World-Premiere: Bombardier Introduces First EUROPEAN STANDARD Train Control System.

Business Editors

MONTREAL--(BUSINESS WIRE)--April 29, 2002

Bombardier Transportation (TSE:BBD.A.) (TSE:BBD.B.), together with its customer Swiss Federal Railways (SBB), has today pioneered the world's first commercial operation of a state-of-the-art European rail traffic management system (ERTMS) on the railway line Olten - Luzern, Switzerland. The new standard will considerably boost efficiency of rail traffic systems leading to higher capacities, faster traffic and lower operating costs of train systems.

The new standard ERTMS Level 2 revolutionises rail systems specifically on a European level by easing cross-border traffic. A great number of different systems for traffic management and automatic train control are currently in use in Europe. Trains crossing several countries require a time-consuming change of locomotive and driver at borders, or the trains have to be equipped with the systems of several countries.

"This is a historical event in the sense that the SBB project is the first commercially viable ERTMS Level 2 system in the world to begin passenger service. Thus we have now taken over the leadership in ERTMS technology", explains Javier Rion, President, Rail Control Solutions, Bombardier Transportation.

Pierre-Alain Urech, Chief of the Infrastructure Division at SBB, acknowledged the good performance of the Bombardier Team: "Pioneering work is a challenge to all participants. Swiss Federal Railways are pleased that Bombardier could give the go-ahead to ERTMS Level 2 in Switzerland."

The equipment for the new system on a 35-kilometre railway line between Olten and Luzern includes radio block centre, radio system, on board equipment for 59 locomotives and some 200 positioning balises. The radio transmission system which makes optical signals obsolete uses GSM-R.

With the ERTMS Level 2 system, radio communication replaces the traditional trackside signals, which allows considerable savings in infrastructure and maintenance costs. The system enhances safety considerably by monitoring train speed and, if necessary, intervening automatically. This allows higher speeds and shorter headways and thus increases capacity. The traffic management system processes and sends information and instructions for the train driver directly onto a monitor in the drivers cab via radio communication.

Bombardier Transportation, Rail Control Solutions offers a complete system portfolio that includes integrated operation control systems, electronic and relay interlocking, automatic train protection and operation, radio-based Rail Control and Signaling systems and wayside equipment. It is currently working on several other ERTMS projects in Taiwan, the Netherlands, Germany, Spain and Italy.

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 services company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montreal, Canada, the Corporation has a workforce of some 80,000 people in 24 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002 stood at $21.6 billion Cdn. Bombardier trades on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).

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