Bombardier Wins A $1.49 Billion Order for Electric Multiple Units in the UK.

Business Editors

MONTREAL--(BUSINESS WIRE)--March 11, 2002

Bombardier Transportation (TSE:BBD.A.)(TSE:BBD.B.) has confirmed an additional order with Govia, the UK-based holding company jointly owned by the Go-Ahead Group plc and Keolis SA of France, for the manufacture of a further 460 Electrostar electric cars to replace slam door trains on key South Central routes. The contract also includes a 20-year material supply and technical support agreement for the Govia fleet of 700 Electrostar cars. The complete order is valued at approximately $1.49 billion Cdn (657 million Pounds Sterling), which includes $848 million Cdn (375 million Pounds Sterling) for the vehicle manufacturing and $638 million Cdn (282 million Pounds Sterling) for the material supply and technical support. The order will be financed by Porterbrook Leasing Company Ltd., part of Abbey National Treasury Services plc.

The news was announced today at an event held in London, in which Mr. J.R. Andre Bombardier, Vice Chairman, Bombardier Inc., Rt. Hon. Mr. John Spellar, Minister of Transport, UK, Mr. Richard Bowker, Chairman, Strategic Rail Authority and Mr. Keith Ludeman, Chief Executive, Govia participated.

This announcement is the second Electrostar order received from Govia for the South Central franchise and complements the initial order of approximately $449 million Cdn (approximately 199 million Pounds Sterling) for 240 Electrostar units announced in September 2001. This contract brings the total number of Electrostar cars ordered by Govia to date up to 700 units at a total cost of approximately $1.94 billion Cdn (856 million Pounds Sterling), including services, and is the largest UK new build order received by Bombardier Transportation to date. The Electrostar trains will be assembled at Bombardier Transportation's production facility in Derby, deliveries expected to commence summer 2002.

Keith Ludeman, Chief Executive, Govia said: "We aim to replace approximately 600 Mark 1 slam door carriages by December 2004. It is clearly important that we had assurances regarding the timely delivery of new trains and Bombardier were able to provide these."

Rik Dobbelaere, President of Bombardier Transportation, Intercity Trains said: "I am delighted that Govia is once again showing confidence in our Electrostar product. Electrostar EMUs are already operating very successfully and achieving high reliability figures in the south of England. We are looking forward to the successful introduction of many more Electrostars across the UK."

The material supply agreement covers all 700 vehicles for 20 years and includes the supply of all consumable and repairable parts associated with the Electrostar trains. Bombardier Transportation, as part of the technical agreement, will also provide on-site technicians at Govia's Selhurst and Brighton depots to assist the operator with the Electrostar maintenance.

Andrew Lezala, President of Bombardier Transportation, Services said: "We are very proud of this order, Govia are a discerning client and for them to have chosen Bombardier Transportation to provide support to their trains for the next 20 years is an excellent endorsement."

The air-conditioned Class 377 Electrostar cars propelled by the latest generation of Bombardier IGBT electric propulsion equipment can travel at a top speed of 160 km/h and have modern audio and visual passenger information systems linked to the Global Positioning System. 15 4-car trainsets will be dual AC/DC voltage, the remaining 167 3- and 4-car sets (640 cars) being single DC voltage. Each car will also be fitted with a closed-circuit television surveillance system for enhanced internal security, allowing drivers to view car interiors whilst the train is stationary.

The family of Electrostars have become the new generation train of choice for UK operators. Bombardier Transportation has received to date orders for 1,206 Electrostar cars, of which over 300 are in passenger service.

Bombardier has a major presence in the UK, employing close to 12,000 people across the country, of which 5,200 work for Bombardier Transportation. The Derby site, where the Electrostars will be assembled employs some 1,350 of these staff. As well as manufacturing capability at the Derby and Wakefield sites, the company has refurbishment, maintenance and overhaul centres at Crewe, Central Rivers, Chart Leacon, Ilford, Croydon and 13 other locations throughout the UK.

Bombardier Transportation is the global leader in the rail equipment, manufacturing and servicing industry. Its wide range of products includes passenger rail cars and complete rail transportation systems. It also manufactures locomotives, freight cars, propulsion & controls and provides signalling equipment and systems.

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 79,000 people in 24 countries in the Americas, Europe and Asia-Pacific and its revenues for its fiscal year ended Jan. 31, 2001 totalled $16.1 billion Cdn.

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Editors Notes

Porterbrook Leasing Company Limited ("Porterbrook") is a leading player in the UK rail leasing market. Porterbrook has a rolling stock fleet of over 5,500 vehicles on lease or on order, which includes about 4,000 passenger vehicles. These are supplied under operating leases to 18 of the 25 train operating companies (TOCs) within the UK. The company also provides ongoing train and tram maintenance services. Porterbrook has been highly successful in winning new train orders since privatisation, with over 1.3 billion Pounds Sterling in new business won - investing in over 1,100 new passenger vehicles and 1,100 new freight locomotives and wagons, and in the refurbishment of much of its in-fleet equipment. In April 2000 the Porterbrook group of companies was acquired by Abbey National Treasury Services plc, part of Abbey National Group.