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BRP to Expand its Austrian Facilities

BRPGunskirchen, Austria, December 6, 2006 - BRP will invest an additional 2.2 million euros (CAD $3.3 million) to expand its Austrian facilities located in Gunskirchen, to meet increased demand for its Rotax® engines. The investment will be used, in part, to enlarge the production area and optimize the material flow, but also to build new offices, locker rooms, break rooms, and a fitness-centre for the employees.

"The increased demand for our Rotax engines is proof of our market leadership in development and production of high-performance engines," said Gerd Ohrnberger, vice-president and general manager, BRP-Rotax. "This investment will allow us to increase production capacity by optimizing and modernizing our plant. It will moreover contribute to improve the working conditions and well-being of our employees," he added.

The construction work will start in January 2007 and is expected to be finalized by October 2007. In the last year, BRP will have invested more than 7.2 million euros (CAD $8.8 million) in its Austrian facilities.

Located in Upper Austria, BRP-Rotax GmbH & Co. KG ("BRP-Rotax") has, in the past 50 years, developed over 350 engine types and produced more than six million Rotax® engines. As an affiliate of Bombardier Recreational Products Inc. (BRP), BRP-Rotax develops and produces innovative two- and four-stroke high performance engines for Ski-Doo® and LynxTM snowmobiles, Sea-Doo® watercraft and sport boats, Can-AmTM ATVs and quads, motorcycles, ultralight and light aircraft as well as karts.

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