Bombardier Statement in Response to Alstom's Demand for Suspension of a Contract Awarded to Bombardier

Market Wire, November, 2006

In response to legal proceedings initiated by Alstom against the decision by SNCF, French National Railways, to award Bombardier Transportation France a contract to supply future Ile-de-France commuter trains, Bombardier Transportation announced today that it is reviewing all its legal options and will vigorously defend its interests in this matter.

Bombardier Transportation wishes to reiterate that this contract was awarded as a result of a European-wide tender issued in 2004.

In France, Bombardier Transportation operates primarily at its Crespin factory in the Valenciennes region, which employs 1,600 people and is the leading French manufacturing site in the railway industry. Bombardier Transportation is involved in all TGV (high-speed rail) programs. The group manufactures a wide range of rolling stock for public transport. Among these products are the MF2000 vehicles for the Paris metro, the Marseille, Nantes and Saint-Etienne tramways, and the recent RER (commuter train) vehicles. Bombardier is a major player in regional transportation with its TER2N NG railcars and the AGC (Autorail Grande Capacite/high-capacity rail liner) which 21 French regions have ordered to date. Bombardier Transportation is recognized as a global partner of the transport authorities in France.

Bombardier Transportation has its global headquarters in Berlin, Germany with a presence in over 60 countries. It has an installed base of approximately 97,000 cars. The group 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 .

Contacts: Bombardier Transportation Sharon Christians Vice-President, Communications 49 30 98607 1130 Bombardier Transportation Ulrich Bieger Director, Communications 49 30 98607 1135 www.bombardier.com