Bombardier Inc. Announces Closing of New Issue of Notes

Bombardier Inc. (TSX: BBD.A)(TSX: BBD.B) announced today that it has successfully closed a 1.9 billion euros issue of Senior Notes. The offering, made principally in Europe and the United States, consisted of a 800 million euros aggregate principal amount of floating rate senior notes due 2013 based on EUROLIBOR 3.125%, a US$385 million (300 million euros) aggregate principal amount of 8% Senior Notes due 2014 and a 800 million euros aggregate principal amount of 7.25% Senior Notes due 2016.

Bombardier Inc. and Bombardier Capital Funding Limited Partnership announced today that further to the tender offers made on October 23, 2006 for the outstanding 500 million euros 6.125% Notes due 2007 issued in Europe by Bombardier Capital Funding Limited Partnership and for the outstanding 500 million euros 5.75% Notes due 2008 issued in Europe by Bombardier Inc., Bombardier Capital Funding Limited Partnership has accepted and purchased an aggregate principal amount of 231,809,000 euros of the 2007 Notes at a price of 101.047 per denomination of 1,000 euros and Bombardier Inc. has accepted and purchased an aggregate principal amount of 217,764,000 euros of the 2008 Notes at a price of 101.787 per denomination of 1,000 euros.

Bombardier Capital Funding Limited Partnership has now given notice that it has elected to redeem early all of the remaining 2007 Notes on December 18, 2006 which have not been tendered under the tender offer made on October 23, 2006.

Finally, Bombardier Capital Inc. has provided notice to noteholders that it will be prepaying the entire outstanding principal amount of its US$220,000,000 aggregate principal amount of its 7.09% Senior Unsecured Notes due March 2007 on December 18, 2006.

This announcement is not an offer of securities for sale in the United States. The new Senior Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an exemption from registration.

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 Inc. Isabelle Rondeau Director, Communications 514-861-9481 www.bombardier.com Bombardier Inc. Shirley Chenier Director, Investor Relations 514-861-9481