Bombardier is Awarded an Additional Order for One of the World's Most Powerful Electrical Locomotives

LKAB Order 8 Additional 'IORE' Locomotives for the Transport of Iron Ore in Northern Sweden BERLIN, GERMANY--(Marketwire - August 23, 2007) - Bombardier Transportation announced today it has received an additional order for its IORE Locomotives from LKAB. The contract, valued at 52 million euros ($70 million US) is for the supply of 8 BOMBARDIER IORE locomotives. LKAB already has 18 IORE locomotives in successful operation. The IORE locomotive is designed for operation with heavy haul freight trains. Two of these single cab CoCo locomotives are always used in conjunction with each other, although each unit is individually fully functional. The locomotives are in service in an extreme climatic environment where iron ore is hauled from mines located inland in Sweden to the coasts of Sweden and Norway. With an axle load of up to 30t and a starting tractive effort of 1200 kN, the IORE is the mainstay of heavy haul locomotive products within Bombardier Transportation. Stringent LCC (Life Cycle Cost) requirements from the customer have resulted in minimal maintenance costs and excellent reliability. The locomotives are powered by highly proven BOMBARDIER MITRAC technology providing exceptional traction and reliability to respond to the high demands of LKAB for the performance of their sophisticated rail logistics system. The extreme climatic conditions successfully sustained by the previously delivered locomotives are further proof of the versatility of the MITRAC technology and its reliability. The locomotives will be produced at Bombardier Transportation's site in Kassel, Germany. Propulsion and Controls will be manufactured at Bombardier sites in Germany. Commenting on the announcement, Edmund Schlummer, President of Bombardier Transportation Locomotives Division, said: "The IORE locomotive is the ultimate electrical heavy haul locomotive and the flagship of LKAB. It has proved its reliability and demonstrated excellent performance under extreme conditions. We are proud of this additional order which reflects the importance of the Nordic market to us." Tomas Andersson, President Bombardier Transportation Sweden AB commented: "This is a great success for Bombardier. LKAB have valued the excellent performance of their existing IORE locomotives, and the high level of cooperation and trust with Bombardier." Lars-Eric Aaro, Vice President, LKAB Technology & Business Development, added: "The additional IORE locomotives, together with new 30 ton axle load ore cars, will increase our transport capacity by 60%. This means more efficient iron ore transportation to the harbours, which helps to strengthen LKAB's position in the world's iron ore market significantly. We are very pleased to continue our successful cooperation with Bombardier." Note to editors: Useful company background facts and contact details follow. Background facts and figures About Bombardier Transportation Sweden Bombardier Transportation in Sweden employs approximately 1500 people at sites in Vasteras, Stockholm, Hassleholm and Gothenburg. Bombardier offers a complete product portfolio to the Swedish market and has operations in Sweden that carry out design, manufacturing, project management and after-sales activities. Sweden also serves as a technology hub for Bombardier, developing signalling equipment and propulsion & controls for the global market. 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, 2007, were $14.8 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at BOMBARDIER and MITRAC are trademarks of Bombardier Inc. or its subsidiaries. Contacts: Germany, Austria, Switzerland Jürgen Kornmann + 49 30 986 07 1138 Nordic Countries + 46 8 681 5062