Bombardier Sifang Wins Contract to Build 80 Very High Speed Trains for China

28 september 2009 Leading-edge BOMBARDIER ZEFIRO technology to feature maximum operating speeds of 380 kph BERLIN, GERMANY--(Marketwire - September 28, 2009) - Bombardier Transportation announced today that its Chinese joint venture, Bombardier Sifang (Qingdao) Transportation Ltd., has been selected by the Chinese Ministry of Railways (MOR) to supply 80 ZEFIRO 380 very high speed trains (1,120 cars) for the country's rapidly growing high speed rail network. The contract, including 20 eight-car trainsets and 60 sixteen-car trainsets, is valued at an estimated 27.4 billion Chinese Renminbis ($4 billion US, 2.7 billion euros).(1) Bombardier's share of the contract is estimated at 13.5 billion Chinese Renminbis, ($2 billion US, 1.3 billion euros).(1) The first train is scheduled for delivery in 2012 with final deliveries expected in 2014. The new trainsets will be an integral part of an evolving high speed rail capability in China, which is developing more than 6,000 km of new high speed lines to create one of the most advanced high speed rail networks in the world. The trains, with maximum operating speeds of 380 kph, are based on Bombardier's next-generation ZEFIRO high speed rail technology, and powered by a highly energy efficient BOMBARDIER MITRAC propulsion and control system. The ZEFIRO 380 trainsets will also incorporate Bombardier's advanced ECO4 energy saving technologies to create best-in-class energy and operating efficiencies. Bombardier launched its ECO4 technology package in 2008 as part of an ongoing focus to extend rail's position as the most sustainable form of transportation in the world. Bombardier is first in the industry to create a new formula for total train performance with a portfolio that can create substantial overall energy savings of up to 50%. The ZEFIRO 380 trains will be manufactured at Bombardier Sifang (Qingdao) Transportation production facilities in Qingdao, China. Engineering will take place in Qingdao and at Bombardier centers in Europe with project management and components provided from sites in Europe and China. Established in 1998, Bombardier Sifang (Qingdao) Transportation Ltd. is a joint venture between Bombardier and CSR Sifang Locomotive and Rolling Stock Ltd. dedicated to supplying passenger rail rolling stock for China. It has delivered over 1,000 passenger rail cars into China since its inception, including a range of high speed trains and high-grade passenger coaches. Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc., said he is proud to have ZEFIRO 380 technology play a key role in China's visionary development of a national high speed rail system. "We are very pleased to be delivering leading-edge very high speed rail technology through Chinese expertise and resources. This illustrates the strategic importance of delivering the most advanced rail technology for China from within China." Bombardier Transportation President and Chief Operating Officer Andre Navarri described the achievement as the result of a long and fruitful partnership with the Chinese. "We are supplying the latest VHS technology for one of the most far-reaching high speed rail initiatives anywhere in the world. This is a landmark order for next-generation rail equipment and the result of a positive and productive, long-term relationship," he added. Stephane Rambaud-Measson, Bombardier Transportation Passengers Division President explained that ZEFIRO 380 is designed from the ground up to make high speed rail more effective as a competitive mode of passenger transport. "The most exciting projects are those that push the technology envelope toward new achievement," he said. "ZEFIRO represents a step change in the very high speed rail sector. It's fast to be sure, but competitive rail service demands more than just speed. It's about operating efficiency, best-in-class energy consumption per passenger, reliability and rider capacity that exceeds anything else on the rails. ZEFIRO delivers all this and more," he concluded. Jianwei Zhang, President and Chief Country Representative Bombardier China said, "China has a clear vision of the critical role high speed rail must play in a sustainable transportation system, and is making the strategic investments necessary to ensure that vision is realized. This country is selecting the most advanced technologies to build the most advanced rail network in the world. It is a pleasure to include this innovative project in the long line of compelling rail solutions we have delivered to China." Background information Bombardier has the broadest high speed rail project experience in the industry, participating in the delivery of more than 850 trains and vehicles for high speed and very high speed applications. In China, Bombardier Sifang (Qingdao) Transportation is currently building the world's fastest sleeper trains for the MOR: twenty 16-car trainsets capable of speeds up to 250 kph. It is also building another 20 high speed trains with conventional seating capable of similar speeds, delivering the first of these trains just 18 months after Notice to Proceed from the MOR. The new contract adds to an impressive Bombardier track record of technology achievements in the Chinese market. In 2008, it delivered Mainland China's first fully automated people mover (APM) to Beijing International Airport and is currently supplying Guangzhou with the world's first APM for an urban mass transit system. In 2007, its contract to supply high speed trains - including the world's fastest sleeper trains - was the largest order for rail equipment ever undertaken by the MOR. Also in 2007, Bombardier signed its first contract to bring an advanced high speed signaling system featuring ERTMS signaling technology to China for the Wuguang high speed dedicated passenger line. In the same year, Bombardier signed a contract with China's Dalian Locomotives and Rolling Stock Co., Ltd. to supply equipment for 500 high-power capacity freight electric locomotives to MOR. It also became the first rail equipment supplier to deliver 1,000 metro cars into the Chinese market mainly through Changchun Bombardier Railway Vehicles Co. Ltd., its joint venture focused on production of metro cars. In 2006, it delivered the first specially designed coaches for operation on the highest-altitude railway in the world. Including its three rail joint ventures and five Wholly Foreign Owned Enterprises (WFOE), Bombardier currently employs more than 3,000 people in China. About Bombardier Transportation Bombardier Transportation, the global leader in rail technology, offers the broadest portfolio in the rail industry and delivers innovative products and services that set new standards in sustainable mobility. BOMBARDIER ECO4 technologies - built on the four cornerstones of energy, efficiency, economy and ecology - conserve energy, protect the environment and help to improve total train performance. Bombardier Transportation is headquartered in Berlin, Germany and has a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide. About Bombardier A world-leading manufacturer of innovative transportation solutions, from commercial 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, 2009, were $19.7 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com. Note to Editors Photos are available on our web site at: http://www.transportation.bombardier.com. For more information, please also visit www.zefiro.bombardier.com. BOMBARDIER, ZEFIRO, MITRAC and ECO4 and are trademarks of Bombardier Inc. or its subsidiaries. www.theclimateisrightfortrains.com (1) Total amount stated includes Chinese VAT; Bombardier's share stated excludes Chinese VAT Contacts: China: + 86 10 8517 2268 Jianwei Zhang, jianwei.zhang@cn.transport.bombardier.com Canada and United States: +1 450 441 3007 Talal Zouaoui, talal.zouaoui@ca.transport.bombardier.com Mexico: +52 55 5093 7766 Alejandro Gutierrez-Marcos, alejandro.gutierrez-marcos@mx.transport.bombardier.com Germany, Austria, Switzerland, Central and Eastern Europe: +49 30 98607 1134 Heiner Spannuth, heiner.spannuth@de.transport.bombardier.com Nordic Countries: +46 10 852 5062 Jonny Hedberg, jonny.hedberg@se.transport.bombardier.com Russia: +7 495 775 1830 Alexander Bocharov, alexander.bocharov@ru.transport.bombardier.com UK, Ireland, Australia, New Zealand, other countries: +44 1332 266470 Neil Harvey, neil.harvey@uk.transport.bombardier.com Benelux: +32 2289 7312 Guy Hendrix, guy.hendrix@be.transport.bombardier.com France: +33 6 07 78 95 38 Anne Froger, anne.froger@fr.transport.bombardier.com South Europe, Brazil and India: +35 1 919 693 728 Luis Ramos, luis.ramos@pt.transport.bombardier.com This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.