Bombardier Signs a Contract with Dalian for the Supply of 500 Freight Electric Locomotives to China

Bombardier Transportation has signed a contract with China’s Dalian Locomotives and Rolling Stock Co., Ltd. to supply 500  freight electric locomotives to the Chinese Ministry of Railways (MOR). The total contract is valued at 1.1 billion euros ($ 1.4 billion US), and Bombardier’s share is approximately 370 million euros ($ 480 million US).

The locomotive will reach an operation speed of 120 km/h, with a power of 9600 kw. This advanced freight locomotive will be based on the successful Bombardier Kiruna locomotive, the most powerful locomotive in the world today. Bombardier will supply technical design and support and, also state-of-the-art Bombardier MITRAC propulsion and control equipment.

The first series of the propulsion and controls equipment will be manufactured at Bombardier sites in Europe. Thereafter, production will be shared by Bombardier’s joint venture company in China, Bombardier CPC Propulsion Systems Co. Ltd., and Dalian Locomotives and Rolling Stock Co., Ltd. Delivery of the locomotives is scheduled to begin in 2009 and continue until 2011.

Commenting on the announcement, André Navarri, President of Bombardier Transportation, said: "We are very proud to support our customers MOR and Dalian in developing this new freight electric locomotive for China based on Bombardier design. Being awarded this contract reinforces our already fruitful business relationships in China and is a further demonstration of the confidence that rail operators worldwide have in Bombardier products.”

Jianwei Zhang, President and Chief Country Representative, Bombardier China, added: “Through its participation in a number of challenging railway projects in China, Bombardier has earned an excellent reputation and has gained a great understanding of the specific needs of the Chinese railway market. This order confirms Bombardier’s prominent position in the Chinese market. By providing cutting-edge design and technology from Europe, Bombardier is contributing to the reliability and efficiency of China’s rail capability.”

“This is the next step into a fascinating rail market,” commented Edmund Schlummer, President Locomotives, Bombardier Transportation. “We are delighted to deliver the best-fitting design for our customer.”

Note to Editors:

Background of Bombardier’s work in China
Today, Bombardier Transportation is a key player in China’s rail industry. Recent contracts awarded to Bombardier and its joint ventures in China include an order of supplying 306 metro cars for Shanghai Metro Line 9 awarded in October 2006;  a deal for ART Mark II automated rail cars for the Beijing Capital International Airport Link awarded in March 2006; a high-speed train maintenance center and 20-year services contract with China’s Ministry of Railways (MOR) in January 2006; an Automated People Mover system for the Beijing Capital International Airport in May 2005; 40 eight-car, high-speed trainsets for the MOR in May 2005 and October 2004, and 361 high-altitude passenger cars for the MOR in February 2005.

Including its joint ventures, Bombardier currently employs 2,500 people in China. In addition to its rail transportation operations, Bombardier is 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 also the top-ranked supplier of business aircraft to China. Bombardier’s longstanding business relationship with China began 50 years ago.

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, 2006 were $14.7 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.

MITRAC is a  trademark of Bombardier Inc. or its subsidiaries

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