OREANDA-NEWS. December 4, 2007. Following recent press reports, Bombardier confirms that it is in discussions with Transmashholding in Russia. These discussions are at a very preliminary stage and, as the outcome is unknown, the Company will make no further comment on these discussions at this time.

Bombardier wishes to point out that it has a long and successful relationship with partners in Russia for over 50 years, and that it will continue to explore opportunities for growth in this very important market.

Bombardier Transportation and Transmashholding, Russia's leading rail technology manufacturer, announced last May 25, 2007, their agreement to invest Euro 12.5 million together to create two joint ventures: an engineering joint venture to develop advanced propulsion technology plus a production joint venture to manufacture traction converters based on Bombardier's MITRAC propulsion technology. Additional areas of cooperation are also being considered between the two parties.