Trains for China

Bombardier Sifang Power (Qingdao) Transportation (BSP) – a joint venture comprising

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and China South Locomotive and Rolling Stock Industry (Group) Corporation - has received an additional order from the Ministry of Railways of China (MOR) for the production and delivery of 20 eight-car high-speed trainsets.

This order follows an initial 20 eight-car high-speed trainsets order awarded to the same parties by the MOR in October 2004. The complete order for the 40 trains is valued at approximately $700 million, with Bombardier receiving approximately $382 million. Deliveries of the trains will start in July 2006 and will be completed in December 2007.

The trains, which can reach a speed of 200 km/h, will be designed by Bombardier in Västerås, Sweden. The site in Västerås will also provide part of the propulsion. The carbody production and final assembly will be undertaken in China, under BSP’s responsibility.

In addition to BSP, Bombardier participates in two other joint ventures in China. The first one, Changchun Bombardier Railway Vehicles (CBRC), is dedicated to the production of metro vehicles. The other joint venture, Bombardier-CPC Propulsion Systems, is involved in the production, marketing and maintenance of propulsion equipment for rail vehicles.