Bombardier's Maintenance Contract with the City of Ottawa is Extended for a Three-Year Period

Bombardier Transportation announced today that it has received a three-year extension for the maintenance of the three Talent Diesel Multiple Unit (DMU) trainsets for the City of Ottawa, operating under the name Capital Railway. The value of the contract is approximately $2.7 million US ( $3.3 million Cdn) and is scheduled to begin in May 2005.

This contract is a key part and indicator of the rapidly expanding services business in North America and has been extended due to Bombardier’s stellar performance during the last three years (99.84% on time performance in 2004).

Mike Hardt, Vice-President, Services, Bombardier Transportation, North America, commented: “This new contract represents a current and future growth opportunity for Bombardier in the North American services market. It also emphasizes the excellent collaboration which has been established with Capital Railway over the years. We applaud the city of Ottawa in its commitment to ever expanding passenger rail service.”

This new contract also illustrates a business development model that Bombardier’s passenger railcar Services business is using to expand its presence in the North American services market. The Bombardier Services business today offers a full portfolio of outsourced operations and maintenance services to rail operators, and is expanding its portfolio to include refurbishment and overhaul services as well as material solutions, such as inventory management, spares management, procurement and other administrative functions.

The vehicles are the German-built Talent Diesel Multiple Units with three cars per trainset. Two cars are diesel powered to the rail through a hydraulic transmission. The trainsets are a modern design, sleek, quiet, with wide doors and wide aisles, panoramic windows and spacious comfortable seats. The interior is open, allowing easy access between cars.

Bombardier’s comprehensive services portfolio and extensive experience translate into a wide array of benefits for customers, including increased fleet availability and reliability, as well as lower life cycle costs, through the application of a balanced preventive maintenance approach.

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, 2004 were $15.5 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.

For information:
Hélène V. Gagnon
Senior Director, Communications
North America
+1 450 441-8156