Deere, Bombardier Announce Strategic Alliance for Product Development

MOLINE, Ill., and VALCOURT, Quebec, Jan. 23 Deere & Company and Bombardier 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 its
Valcourt, Quebec facility.
"Bombardier is very proud of this agreement because it is the recognition,
by a highly reputed global leader such as Deere & Company, of the quality of
our products and of our leadership position as an innovator," said Jose
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
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(TM) Utility Vehicles, compact utility tractors, and
commercial mowing equipment.
Deere & Company 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.

About Bombardier
Bombardier Recreational Products designs, develops, builds, distributes
and markets utility vehicles, Rotax(R) engines, Ski-Doo(R) and Lynx(R)
snowmobiles, Bombardier(TM) ATVs, Sea-Doo(R) watercraft and sport boats as
well as Evinrude(R) and Johnson(R) outboard marine engines and Ficht(R) 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 Montreal, 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).