Bombardier to Modernize 104 Locomotives for Green Cargo Largest Ever Modernization Contract in Sweden

Bombardier Transportation has been awarded a major modernization contract by the Swedish freight company Green Cargo. The order relates to the modernization of 42 electric locomotives type Rc2 and 62 diesel locomotives type T44.

The contract represents a value of 115 million euros ($ 153 million US) and is the largest ever vehicle modernization contract in Sweden. It consists of the life time extension of the assets by 15 years, the ability for multiple-unit operation (i.e. the same driver can connect the Rc2 and the T44 locomotives, allowing for improved operational flexibility), enhancement of the driver’s cab, reduction of the energy consumption, higher fleet availability and a reduction of the maintenance cost. The project will be carried out at Bombardier’s workshops in Västeras (Sweden) and Randers (Denmark), starting in June 2007, with the prototypes scheduled to be delivered later next year and the remaining units shipped over the next 6 years.
Bombardier has been selected by Green Cargo because it has the reputation of always standing by its clients, the robustness and size of its operations and its flawless project execution – in addition to Bombardier’s commitment to the Swedish market, with 6 of its 11 “Centres of Competencies” located in this country. Bombardier Transportation Sweden also has vast experience in sales, engineering and servicing to 35 countries worldwide. It has delivered more than 5100 vehicles (of which 32% for export) and more than 590 computer based interlocking systems to 50 customers in 20 countries.

Tomas Andersson, CEO, Bombardier Transportation Sweden said: “These orders confirm that our modernisation offer is very strong. It is also a great example of how a company can effectively modernize its locomotive portfolio and thus expand both its technical and economical lifetime.”

Jan Sundling, CEO at Green Cargo said: “Our ambition is to create a competitive and environmentally friendly rail road logistics, and to achieve that we needed to be creative. For a cost which is only 30 percent of buying new locomotives, we get the traction needed by our customers for the next 20 years.”

Rik Dobbelaere, President Bombardier Transportation Services, adds: “Improved efficiency is part of both Green Cargo’s and Bombardier’s commitment to sustainable environmental transport solutions. It’s one of the many elements we have in common and that in itself already creates a lasting bond between the two companies.”

Note to editors:
Useful company background facts and contact details follow.

Background facts and figures

About Green Cargo
Green Cargo is a transport and logistics company with rail transport as its base. The company is responsible for 70% of freight transport by rail in Sweden. With partners, it reaches all of Europe. Green Cargo offers transports marked with the Good Environmental Choice eco-label from the Swedish Society for Nature Conservation. The Swedish state owns the Green Cargo Group, which employs 3150 persons and turns over about SEK 5.9 billion annually. Subsidiaries: TGOJ Trafik AB, NTR AB, and Green Cargo Road & Logistics A/S (Denmark). Green Cargo owns 67% of Hallsbergs Terminal AB and 45% of CargoNet. For more information, please refer to Green Cargo’s website: www.greencargo.com.

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.

Bombardier is a trademark of Bombardier Inc. or its subsidiaries.

For Further Information Please Contact:
Americas
David Slack: + 1 450 441 3190

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

Sweden
Tomas Andersson: + 46 70 349 18 32

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