FLEXJET'S FRACTIONAL-OWNERSHIP PROGRAM EXPANDS TO EUROPE

Press Release: Flexjet

July 6, 1999
DALLAS--Flexjet®, the Dallas- basedfractional-ownership program from Bombardier Aerospace® that is enjoying spectacular growth in the United States, is expanding into the European market.

In the first phase of the expansion, which is already under way, current North American Flexjet owners are flying Learjet® and Challenger® aircraft within Europe.The second phase will feature the creation of a Flexjet European sales and support organization, which will offer a fractional-jet- ownership program tailored to meet the specific travel requirements of European business leaders.

"Bombardier Aerospace already has a large European presence, with over 10,000 employees in seven countries. We understand the needs of our European clients, having built, sold and supported aircraft in Europe for over 50 years," said Mark Self, one of the three original founders of Flexjet inNorth America and managing director of Flexjet Europe.

"Our experience has enabled Flexjet to design a fractional- ownership program specifically for Europe, taking into consideration European regulatory, business and operating environments.''

Flexjet Europe will be supported by 80 employees providing supplies, parts and maintenance at five locations on the Continent. Flight operations will be based at the ExecuJet Scandinavia headquarters, in Copenhagen, Denmark.The sales and administration office will be in London.Unlike its principal competitor, Flexjet builds, flies and maintains its own aircraft. This distinction has helped the program grow at a rate of 55 percent per year over the last three years.

Flexjet currently serves more than 350 owners in the United States with a fleet of more than 65 aircraft.

Flexjet's fractional-ownership program provides all the productivity and lifestyle advantages of owning a jet without any of the responsibilities ofowning, crewing or maintaining an aircraft. Flexjet planes are equipped with the latest in airline safety equipment. They can fly in and out of uncongested, smaller airports, generally avoiding weather and air-traffic delays.Being able to schedule the use of their aircraft on as little as four hours' notice gives Flexjet owners maximum flexibility. Because Flexjet allows them to work more efficiently and productively, owners have more time to spend with their families or do business.

"Introducing the Flexjet program in Europe will allow us to offer Bombardier Learjet and Challenger aircraft to the European businesscommunity with a pricing structure that is predictable, affordable and simple,'' said Dennis Keith, president of the Bombardier unit which runs Flexjet worldwide.Flexjet's European fleet includes the Learjet 31A, the Learjet 60 and theChallenger. Owners may purchase shares in these jets ranging from 1/16th (50hours per year) to one-half (400 hours per year). In addition, owners pay amonthly management fee and a charge for each hour they are on board the plane.Bombardier Aerospace, a unit of Bombardier Inc., is the world's third-largest civil-aircraft manufacturer, with operations in three countries.

Leading the 20- to 70-passenger regional-carrier market, Bombardier Aerospace offers complete families of turboprop and regional jet aircraft.It has the industry's widest range of business jets, offering both full and fractional ownership, and also produces firefighting/maritime mission aircraft. It provides technical services, aircraft maintenance and pilot training to business, regional-airline and military customers.

Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail-transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in12 countries in North America, Europe and Asia, and more than 90 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended Jan. 31, 1999, totaled CDN$11.5 billion.

Flexjet, with more than 600 employees in the Dallas area, offers a turnkey fractional-ownership program that allows individuals or companies to purchase a share of a Bombardier business jet at a fraction of the fullownership cost. Owners in the Flexjet program have access to their aircraft 24 hours a day and can fly to more than 5,000 U.S. airports and thousands more internationally in as little as four hours' notice. Flight-crew employment and training, aircraft maintenance, hangar fees, fuel and insurance are all managed on behalf of owners by Flexjet.