Bombardier Wins a 69 Million Euro Contract for 17 Trams and a Traffic Management System for the City of Palermo, Italy

Bombardier Transportation, as part of a consortium led by SIS, announced today that it has won an order from the public transport authority of Palermo (AMAT) in Italy for the delivery of 17 bi-directional Bombardier FLEXITY Outlook trams and a Bombardier CITYFLO 150 traffic management system for the city’s new 15-km Light Rail Transit system. The overall contract is valued at approximately 192 million euros ($242 million US), with Bombardier’s share amounting to some 69 million euros ($87 million US). Deliveries of the vehicles are scheduled for 2009. Bombardier’s scope of work also involves a 4-year maintenance contract for the 17-vehicle fleet.

The design and manufacture of the three new lines of Palermo’s new Light Rail Transit system was awarded by AMAT to a group comprised of nine companies led by the Italian civil contractor SIS. The first two lines of the new system are expected to enter into service in December 2009 and the third line in April 2010.

The FLEXITY Outlook tram for Palermo is based on a proven modular technology developed by Bombardier that features a 100% low-floor interior while using conventional wheel-set bogies offering excellent riding behaviour and increasing passenger comfort. 32.5 metres long and 2.4 metres wide, each tram consists of 5 modules. The vehicles also include the Bombardier MITRAC propulsion and control system offering the highest reliability and featuring the latest electronic technology. For heightened passenger comfort the new trams are equipped with air conditioning and have designated wheel-chair areas.

Commenting on the order Roberto Tazzioli, Chief Country Representative for Bombardier Transportation in Italy, said: “This contract is another positive step in Bombardier’s successful development of mass transit solutions in Italy.  We are committed to the Italian market and will continue to offer our world-leading mass transit traffic management and vehicle solutions to its cities.

Walter Grawenhoff, President, Light Rail Vehicles, Bombardier Transportation, declared: “This order for the city of Palermo demonstrates once again the trust in Bombardier’s engineering capacity and the continual success of the Bombardier FLEXITY tram family”.

Transport authorities worldwide have already ordered over 1,500 Bombardier FLEXITY trams and light rail vehicles, of which more than 1,000 are in successful revenue service. Vehicles of the same FLEXITY Outlook family are in service in the cities of Linz (Austria), Lodz (Poland) and Eskisehir (Turkey) and have recently been put in service in Geneva (Switzerland) and Brussels (Belgium). They have also been ordered by the cities of Marseille (France), Valencia (Spain) and Innsbruck (Austria).

Bombardier Transportation is one of the most important manufacturers of rolling stock in Italy and continues to be involved in some of the country’s most important rail projects through Trenitalia’s E405, E412 and E464 locomotives, the high-speed train ETR500 (as a member of the Trevi consortium), the Rome-Fiumicino airport people-mover and Milan’s Eurotram vehicles.

The group employs some 600 people in Italy. 450 people are employed in Vado Ligure, the plant set up in 1905, where more than 1,400 locomotives have been manufactured to date. 150 people work at its engineering centre in Rome, dedicated to the development of rail control solutions, signalling equipment and rail traffic management systems.

Bombardier Transportation has its global headquarters in Berlin, Germany and operations in over 60 countries. It has an installed base of approximately 97,000 cars and locomotives, primarily in Europe, the world’s largest rail market. The company 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, 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

Bombardier, FLEXITY, MITRAC and CITYFLO are trademarks of Bombardier Inc. or its subsidiaries.

For information
Ulrich Bieger (Germany, Austria, Switzerland, Benelux, Eastern Europe and Russia)
+ 49 30 986 07 1135

Hélène V. Gagnon (North America)
+ 1 450 441 8156

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

Jean-Pierre Hulot (France)
+ 33 1 53 45 84 69

Luis Ramos (Spain, Portugal, Italy and India)
+ 35 1 919 693 728