Bombardier, Deere Announce Strategic Alliance For Product Development

Valcourt, Québec, Canada , January 23, 2003

Valcourt, Québec, Canada and Moline, Illinois, U.S., January 23rd, 2003 - Bombardier and Deere & Company will develop new wheeled utility vehicles and technologies under a strategic alliance announced today.

The alliance will combine the efforts of Deere’s Worldwide Commercial & Consumer Equipment Division and Bombardier Recreational Products to produce creative new concepts aimed at expanding the business opportunities for both companies. The result should provide more and even better products for their respective customers and authorized dealers.

"John Deere has an excellent history of engineering products that add to the productivity of our customers," said John Jenkins, President of Worldwide Commercial & Consumer Equipment at Deere. "Pooling our resources with a market leader such as Bombardier strengthens our total investment in research and development."

The first product resulting from this alliance will be a line of new John Deere branded utility vehicles derived from a Bombardier All-Terrain Vehicle (ATV) platform, to be launched initially in Canada and the United States by the end of 2003. The products will be manufactured by Bombardier at their Valcourt, Québec facility.

"Bombardier is very proud of this agreement because it is the recognition, by a highly reputed global leader such as Deere and Company, of the quality of our products and of our leadership position as an innovator," said José Boisjoli, President of the Snowmobiles, Watercraft and ATV Division of Bombardier Recreational Products.

Bombardier has been designing and manufacturing utility and motorized recreational vehicles for over sixty years. While Bombardier’s Snowmobiles, Watercraft and ATV Division offers various products for the recreational user, Deere focuses on products that make customers’ work easier and more fulfilling.

"We believe this alliance is a good fit," said Boisjoli. "In this effort, we will work together to develop new solutions for an ever-changing marketplace." "This is an exciting opportunity for John Deere and Bombardier to jointly leverage our combined technological expertise," said John Deere’s Jenkins. "The two companies are similar in size and culture and both have a history of high quality products supported by outstanding service and support."

Both companies have targeted the announcement of new products resulting from this alliance before the end of 2003.

About John Deere
Deere & Company (NYSE: DE) is the world’s leading producer of equipment for agriculture and forestry, a major manufacturer of equipment used in construction and lawn, grounds and turf care, and engines used in heavy equipment. Additionally, through company subsidiaries, Deere provides financial services and other related activities that support the core businesses. The John Deere Worldwide Commercial & Consumer Equipment Division manufactures and distributes a full line of lawn care equipment for residential, commercial, and golf and turf applications. The extensive lineup includes lawn and garden tractors, walk-behind lawn mowers, hand-held equipment, GATOR* Utility Vehicles, compact utility tractors, and commercial mowing equipment.

About Bombardier
Bombardier Recreational Products designs, develops, builds, distributes and markets utility vehicles, Rotax® engines, Ski-Doo® and Lynx® snowmobiles, Bombardier™ ATVs, Sea-Doo® watercraft and sport boats as well as Evinrude® and Johnson® outboard marine engines and Ficht® direct fuel injection technology.

Bombardier Inc., a diversified manufacturing and services company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montréal, Canada, the Corporation has a workforce of some 80,000 people in 24 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002 stood at $21.6 billion Cdn. Bombardier trades on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).

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