Bombardier Awarded $208-Million Maintenance Services Contract By Spanish National Railways

A consortium comprising Bombardier Transportation and Patentes Talgo was awarded a $433-million Cdn (258 million Euros) services contract by the Spanish National Railways (RENFE). Bombardier's share in the contract is approximately $208 million Cdn (124 million Euros). Under the contract, Bombardier and Patentes Talgo will maintain RENFE's fleet of 16 AVE* 102 very high-speed trains for a period of 14 years.

During the announcement, Rik Dobbelaere, President, Services, Bombardier Transportation, said "This award, which encompasses one of the most advanced very-high speed trains in the world, contributes to consolidate Bombardier's leadership position in the services area of our business."

Within this services contract Bombardier will be responsible for the preventive and corrective maintenance of the train power heads, power supply, signalling and propulsion system and auxiliaries.

Bombardier, together with Talgo, is currently producing RENFE's fleet of 16 AVE 102 trains which will be used on Spain's high-speed line which runs between Madrid, Barcelona and the French border town of Le Perthus. Deliveries of the trains started in October 2003 and are scheduled to end in December 2004. Bombardier Transportation's scope of supply within the vehicle production comprises of the development and manufacture of the lightweight very-high-speed power heads, including all electrical equipment, propulsion system and bogies. Bombardier also participates in the final assembly and testing of the trainsets.

The characteristic shape of the AVE 102 power head was developed in a wind tunnel. Its special design decreases the pressure waves that occur when a train passes through tunnels and reduces the effect of crosswinds. Although certified for a maximum speed of 330 km/h (per contractual request) the AVE 102 still holds considerable reserves: in December 2002 the pre-series train, developed by Bombardier and Talgo, set the railway speed record in Spain, reaching a top speed of 362 km/h.

About Bombardier
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2003 were $21.2 billion Cdn and its shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F). News and information are available at www.bombardier.com.

N.B. Fiscal year 2002-03 revenues have been restated following the sale of the recreational products business.

* AVE is a trademark of RENFE

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For information:
Lydia Dufresne
Media Relations
+1 450 441-8130