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MONTREAL — Bombardier Transportation announced in a press release that it has been awarded a contract valued at approximately $108 million Cdn ($125 million Australian) from the Victorian State Government and V/Line to provide passenger rolling stock for regional services in Victoria, Australia. This is a follow-on order to a contract awarded to Bombardier Transportation in November 2001 and includes the manufacture of nine two-car diesel multiple units (DMUs) and a 15-year maintenance agreement. This brings the total contract value to approximately $464 million Cdn ($535 million Australian), representing a total of 38 two-car DMUs and an agreement for maintenance of these trains for a period of 15 years. Deliveries of the 38 trains are scheduled to take place from late 2004.

The state-of-the-art Vlocity 160 stainless steel trains have been designed in Australia using Bombardier Transportation’s local engineering expertise and global know-how. Bombardier Transportation’s facility in Derby, UK will provide the bogies; its Vasteras, Sweden site will supply the train control system. These trains, which will be manufactured at Bombardier’s Dandenong facility in Victoria, will feature significant levels of Australian content.

Commenting on the announcement, Dan Osborne, Chief Country Representative of Bombardier Transportation in Australia stated: “This partnership with the Victorian State Government and V/Line will help provide regional Victoria with a world-class rail vehicle. By working with local suppliers, Bombardier Transportation shows its commitment to supporting the local rail manufacturing industry.”

Bombardier Transportation’s Dandenong plant has been manufacturing trains and trams for Australian railways for over 25 years. Bombardier Transportation, which employs over 200 people in Australia, is currently working on manufacturing or service contracts in Victoria, Queensland, New South Wales and Western Australia.

Bombardier Transportation is the global leader in the rail equipment manufacturing and servicing industry. Its wide range of products includes passenger rail cars and total transit systems. It also manufactures locomotives, freight cars, propulsion & controls and provides rail control solutions.

Bombardier Inc., a diversified manufacturing and services company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montreal, Canada, the Corporation has a workforce of some 80,000 people in 24 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002 stood at $21.6 billion Cdn. Bombardier trades on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).