Bombardier Selected Preferred Bidder for Rapid Rail System in South Africa

Bombardier Transportation is a member of the Bombela consortium that has been selected by the Gauteng Provincial Government in South Africa to negotiate the terms of a concession contract for the financing, design, construction, and operation and maintenance of the Gautrain Rapid Rail Link. The 80-km Gautrain system will link Johannesburg, Tshwane and the Johannesburg International Airport. Bombardier, the lead member of the consortium, will be responsible for the core electrical and mechanical systems, including a fleet of Bombardier Electrostar vehicles. The opening of the rail link system, which includes 10 stations and a bus feeder system, is planned to coincide with the 2010 Soccer World Cup. Negotiation of the concession contract is expected to commence in July 2005, with financial close expected in 2006.

The project, to be implemented under a Public Private Partnership scheme, consists of financing, design-build, and operations and maintenance of the Gautrain Rapid Rail Link. The Bombela consortium consists of the following members: Bombardier; French civil contractor Bouygues Travaux Publics; RATP Développement, a major French rail and bus operating company; South African civil contractor Murray & Roberts; and Loliwe Rail Contractors and Loliwe Rail Express, which are partnerships of South African companies.

Commenting on the Gauteng Government’s selection of the Bombela consortium, Andre Navarri, President of Bombardier Transportation said, “We welcome this outstanding opportunity to partner with local South African and international companies to deliver a world-class system to South Africa. This announcement is a sign of confidence in Bombardier’s ability to deliver complex concession projects, as well as complete rail systems for major world events.” He added, “we are very confident that our proven Electrostar vehicle, combined with our CITYFLO 250 train control technology, will provide exceptional system reliability.”

Ray Betler, President of Bombardier Transportation, Total Transit Systems, said, “Bombardier is very proud to be part of the Government’s vision to build a modern and effective rail system that will alleviate traffic congestion while harmonizing with the region’s pristine natural environment. The Gautrain Rapid Rail Link will serve to stimulate job creation and will contribute to the economic development of the Province of Gauteng.”

Bombardier and Loliwe Rail Express will be responsible for the design and supply of the Electrostar vehicles, Bombardier CITYFLO 250 train control technology, power supply and distribution systems, communications systems, automatic fare collection, trackwork and maintenance equipment, as well as project management, systems engineering and integration, and testing and commissioning.

Bombardier Transportation’s facility in Derby, United Kingdom, will be responsible for manufacturing the fleet of Electrostar vehicles, with final assembly performed in South Africa by UCW Partnership, a broad-based empowered subsidiary of Murray & Roberts. The Electrostar vehicle is operating on a number of lines in the UK, including the c2c line, where it is achieving some of the highest reliability figures in the country.

In addition, Bombardier, with Loliwe Rail Express, will be responsible for maintenance services and training of South African personnel. The civil contractors will be responsible for all of the civil works, including tunnels, stations and the maintenance depot.

Bombardier, Electrostar and CITYFLO are trademarks of Bombardier Inc. or its subsidiaries

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.

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