Bombardier and Deutsche Bahn AG Sign Framework Agreement Worth up to 1.5 Billion Euros

Mehdorn: Large Investments in Coaches Will Bolster DB's Ability to Compete for Local Transportation Tenders As Well As Sending an Economic Message

New Vehicles First to be Equipped with Driven Cab Cars

Bombardier Transportation and Deutsche Bahn (DB) have signed a framework agreement for 800 double-deck coaches with a total volume of up to 1.5 billion euros ($2.1 billion US). With the new generation of vehicles, Deutsche Bahn will actively compete for tenders in the local rail transport market in 2009.

"In particular in these difficult economic times, we have decided to invest in the future. This decision is also intended to communicate an economic message. It will enable us to make outstanding transport bids in the regional transportation market and offer convincing quality. Economical and powerful transportation demands a modern fleet of energy-saving vehicles that can be used in flexible combination with one another," says DB CEO Hartmut Mehdorn."

André Navarri, President of Bombardier Transportation, explains: "The new generation of double-deck coaches is an outstanding example of our continuous product innovation here at Bombardier Transportation. It is now possible to combine double-deck coaches with multiple-unit technology. This is the largest framework agreement for vehicles that DB has ever awarded to a single supplier. We are very pleased by this trust."

The Chairman of the Management Board of DB Regio, Ulrich Homburg, underscores the importance of flexible vehicles for economical operations. "For the first time ever, we will have powered double-deck coaches in our fleet. Individual coaches, driving trailers or trailer coaches can be added as well, depending on what the trains are being used for in the respective local transportation networks. In addition, the vehicles are compatible with other generations and will thus create cost benefits in operation," says Homburg. "The added quality and comfort for customers will furthermore improve our position in future local transportation tenders and help to safeguard jobs in the DB Group."

Since the Rail Reform in 1994, the year of the German railway reform in which Deutsche Bahn AG was founded, DB has purchased over 1,600 double-deck coaches. DB Regio currently has more than 2,000 double-deck coaches in its fleet. With a 98% reliability rating in operation, the vehicles enjoy great popularity with customers and orderers. Their interior can be outfitted to include a wide variety of comfort features. Standard equipment includes power outlets at the seats, first- and second-class seating areas, ergonomic seats, customer information systems and much more.

Note to Editors:

Photo: Next generation double-deck coaches

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 commercial 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, 2008, were $17.5 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 is a trademark of Bombardier Inc. or its subsidiaries.

For information:

Americas
David Slack: +1 450 441 3190

Germany, Austria, Switzerland, Central and Eastern Europe
Heiner Spannuth: +49 30 986 07 1134

Nordic Countries
Jonny Hedberg: +46 8 681 5062

Russia
Alexander Bocharov: +7 495 775 1830

UK, Ireland, Australia, New Zealand, other countries
Neil Harvey: +44 1332 266470

Benelux
Guy Hendrix: +32 2289 7341

France
Anne Froger: +33 6 07 78 95 38

Spain, Portugal, Italy, Greece, Turkey, India
Luis Ramos: +35 1 919 693 728