Bombardier Business Report

Introduction

Bombardier is a world-leading manufacturer of innovative transportation solutions ranging from regional aircraft and business jets to rail transportation equipment, systems and services. Headquartered in Montreal, Canada, Bombardier has an occurrence in more than 60 countries on five continents, and operates manufacturing facilities in 21 countries. Bombardier has attained its global leadership by exercising foresight, perseverance and innovation. And by designing and making products that answer the customer's need for quality, dependability and cost-effectiveness. As a leader in aerospace and rail transportation - industries that are fundamental to the way people live and work - Bombardier can help to craft sustainable transportation solutions. Indeed, Bombardier is uniquely positioned to do so. Operating around the world and with the widest product range in two transportation segments, Bombardier has a level of stability and operational flexibility that Is virtually unrivalled, thereby benefiting its customers, shareholders, partners and employees. 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).

History

* In 1942, J.-Armand Bombardier found a company to manufacture tracked vehicles for transportation on snow-covered terrain. The company's name was L'Auto-Neige Bombardier Limitйe.

* On January 23, 1969, listing of Bombardier stock on the Montreal and Toronto stock exchanges and public offering of two million shares. Shares were now traded on the Toronto stock exchange.

* In December 1986, acquisition of Canadair, leading Canadian aircraft manufacturer.

* In March 1990, creation of subsidiary Bombardier Real Estate Ltd., responsible for the management of Bombardier's real estate assets.

* In March 1992, acquisition made through a new company, de Havilland Inc., whose equity is shared by Bombardier (51%) and the Province of Ontario (49%).

* In December 1995, inauguration of an aerospace training centre in collaboration with CAE Electronics.

* In February 1996, creation of Bombardier Services to foster the development of a stronger presence in the growing market for support, maintenance and training services as well as operations management in the public and private sectors.

* In December 1996, Bombardier finalizes agreement for acquisition of the business jet completion division of Innotech Aviation Inc. of Dorval, Quйbec.

* In February 1997, Bombardier purchases NorRail Inc., a railcar leasing and management firm servicing customers in the United States, Canada and Mexico.

* In 1998, Bombardier is reorganized into five groups: Bombardier Aerospace, Bombardier Transportation, Bombardier Recreational Products, Bombardier Services and Bombardier Capital. Bombardier will integrate its activities under Bombardier Services into its manufacturing groups in January 1999.

* In March 1998, Bombardier International is created to pursue growth opportunities for Bombardier into targeted markets outside of North America and Western Europe.

* In August 2000, Bombardier announces that it will invest approximately $170 million to build a final assembly facility for its CRJ700 and CRJ900 regional aircraft, at Montrйal's Mirabel airport.

* In December 2000, Bombardier selects Pierre Beaudoin to lead Bombardier Aerospace, Business Aircraft unit. Jean-Yves Leblanc is appointed to the position of Chairman of Bombardier Transportation. Pierre Lortie will move to the position of President and Chief Operating Officer of Bombardier Transportation.

* In October 2001, Pierre Beaudoin is appointed President and Chief Operating Officer of Bombardier Aerospace.

* In May 2002, the Government of Canada recognizes the national historic significance of Joseph-Armand Bombardier.

* On December 13, 2002, Robert E. Brown leaves Bombardier and Paul M. Tellier is appointed President and Chief Executive Officer, effective January 13, 2003.

* On April 3, 2003, President and Chief Executive Officer Paul M. Tellier announces Bombardier's action plan, which includes a major recapitalization program featuring an equity issue and asset divestitures, including Bombardier Recreational Products, Defense Services and Belfast City Airport. Together, they are expected to generate in excess of $2 billion, and will strengthen Bombardier's balance sheet, serve to rebuild its credibility with investors, and sharpen its focus on aerospace and transportation.

* On February 18, 2004, Andrй Navarri was named President of Bombardier Transportation.

* On March 17, 2004, President and CEO Paul M. Tellier proposed a major restructuring initiative for the Corporation's transportation sector to address excess capacity in its industrial operations, drive performance improvements and restore its earnings power.

* On December 13, 2004, a new Office of the President was created to attend to executive management and the Corporation's strategic orientation. It is composed of Laurent Beaudoin, appointed Executive Chairman of the Board and Chief Executive Officer, as well as President of Bombardier Transportation

* In July 2005, Bombardier sold Bombardier Capital's on-balance sheet manufactured housing operations to Vanderbilt Mortgage and Finance, Inc.

Industry

* Manufacturing of rail transportation equipment and systems, as well as providing support services

* Manufacturing of regional and business aircraft

Mission Statement

Bombardier's mission is to be the world's leading manufacturer of planes and trains. They are committed to providing superior value and service to their customers and sustained profitability to their shareholders by investing in their people and products. They lead through innovation and outstanding product safety, efficiency and performance. Their standards are high. They define excellence--and they deliver.

Code of Ethics

Bombardier has built its enviable worldwide reputation not