Bombardier and Knorr-Bremse conclude framework agreement

							            Press Release




            Munich, 8 July 2008



            Bombardier and Knorr-Bremse conclude framework agreement

            Knorr-Bremse has concluded a long-term framework agreement (“Long Term Supply Agree-
            ment”) for braking systems with Bombardier Transportation, the world’s largest manufacturer
            of rail transport technology. The agreement was signed on 7 July in the Berlin representative
            offices of Knorr-Bremse. It was signed on behalf of Bombardier by Pierre Attendu, Vice
            President Operations, and Charles O'Donnell, Vice President Procurement, Passengers Di-
            vision, and on behalf of Knorr-Bremse by Dr. Dieter Wilhelm, Member of the Board of Knorr-
            Bremse AG, and Dr. Frank Gropengiesser, Chairman of the Board of the European division
            for rail vehicle systems. The agreement covers three major points:

                  Knorr-Bremse is to become the preferred partner for Bombardier for braking systems
                  and it is intended that it will bear a “considerable proportion of the supply”.
                  A unified, streamlined process will be defined for future supply contracts.
                  It is the intention of Bombardier and Knorr-Bremse to implement common technical
                  standard solutions in order to be able to offer competitive systems to the marketplace.

            The agreement was signed for a period of three years, which is intended to be extended
            thereafter.

            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.

            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,
            2008, were $17.5 billion US, and its shares are traded on the Toronto Stock Exchange
            (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World
            and North America indexes.

            The Knorr-Bremse Group is the world’s leading manufacturer of braking systems for rail and
            commercial vehicles. For more than 100 years now the company has pioneered the devel-
            opment, production and marketing of state-of-the-art braking systems. Other lines of business
            include automatic door systems, rail vehicle air conditioning systems and torsional vibration
            dampers for internal combustion engines. In 2007 the Group posted sales of EUR 3.25 billion
            and employed a workforce of 14,000.

            Photographs of the signing of the agreement can be obtained from the following contact.
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            Contact:


            Knorr-Bremse AG
            Gerd Henghuber
            Head of Corporate Communications
            Moosacher Straße 80
            D-80809 Munich

            Tel: +49 89-3547-1402
            Fax: +49 89-3547-1403

            Email: gerd.henghuber@knorr-bremse.com
            www.Knorr-Bremse.com
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