15/06-2012 14:02:00: Bombardier Announces Share Conversion Privilege of Series 2 and Series 3 Preferred Shares and Dividend Rate Reset of Series 3 Preferred Shares

Bombardier Inc. /
Bombardier Announces Share Conversion Privilege of Series 2 and Series 3 
Preferred Shares and Dividend Rate Reset of Series 3 Preferred Shares 
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The issuer is solely responsible for the content of this announcement. 

MONTREAL, QUEBEC--(Marketwire - June 15, 2012) - In connection with the
conversion privilege for holders of its Series 2 and Series 3 Preferred Shares,
Bombardier Inc. (TSX: BBD.A)(TSX: BBD.B) today announced the basis for resetting
the dividend rate on its Series 3 Preferred Shares in accordance with the terms
applicable to those shares.

Holders of Bombardier Inc. Series 2 Preferred Shares have the right to convert
all or part of their shares, effective on August 1, 2012, on a one-for-one basis
into Series 3 Preferred Shares. Holders of Series 3 Preferred Shares have the
right to convert all or part of their shares, effective on August 1, 2012, on a
one-for-one basis into Series 2 Preferred Shares. Holders who do not convert
their shares will retain their Series 2 Preferred Shares or Series 3 Preferred
Shares, as the case may be.

In the case of the Series 2 Preferred Shares, starting as of August 1, 2012,
holders will continue to receive a monthly floating adjustable cash dividend, as
and when declared by the Board of Directors of Bombardier Inc., based on a
dividend rate equal to a percentage of the prime rate, subject to certain
adjustments in accordance with the terms of such shares.

In the case of the Series 3 Preferred Shares, starting as of August 1, 2012,
holders will receive a quarterly fixed cash dividend for the following five
years, as and when declared by the Board of Directors of Bombardier Inc., based
on a fixed rate equal to 255% of the yield on five-year non-callable Government
of Canada bonds determined as at July 11, 2012, in accordance with the terms of
such shares. The annual dividend rate applicable to the Series 3 Preferred
Shares will be published on July 12, 2012 in several newspapers.

Any registered shareholder who wishes to convert his or her Series 2 and/ or
Series 3 Preferred Shares must complete and sign the conversion panel contained
on the back of the Series 2 or Series 3 Preferred Share certificate as the case
may be, and deliver it, at the latest by 5:00 p.m. (Montreal time) on July
18, 2012, to Computershare Investor Services Inc.

Shareholders who are beneficial owners and who wish to exercise their right of
conversion should communicate as soon as possible with their broker or other
nominee and follow their instructions. In that case, it is important that they
follow such instructions and act in the time frame advised so as to provide
enough time to their broker or other nominee to meet the July 18, 2012 deadline.

If, after July 18, 2012, Bombardier Inc. determines that there would be less
than one million Series 2 Preferred Shares outstanding after the conversion date
(being August 1, 2012), then all remaining Series 2 Preferred Shares will
automatically be converted into Series 3 Preferred Shares on a one-for-one
basis. However, if, after such date, Bombardier Inc. determines that there would
be less than one million Series 3 Preferred Shares outstanding after the
conversion date (being August 1, 2012), then all remaining Series 3 Preferred
Shares will automatically be converted into Series 2 Preferred Shares on a one-
for-one basis. In either case, Bombardier Inc. shall give a written notice to
that effect to holders of such remaining shares no later than July 25, 2012.

Subject to the conditions mentioned in the previous paragraph, on August
1, 2017, and every five years thereafter, holders of Series 2 Preferred Shares
and holders of Series 3 Preferred Shares will have again the right to convert
their shares into shares of the other series.

About Bombardier

Bombardier is the world's only manufacturer of both planes and trains. Looking
far ahead while delivering today, Bombardier is evolving mobility worldwide by
answering the call for more efficient, sustainable and enjoyable transportation
everywhere. Our vehicles, services and, most of all, our employees are what make
us a global leader in transportation.

Bombardier is headquartered in Montreal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
World and North America indexes. In the fiscal year ended December 31, 2011, we
posted revenues of $18.3 billion USD. News and information are available at
www.bombardier.com or follow us on Twitter @Bombardier.

Shareholders requiring further information about the steps to be followed should
contact

Computershare Investor Services Inc.

+1-800-564-6253 or service@computershare.com

Contacts:
Isabelle Rondeau
Director, Communications
Bombardier Inc.
+514-861-9481

Shirley Chenier
Senior Director, Investor Relations
Bombardier Inc.
+514-861-9481
www.bombardier.com











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