportation is the manufacturer that has contributed to the highest number of high-speed projects worldwide. Its portfolio includes 20 intercity and high-speed products, including seven different high-speed locomotives. Bombardier Transportation has taken part in the development of many of the world's leading high-speed rail systems, including Spain's AVE(i)(i) S 102 train, four different TGV(i)(i)(i) projects, the ICE(i)(i)(i) family of trains used in Germany and the Netherlands, Italy's ETR 500, China's Xinshisu and America's Acela(i)(i)(i) train.

Bombardier Transportation, one of the largest players in Spain's rail industry, has participated in some of the country's main railway projects. Among them are the AVE S 102 very high-speed train, which will link Madrid, Barcelona and the French border, as well as Madrid's Barajas airport people mover.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2004, were $21.3 billion Cdn and its shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F). News and information are available at www.bombardier.com.

(i) Trademark(s) of Bombardier Inc. or its subsidiaries

(i)(i) AVE is a trademark of RENFE

(i)(i)(i) Trademarks of third parties