Bombardier and Siemens Join Forces for Intercity Express Programme Bid

Bombardier and Siemens are joining forces with Angel Trains and international investment and advisory firm, Babcock & Brown, in a consortium, Express Rail Alliance , bidding to win the Intercity Express Programme (IEP) which will replace the existing High Speed Trains (HST) with a new generation of long distance trains by 2014, the companies announced today. The Intercity Express Programme is the most significant rolling stock investment initiative in the UK for over 30 years.

A key consideration of the Intercity Express Programme highlighted by Express Rail Alliance is the significant engineering resource required to deliver large volumes of new trains within relatively short timescales. Three unique train sets – diesel, electric and hybrid – are needed to fulfil the requirements of the IEP and no rail manufacturer currently has a suitable train design within an existing platform. For this reason, developing and supplying up to 2000 new cars to stringent delivery deadlines carries less risk with two manufacturers involved and sharing the major engineering resources required.

Colin Walton, Chairman of Bombardier Transportation UK explained: “A new high speed train platform typically has up to 800,000 engineering hours behind it. In the case of the IEP, a family of three train types must be developed simultaneously with the bulk of the engineering to be completed within 18 months of contract award. The programme has a potential requirement of approaching 400 engineers committed full-time to one project. Combining our resources will enable us to collectively deliver the best possible engineering back up for the IEP.”

The Express Rail Alliance consortium includes consortium partners Bombardier Transportation, Siemens Project Ventures, Angel Trains and Babcock & Brown. The financing of Express Rail Alliance will be procured on a competitive basis in line with HM Treasury’s guidance and offering best value for money.

Haydn Abbott, Managing Director of Angel Trains said: "Angel Trains brings to the table a wealth of expertise and financial ability. We have extensive experience in financing and procuring new trains and a strong engineering team and have invested a total of €5.3 billion in new trains. Together with our partners at Express Rail Alliance, we believe we have the best players in the field and are delighted to be a part of this consortium."

Christian Roth, managing director of Siemens Transportation Systems said: “A rail contract of this magnitude within such tight timescales has never been placed with a single party before. The Department for Transport requested a consortium approach, so the formation of Express Rail Alliance is in line with this strategy. By working in this partnership with flexible engineering resources and adopting best practice, Siemens and Bombardier as part of Express Rail Alliance can deliver the 'whole system, whole life' approach needed for this important project.”

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). News and information are available at www.bombardier.com.

About Siemens Transportation Systems
Siemens Transportation Systems employs around 900 people in the UK, providing expertise in rail systems and technology to the UK rail industry. In rolling stock, Siemens provides and maintains passenger trains for TransPennine Express, South West Trains, Heathrow Express, One Great Eastern, Northern Trains and Silverlink and Central Trains. With proven capability in rail infrastructure STS is delivering a major re-signaling project in the Portsmouth areas, traction power upgrades across the UK and new telecommunications systems in London and the west of England. It is also developing the GSM-R cab radio solution for the entire UK rolling stock fleet at the Rail Communication’s site in Poole, Dorset. For more information on Siemens Transportation Systems please visit www.siemenstransportation.co.uk

About Siemens UK
Siemens was established in the United Kingdom 164 years ago. The company employs 20,314 people in the UK, including about 6,500 in the manufacturing sector. Last year’s revenues were £3.5 billion, including exports of £580 million, and it spent almost £75 million on research and development. As a leading global engineering company, Siemens provides innovative solutions to help tackle the world’s major challenges, including the shortage of natural resources, increasing environmental care, and a growing demand for healthcare, mobility and security. Siemens has offices and factories throughout the UK, with its headquarters in Bracknell, Berkshire. The company’s global headquarters is in Munich, Germany. For more information, visit www.siemens.co.uk

About Siemens Project Ventures GmbH (SPV):
SPV is a fully owned subsidiary of Siemens Financial Services GmbH (itself a fully owned subsidiary of Siemens AG) and invests equity in infrastructure projects worldwide. SPV’s investments focus on the transportation, power, and telecommunication sectors. SPV currently participates in seven different projects with a total project volume of about USD 4 billion. For more information visit www.siemens.com/project-ventures

About Babcock & Brown
Babcock & Brown is a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments.

Babcock & Brown was founded in 1977 and is listed on the Australian Stock Exchange. Babcock & Brown operates from 28 offices across Australia, North America, Europe, Asia, United Arab Emirates and Africa and has in excess of 1000 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate finance. The company has established a funds management platform across the operating divisions that has resulted in the creation of a number of focused investment vehicles in areas including real estate, renewable energy and infrastructure.

For further information about Babcock & Brown please see our website: www.babcockbrown

About Angel Trains
Angel Trains is a leading lessor of railway rolling stock in the UK and in Continental Europe, with aggregate investments of over €6 billion. It has its group headquarters in London and other offices in Antwerp, Cologne, Derby, Madrid and Rome.

Angel Trains is a wholly-owned subsidiary of The Royal Bank of Scotland Group, one of Europe’s leading financial services groups.

Angel Trains Group has assets on lease in Austria, Belgium, Denmark, France, Germany, Italy, Luxembourg, the Netherlands and Switzerland, as well as the United Kingdom.

Angel Trains has over ten years' experience in financing and procuring new-build trains. Some of its key deals include the £708 million purchase of 350 Class 390 Pendolinos for Virgin Trains and £488 million investment in 508 Class 450 Desiros for South West Trains.

For Further Information Please Contact:
Americas

David Slack: + 1 450 441 3190

Germany, Austria
Birgit Stallmann: + 49 30 986 07 1136

Switzerland
Fiona Flannery: +41 44 318 29 91

Central and Eastern Europe, Russia
Natalia Kourakina-Lattner: + 49 30 986 07 1137

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

Benelux and France
Anne Froger: + 33 6 07 78 95 38

France
Jean-Pierre Hulot: +33 1 41 34 08 45

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