Bombardier to Build Light Rail Vehicles for South London, England.

SAINT-BRUNO, QUEBEC--(BUSINESS WIRE)--Nov. 25, 1996--BOMBARDIER INC.(TSE;ME BBD.A) Bombardier Prorail, a subsidiary of Bombardier Eurorail located in Wakefield, England, has been awarded a contract to manufacture 24 light rail vehicles (LRVs) for South London Croydon Tramlink in the United Kingdom. In addition to the contract worth 35 million pounds sterling (78 million Canadian dollars), Bombardier will also be responsible for maintaining the vehicles.

The order was signed as part of a 200-million-pound-sterling (448 million Canadian dollars) contract awarded to Tramtrack Croydon Limited (TCL), of which Bombardier Eurorail is a shareholder, for the implementation of a light rail transit system in the suburbs of South London. TCL was also granted a 99-year concession to operate and maintain the system.

"We are delighted to have been awarded this contract, which was obtained against fierce international competition," said Jean-Yves Leblanc, President and Chief Operating Officer of Bombardier's Transportation Group. "The order will draw on Bombardier Eurorail's extensive experience in the design and manufacture of light rail vehicles. The chief beneficiaries will be the system's users," he added.

TCL will design, build, operate, maintain and finance the 28-km system, which is due to open at the end of 1999. In addition to Bombardier Eurorail, the shareholders of TCL are system operator Centre West, construction firms Sir Robert McAlpine and Amey Construction, and finance partners 3i and the Royal Bank of Scotland. The terms of concession were prepared under the guidelines of the British government's Private Finance Initiative. The British government will contribute 125 million pounds sterling to the overall project cost, with the remaining 75 million pounds being provided by TCL.

Bombardier Eurorail is part of the Bombardier Transportation Group. Based in Saint-Bruno, Quebec, the Group is responsible for all of Bombardier's operations in the field of rail transportation equipment, offering a complete range of urban, suburban and intercity vehicles as well as turnkey rail transit systems worldwide. The leading manufacturer of passenger railcars in North America, it operates plants in La Pocatiere (Quebec), Thunder Bay and Kingston (Ontario), Barre (Vermont), Plattsburgh and Auburn (New York), and Sahagun (Mexico). Its European operations are carried out through Bombardier Eurorail which combines the activities of ANF-Industrie (France), BN Division (Belgium), Bombardier-Wien Schienenfahrzeuge (Austria), Bombardier Prorail (United Kingdom) and Waggonfabrik Talbot (Germany).

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 40,000 people. Bombardier's business volume totals 7.1 billion Canadian dollars, and more than 85 percent of the Corporation's revenues are made in markets outside Canada.

CONTACT: Bombardier Inc. (Transportation Group)

Francine Durocher Monin, 514/441-3190

514/441-4885 (FAX)