Bombardier to Issue Cdn$750 Million (approximately US$600 Million) of Equity

Bombardier announced today that it has entered into an agreement with a syndicate of underwriters, led by National Bank Financial Inc., UBS Securities Canada Inc., CIBC and Citigroup Global Markets Canada Inc. under which they have agreed to purchase on a bought deal basis from Bombardier and sell to the public in Canada 339,367,000 subscription receipts (the Subscription Receipts) exchangeable for Class B shares (subordinate voting) of Bombardier (the Class B Subordinate Voting Shares) in the manner described below. Bombardier has also granted the underwriters an option to purchase up to an additional 50,905,050 Subscription Receipts or the underlying Class B Subordinate Voting Shares, as applicable, at any time up to 30 days after closing of the offering. The offering is subject to the receipt of all necessary regulatory and stock exchange approvals. Closing of the offering is expected to occur on or about February 27, 2015. As part of this offering, certain members of the Bombardier family have confirmed to Bombardier that they will, directly or through holding corporations controlled by them, place orders for Subscription Receipts for an aggregate investment amount equal to the Cdn$ equivalent of US$50 million.

The purchase price of Cdn$2.21 per Subscription Receipt will result in gross proceeds of approximately Cdn$750 million (or approximately Cdn$863 million if the underwriters’ overallotment option is exercised in full). As Bombardier is not currently authorized to issue a sufficient number of its Class B Subordinate Voting Shares, such proceeds will be held by an escrow agent pending, among other things, receipt of all approvals (including shareholder approval) required to amend the articles of Bombardier to increase the number of Class A shares (multiple voting) and Class B Subordinate Voting Shares Bombardier is authorized to issue from 1,892,000,000 to 2,742,000,000 (the Release Condition).

As previously announced, a special meeting of shareholders has been convened and will take place on March 27, 2015, for the purpose of approving by special resolution the proposed amendment to the articles of Bombardier. In the event the special resolution is duly adopted by shareholders, the amendment to the articles of Bombardier is expected to become effective on or about March 27, 2015 and the net proceeds of the offering released to Bombardier at such time. Certain members of the Bombardier family currently exercising control or direction over 266,863,185 Class A shares (multiple voting) and 2,712,776 Class B shares (subordinate voting), representing 58.24% of the total votes attached to the Class A shares (multiple voting) and Class B Subordinate Voting Shares, have agreed to vote in favour of the resolution approving the amendment of the articles of the Corporation.

Each Subscription Receipt will entitle the holder thereof to receive, on satisfaction of the Release Condition, and without payment of additional consideration, one Class B Subordinate Voting Share. In the event that the Release Condition is not satisfied prior to 5:00 p.m. (Montreal time) on April 30, 2015, holders of Subscription Receipts will be entitled to receive an amount equal to the full subscription price thereof plus their pro rata share of the interest earned or other income generated on such amount. The net proceeds of the offering will be used by Bombardier to supplement its working capital and for general corporate purposes.

The Subscription Receipts will be issued by way of a prospectus supplement that will be filed with securities regulatory authorities in Canada under Bombardier’s short form base shelf prospectus dated February 18, 2015, which was previously filed with the securities regulatory authorities across Canada.