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Bombardier Announces Location of Final Assembly Site and Work Packages for the CSeries

May 13, 2005 Montréal Aerospace,  Press Release

Letters of intent signed with the governments of Canada, Québec and the United Kingdom

Bombardier today announced that letters of intent relating to the new CSeries family of aircraft have been signed with the governments of Canada, Québec and the United Kingdom. The Greater Montréal area in Québec, Canada, has been selected as the preferred location for the final assembly of the CSeries family of aircraft. Bombardier's Belfast plant in Northern Ireland has also been chosen as the preferred site for the development of the wings, engine nacelles and composite empennage structures.

As part of a rigourous selection process, Bombardier Aerospace reviewed program financing proposals from over a dozen sites in Canada, the United States and Europe, which were eventually narrowed down to four offers from Québec, Ontario, New Mexico and Northern Ireland. The proposals were assessed against an exhaustive list of economic, technical and strategic criteria to determine the best environment for the final assembly and major work packages of the CSeries family of aircraft.

"This is a very significant milestone as we progress in our discussions with customers and risk-sharing partners before our Board considers a launch decision," said Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace. "We would like to thank all the governments who took part in this selection process. Their interest clearly demonstrates their support of the CSeries aircraft program and the substantial economic benefits it will generate for the chosen locations."

The Province of Québec was selected as the final assembly site location because of the Canadian and Québec governments' competitive partnership offers, as well as the overall favourable economic and manufacturing context. The new labour agreement reached last March with Bombardier Aerospace employees in Québec was also a key factor in the decision.

Bombardier evaluates CSeries development costs, at $2.1 billion US, which it will share with suppliers and partner governments, each for one-third of the total amount. The governments of Canada, Québec and the U.K. will together invest a total of approximately $700 million US. Canada's and Québec's contributions represent $262.5 million US and $87.5 million US respectively. Contributions from the U.K., amounting to $340 million US (£180 million), will be in the form of launch investment and financial assistance. These investments will support the research and development for the CSeries family of aircraft and will be repayable on a royalty basis per aircraft.

On March 15, 2005, Bombardier's Board of Directors granted Bombardier Aerospace authority to offer the new CSeries family of aircraft to customers. The authority to offer is an important step in the process that could lead to the aircraft program launch. Prior to launch, Bombardier will continue to seek firm commitments from potential customers and suppliers.

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, 2005, were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
CSeries is a trademark of Bombardier Inc. or its subsidiaries.

For information
John Paul Macdonald
Senior Vice President, Public Affairs
Bombardier Inc.
+1 514 861-9481

www.bombardier.com

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