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Bombardier Joint Venture Awarded Contract for 40 High-Speed Trainsets in China
First Application of ZEFIRO Modular Concept Offers China New Dimension in Overnight Rail Travel
BERLIN, GERMANY--(Marketwire - Oct. 31, 2007) - Bombardier Transportation announced today that its Chinese joint venture, Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP), has received an order for 40, 16-car, high-speed trainsets (640 cars) from the Chinese Ministry of Railways (MOR). The order is valued at approximately 1 billion euros ($1.5 billion US) with Bombardier\'s share valued at approximately 413 million euros ($596 million US). BSP is a joint venture between Bombardier Transportation, Power Corporation of Canada and China South Locomotive and Rolling Stock Industry (Group) Corporation.

The contract was signed during today\'s ceremony in the presence of Mr. Zhang Shuguang, Deputy Chief Engineer of MOR and Director General of Transportation Bureau and Laurent Beaudoin, Chairman and CEO, Bombardier Inc. It is the largest single order for rail passenger cars placed at one time in Chinese rail history.

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Bombardier Joint Venture Awarded Contract for 40 High-Speed Trainsets in China
First Application of ZEFIRO Modular Concept Offers China New Dimension in Overnight Rail Travel
BERLIN, GERMANY--(Marketwire - Oct. 31, 2007) - Bombardier Transportation announced today that its Chinese joint venture, Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP), has received an order for 40, 16-car, high-speed trainsets (640 cars) from the Chinese Ministry of Railways (MOR). The order is valued at approximately 1 billion euros ($1.5 billion US) with Bombardier's share valued at approximately 413 million euros ($596 million US). BSP is a joint venture between Bombardier Transportation, Power Corporation of Canada and China South Locomotive and Rolling Stock Industry (Group) Corporation.

The contract was signed during today's ceremony in the presence of Mr. Zhang Shuguang, Deputy Chief Engineer of MOR and Director General of Transportation Bureau and Laurent Beaudoin, Chairman and CEO, Bombardier Inc. It is the largest single order for rail passenger cars placed at one time in Chinese rail history.

The new electric-multiple-unit (EMU) trainsets will be capable of speeds up to 250 km/h. Twenty of the EMU trains will be specially designed for overnight service and fitted with sleeping berth interiors. These trains will feature the world's first EMU sleepers cars capable of travel up to 250 km/h and will be developed utilizing core elements of the BOMBARDIER ZEFIRO family of high-speed and very high-speed products. The new 16-car trains (at an overall length of 430 m) represent a sophisticated mix of new modular concepts and proven technology in a unique application. The high-speed sleepers will offer overnight travellers an advanced level of comfort, convenience and trip-time efficiency in a region where long-distance train trips are common.

The remaining 20 EMU trains will be upgraded, 16-car versions of successful eight-car trains now being delivered to the MOR as part of orders placed in May 2005 and October 2004.

Bombardier's ZEFIRO family of trains specifically address the need for additional flexibility in next-generation rolling stock. ZEFIRO train designs introduce new methods for improving operating efficiency, capacity, interoperability and true cross-border travel.

Bombardier Transportation President Andre Navarri said the contract further strengthens Bombardier's presence in the high-speed rail market and underscores its leadership in China.

"It is always good news to sign a contract of this magnitude," said Navarri, "but especially when the order is based on a customer's prior positive experience with our products and trust in our technology leadership. China is one of the most important rail markets in the world, and we are pleased to be continuing our positive relationship wth the MOR."

Stephane Rambaud-Measson, President, Bombardier Transportation Mainline and Metros Division, said "This order is clear recognition of the high level of reliability reached by Bombardier high-speed trains already in operation in China, as well as of our ability to efficiently manage a complex localisation project in a new and very demanding market. All Chinese Bombardier high-speed trains are manufactued at our joint venture in Qingdao with very high levels of contribution from the local rail industry and its expertise."

Jianwei Zhang, President and Chief Country Representative, Bombardier China, said Bombardier's growing success is based on consistent market focus and a product portfolio that is well-suited to the country's vibrant transit sector. "Bombardier has a long-term commitment to this market, " said Zhang. "We offer one of the broadest product portfolios in the world and that is apparent in the spread of contracts we have for high-speed trains, locomotives, propulsion equipment, commuter trains, automated transit systems, metro cars, signalling systems and other products. This is a priority market, and our focus here is showing results."

The new high-speed EMU trains will be manufactured at BSP production facilities in Qingdao, China. BOMBARDIER MITRAC propulsion systems for the trains will be jointly produced by Bombardier CPC Propulsion System Co. Ltd., a Bombardier joint venture based in Changzhou, and Bombardier facilities in Europe. MITRAC propulsion systems are included in more than 23,000 rail vehicles worldwide.

First deliveries of the new trains are scheduled for February 2009. Delivery of the final train is expected August 2010.

Note to editors:

Useful company background facts and contact details follow.

Background facts and figures

Bombardier Recent Rail Contracts in China
Other recent contracts awarded to Bombardier and its Chinese partners:

- Signalling system for high-speed rail line between Wuhan and Guangzhou (August 2007)

- Automated People Mover System for the City of Guangzhou (May 2007)

- 192 metro cars with propulsion & controls equipment for Shanghai Metro Line 7 (May 2007)

- 500 electric freight locomotives for the Ministry of Railways (February 2007)

- 306 metro cars with propulsion & controls equipment for Shanghai Metro Line 9 (Nov. 2006)

- Propulsion and controls equipment for 192 cars on Beijing Metro Line 4 (July 2006)

- 40 automated rail cars for Beijing Capital International Airport Link (March 2006)

About Bombardier in China

Including its three joint ventures, Bombardier currently employs 2,500 people in China. In addition to its rail transportation operations, Bombardier is also the number one supplier to the Chinese regional aircraft market with an installed base of more than 30 aircraft in operation with six airlines. It is the top-ranked supplier of business aircraft to China as well. Bombardier's longstanding business relationship with China began 50 years ago.

About Bombardier Transportation

Bombardier Transportation has its global headquarters in Berlin, Germany with a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide. The Group offers the broadest product portfolio and is recognized as the leader in the global rail sector.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2007, were $14.8 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com.

BOMBARDIER, ZEFIRO and MITRAC are trademarks of Bombardier Inc. or its subsidiaries