Bombardier to Receive Order for Intercity Trains in Switzerland.

Business Editors

MONTREAL--(BUSINESS WIRE)--June 26, 2001

(TSE:BBD.A.)(TSE:BBD.B.)

Bombardier Transportation is pleased with the decision of the Board of Directors of the Swiss Federal Railways SBB to approve the award of an order to a Bombardier-led consortium for the supply of 10 seven-car intercity tilting trains ICN.

This order, which carries an option until the end of October 2001 for an additional 10 trains, is estimated at approximately $187 million Cdn (143 million Euro). Including the option, the total contract is valued at about $357 million Cdn (273 million Euro). Final agreement is expected shortly.

Bombardier will be responsible for the production, assembly and commissioning of the vehicles; Alstom will be responsible for the production of the bogies and the tilting technology. Bombardier's share of this contract is about 80%, which represents $153 million Cdn (117 million Euro) and $289 million Cdn (221 million Euro) respectively.

These 20 intercity trains are scheduled to be in operation by the end of 2004 mainly between Geneva-Lausanne-Bienne-Delemont and Basle as well as between Bienne and Zurich. The carbodies will be produced at the Hennigsdorf plant, Germany, and the trains will be assembled at the Pratteln, Switzerland, manufacturing site. Some 80 new jobs will be created for a period of four years in Pratteln; where more than 200 people are already working on the completion of the first SBB series of 24 tilting trains ICN, the execution of the recently awarded order also from SBB of 70 double-decker coaches IC2000 and the completion of the 6 Cobra Trams pre-series for the City of Zurich.

Commenting on this order, Bombardier Transportation President and Chief Operating Officer Pierre Lortie said "the decision of the SBB to place an additional order for the ICN tilting train is very gratifying for our whole organization. It is tangible testimony to the quality of the train and the expertise we proudly provide to satisfy our customers. We recognize that Switzerland possesses a concentration of world-class expertise in the railway industry and we intend to focus on the needs of this market as well as work diligently to strengthen its export capabilities and know-how," he added.

Bombardier Transportation now employs some 1,200 persons in Switzerland and operates another Swiss production facility in Villeneuve, where 11 NINA regional trains for the Bern suburban network and bogies for the Bombardier high-floor light rail vehicle for Cologne are currently being manufactured. As soon as the acquisition of Adtranz was concluded last May, Bombardier Transportation confirmed that both its Propulsion and Controls worldwide headquarters as well as its Locomotives and Freight worldwide headquarters will be located in Zurich. Other activities include a centre of engineering expertise for the design of bogies, research and product development of high-powered propulsion equipment, maintenance for the private operator BLT, services and signaling.

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 signaling 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. Bombardier's revenues for its fiscal year ended Jan. 31, 2001 totalled $16.1 billion and more than 90% were generated outside Canada.

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