Bombardier announces unaudited results for the year ended January 31, 1996.

MONTREAL--(BUSINESS WIRE)--March 12, 1996--BOMBARDIER INC. (TSE, ME: BBD.A) Bombardier Inc. announced today its unaudited financial results for the fiscal year ended January 31, 1996. Consolidated revenues totalled $7.1 billion, compared with $5.9 billion for the year ended January 31, 1995. Net income reached $308.8 million, or $0.92 per share, as against a net income of $241.9 million, or $0.73 per share, for the preceding year.

However, the Corporation deemed it prudent to reflect the decline in value of the investment in share units of Eurotunnel by a write-down of $231.4 million or $155.0 million after income taxes, leaving a balance of $50.0 million in the balance sheet. This amount represents the 6.2 French francs market value as at January 31, 1996. This devaluation has reduced net income for the year to $153.8 million, or $0.45 per share. -0-

The highlights are as follows:

                                        Year ended January 31,
                                          1996         1995
                                             (unaudited)

Revenues (billion)                        $    7.1   $    5.9
Net income, before write-down (million)   $  308.8   $  241.9
Net income per common share, before
write-down (dollars)
     Basic                                $   0.92   $   0.73
     Fully diluted                        $   0.89   $   0.69
Net income, after write-down (million)    $  153.8   $  241.9
Net income per common share, after
write-down (dollars)
     Basic                                $   0.45   $   0.73
     Fully diluted                        $   0.45   $   0.69
Average number of common
shares outstanding (million)                 333.0      330.3

Consolidated revenues for the fourth quarter of 1995-96 totalled $2.7 billion, compared with $2.3 billion for the quarter ended January 31, 1995. The audit of the accounts of Waggonfabrik Talbot GmbH, acquired on April 3, 1995, has been completed. The 17 percent increase in revenues for the quarter ended January 31, 1996 compared to the same period last year, is due in part to the consolidation of these accounts.

For the quarter, net income, before write-down of the investment in share units of Eurotunnel, reached $104.8 million, or $0.31 per share, as against net income of $77.1 million, or $0.23 per share, for the same quarter last year. After write-down, net loss stood at $50.2 million, or $0.16 per share, for the quarter ended January 31, 1996. -0-

                                            Three months ended
                                                January 31,
                                            1996         1995
                                               (unaudited)

Revenues (billion)                          $    2.7   $   2.3
Net income, before write-down (million)     $  104.8   $  77.1
Net income per common share, before
write-down (dollars)
     Basic                                  $   0.31   $  0.23
     Fully diluted                          $   0.29   $  0.21
Net income (net loss), after write-down
  (million)                                 $  (50.2)  $  77.1

Net income (net loss) per common share, after
write-down (dollars)
     Basic                                  $  (0.16)  $  0.23
     Fully diluted                          $  (0.15)  $  0.21

Commenting on the year's results, Chairman and Chief Executive Officer Laurent Beaudoin noted that "the Corporation has increased its consolidated revenues by 20 percent thanks to higher sales in all segment of activities. Moreover, all segments have contributed to the 28 percent increase in net income before devaluation. However, a weaker performance than expected at Learjet, has impacted the contribution of aerospace to net income."

"The write-down of our investment in share units of Eurotunnel, stated Mr. Beaudoin, had no bearing on our cash position. Our balance sheet is very strong and the Corporation is well positioned to pursue its growth and increase its profitability during the present fiscal year". The Company will publish its detailed financial results for the year ended January 31, 1996, in a press release to be issued next April 23.

Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the fields of transportation equipment, civil and military aerospace, motorized consumer products and services. The Montreal-based corporation operates plants in Canada, Mexico, the United States, Austria, Belgium, Finland, France, Germany and the United Kingdom, employing 40,000 people.

CONTACT: Bombardier Inc.

Michel Lord, 514/861-9481