Montréal, April 07, 2003 /Bombardier Transportation has received contracts from Metronet for the supply of rolling stock, signalling, maintenance and project management for the modernisation of London’s Underground system. The value of the contracts is approximately £3.4 billion ($7.9 billion Cdn/5.0 billion Euros) over 15 years.

The turnkey contracts include the project management and the supply of 1,738 metro cars and new signalling systems for the Victoria Line and Sub-Surface Lines, together with the maintenance of the rolling stock. In the early stages of the project, Bombardier will commence re-signalling work, refurbish the existing District Line rolling stock and build two pre-production trains for the Victoria Line. The new metro car fleets will be built in Bombardier’s facility in Derby, United Kingdom, between 2008 and 2015.

In addition to the supply contracts, Bombardier Transportation is also one of the five equal shareholders of Metronet Rail BCV Holdings Ltd and Metronet Rail SSL Holdings Ltd, "Metronet", along with Atkins, Balfour Beatty, Seeboard and Thames Water. Together, the shareholders have invested £350 million ($812 million Cdn/ 512 million Euros) of equity in equal shares of £70 million ($162 million Cdn/102 million Euros). Metronet Rail BCV Finance plc and Metronet Rail SSL Finance plc have raised a further £2.6 billion ($6.0 billion Cdn/3.8 billion Euros) on a non-recourse basis to shareholders.

In the first seven-and-a-half years of the 30 year Public Private Partnership (PPP), Metronet will invest over £7 billion ($16.2 billion Cdn/10.3 billion Euros) upgrading, replacing and maintaining the infrastructure of the Infracos BCV (Bakerloo, Victoria, Central and Waterloo & City Lines) and Infraco SSL (the Sub-Surface Lines - Circle, District, Hammersmith & City, Metropolitan and East London). This will lead to massive improvements to London Underground’s infrastructure and will bring significant benefits to London’s travelling public.

Pierre Lortie, President and Chief Operating Officer of Bombardier Transportation, said "We will be working in partnership with the other Metronet shareholders to bring major improvements to travellers in London and to ensure a massive investment into the London Underground systems. The new trains will be built and maintained in the UK and will bring a secure and long term workload for our Derby site. We have extensive experience in successfully managing and implementing projects of this nature and we look forward to bringing this expertise to bear, for the long-term benefit of the city of London".

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

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 Montréal, Canada, the Corporation has a workforce of some 75,000 people and manufacturing facilities in 25 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2003 stood at $23.7 billion Cdn (£9.96 billion) Bombardier shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).

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