Saint-Bruno, Québec, May 28, 2004 - Bombardier Recreational Products Inc. (BRP), today announced its financial results for the fiscal year ended January 31, 2004. On December 18, 2003, in a transaction sponsored by Bain Capital, the Bombardier family, La Caisse de Dépôt et Placement du Québec (CDP), a newly created entity named Bombardier Recreational Products Inc. (BRP) acquired from Bombardier Inc. its recreational products business.

The financial results described and presented below represent the combined results of the recreational products business of Bombardier Inc. from February 1, 2003 to December 18, 2003 and the results of BRP from December 19, 2003 to January 31, 2004 ("combined year").

For the combined year 2004, consolidated revenues were stable at $2.5 billion Cdn compared to last year, which is mainly due to BRP's decision to lower dealer inventories and shift watercraft production into the early part of fiscal year 2005. Consolidated Adjusted EBITDA, adjusted for certain items and impacts related to purchase accounting, amounts to $193.1 million for the combined year 2004, compared to $181.1 million for the previous year, an improvement of 6.6%.

BRP reported a net income of $12.7 million for the combined year 2004 compared to $114.8 million last year. This reduction arises mainly by the fair valuing of the assets, liabilities and foreign exchange contracts on December 18, 2003, as required at the time of acquisition of the recreational products business, by a decision to postpone watercraft production and deliveries and by higher warranty costs related to the recall of model year 1992 to 1996 watercraft fuel tanks. In addition, fiscal year 2003 was positively impacted by changes in estimates related to the acquisition of the assets of the outboard engine business of Outboard Marine Corporation as well as a change in accounting policies related to sales promotions and incentive programs.

"We are excited by our 2004 product introductions and we are now ready to capitalize on our leadership position in the snowmobile and watercraft markets. Our highly diversified portfolio of innovative products including the 2-up Max family of ATVs and our Evinrude® E TEC^TM outboard engine technology continue to be well accepted by our customers," said José Boisjoli, President and Chief Executive Officer. "Based on our product offering and our strong position in the market place, we look at fiscal year 2005 with confidence," he added.

Snowmobile sales have increased by 13% compared to 2003 despite lower shipments in order to reduce dealer inventory level. This is mainly due to BRP's exciting line-up based on the REV^TM platform, which has been a great success ever since it was launched in 2002. With these positive results, BRP, with Ski-Doo® and Lynx^TM snowmobiles, remains the number one manufacturer in the world.

Watercraft sales have decreased by 22% compared to fiscal year 2003. This is the result of BRP's decision to shift watercraft production and deliveries to the early part of fiscal year 2005, to better match retail activities. However, Sea-Doo® watercraft continue to be the world leader with exciting, high performance and cleaner products. With the introduction of the RXP^TM watercraft, BRP expects to maintain its leadership position in the market place.

ATV sales have increased by 63% over last year due to a more complete line-up including very innovative products such as the 2-up Max family, which is gaining a higher level of acceptance in the market place. BRP's sales to Deere & Company have also contributed to these positive results.

Marine engine sales have decreased by 4% over last year. This is due to the strength of the Canadian dollar versus the US dollar, which has more than offset the increase in volume of product deliveries. The E TEC family of products enjoys high customer acceptance and is quickly making headway in all of BRP's markets. In 2003, the 40-, 50-, 75- and 90-hp models were introduced. E-TEC is the latest technology combining all of the best attributes of 2 stroke and 4 stroke engines. These engines are reliable, quiet and cleaner, in addition to being powerful, fuel efficient, lightweight and requiring no dealer scheduled maintenance for the first three years.

As for the Utility Vehicles, sales declined by 15% due to lower deliveries of snowgrooming units in North America as a result of poor snow conditions during winter 2002-2003.

Commenting on the overall BRP situation, Mr. Boisjoli concluded: "We are aiming at generating more synergies and reducing our global operating expenses through our new consolidated operational structure. A closer relationship with our dealers, a more focused marketing strategy and the identification of new sources of supply combined with our innovative, state-of-the-art families of products, give us a strong footing going forward."

Bombardier Recreational Products Inc. is a world leader in design, development, manufacturing, distributing and marketing of Sea Doo® watercraft and sport boats, Ski Doo® and Lynx^TM snowmobiles, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E TEC^TM, Bombardier* all-terrain vehicles (ATV), Rotax^TM engines and karts, as well as Bombardier* utility vehicles.

See attached Unaudited Combined Statement of Operations, Unaudited Consolidated Balance Sheet and Unaudited Consolidated Statement of Cash Flows.
 

This release refers to non-GAAP financial measures, such as EBITDA and Consolidated Adjusted EBITDA. "EBITDA" is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA includes the further adjustments described below. These non-GAAP financial measure are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Our Senior Credit Agreement and the indenture governing our Senior Subordinated Notes contain covenants tied to similar measures. We believe that EBITDA and Consolidated Adjusted EBITDA, adjusted for certain items and impacts resulting from purchase accounting, are a fair representation of and provide information with respect to our ability to service our debt. However, they should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP.

This release contains certain forward-looking statements with respect to our financial condition, results of operations and business. All of these forward-looking statements, which can be identified by the use of terminology such as "subject to," "believe," "expects," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy which, although believed to be reasonable, are inherently uncertain. Factors which may materially affect such forward-looking statements include: (i) slow or negative growth in the recreational products industry; (ii) interruption of business or negative impact on sales and earnings due to acts of war, terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii) adverse publicity regarding safety issues; (iv) increased competition; (v) increased costs; (vi) loss or retirement of key members of management; (vii) increases in the cost of borrowings and unavailability of additional debt or equity capital; (viii) changes in general worldwide economic and political conditions in the markets in which BRP may compete from time to time; (ix) the inability of BRP to gain and/or hold market share of its wholesale and/or retail customers anywhere in the world; (x) the inability of BRP's clients  to obtain and/or renew insurance; (xi) exposure to, and expense of defending and resolving, product liability claims and other litigation; (xii) the ability of BRP to successfully implement its business strategy; (xiii) the inability of BRP to manage its retail, wholesale, manufacturing and other operations efficiently; (xiv) consumer acceptance of BRP's products; (xv) fluctuations in foreign currencies, including the Canadian Dollar; (xvi) import-export controls on sales to foreign countries; (xvii) introduction of new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world; (xviii) the mix of BRP's products and the profit margins thereon; and (xix) other factors beyond BRP's control.

Readers are cautioned not to place undue reliance on forward-looking statements. BRP cannot guarantee future results, trends, events, levels of activity, performance or achievements. BRP does not undertake and specifically declines any obligation to update, republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events.

®, ^TM Trademark of Bombardier Recreational Products Inc. or its affiliates.
* Trademark of Bombardier Inc. used under license.

For information:

Pierre Pichette
Vice President, Communications and Public Affairs
(450) 461-7762
pierre.pichette@brp.com

www.brp.com