BERLIN, GERMANY -- (MARKET WIRE) -- February 20, 2007 -- Bombardier Transportation was awarded, by the medieval city of Augsburg, Germany, the contract to supply 10 of its state-of-the-art 100% low floor FLEXITY Outlook trams in a contract valued at approximately 36 million euros ($ 47 million US). The contract also includes an option for 20 additional trams.

Designed to help cities breathe with modern, user-friendly passenger comfort and reliability, the new FLEXITY Outlook trams are scheduled for delivery between January and October 2009. The FLEXITY Outlook vehicles will be manufactured at the Bombardier facilities in Bautzen, Germany and Vienna, Austria. The electric equipment will be delivered by Bombardier's site in Mannheim and the bogies will be manufactured by their specialists in Siegen.

"This order further strengthens the trust in our proven FLEXITY vehicle family. Following the choice of several European municipalities, Augsburg opted as the first city in Germany for the reliable FLEXITY Outlook 100% low-floor concept, thus taking another step towards barrier-free mobility on its urban networks", states Walter Grawenhoff, President, Light Rail Vehicles, Bombardier Transportation.

"The offer made by Bombardier convinced us with the best package, both technically and commercially. We are confident that with Bombardier we have chosen a reliable and competent partner," comments Norbert Walter, Managing Director of Stadtwerke Augsburg (the Augsburg Transport Authority).

The new trams for Augsburg will be the first of the FLEXITY Outlook 100% low-floor family in Germany. With a combination of conventional wheel-set bogies and a thoroughly step-less, 100 % low-floor interior they offer excellent riding comfort and easy access for passengers. More than 430 FLEXITY Outlook trams were already ordered by cities across Europe and are in successful revenue service in Linz (Austria), Lodz (Poland), Eskisehir (Turkey), Geneva (Switzerland) and Brussels (Belgium). They will soon also commence operation in Marseille (France) as well as in Valencia and Alicante (Spain).

With a length of 40 metres and a width of 2.3 metres the new uni-directional vehicles offer a capacity for 228 passengers, including 85 seated. Two multi-purpose areas offer sufficient space for prams, wheelchairs or bicycles.

About Bombardier Transportation
Bombardier Transportation has its global headquarters in Berlin, Germany with a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide. 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, systems and services, 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.

FLEXITY is a trademark of Bombardier Inc. or its subsidiaries.