NEWS RELEASES

May 5, 2005 (1:30 p.m. EDT)
No. 79

CANADA ACCOUNT TRANSACTION FOR AEROSPACE INDUSTRY

International Trade Minister Jim Peterson today announced the second transaction under the $1.2 billion financing facility set up in July 2003 as part of the Canada Account. The facility, established to support export sales of regional aircraft to various buyers, builds on the government’s efforts to create a level playing field for the industry.

Export Development Canada (EDC), which manages and administers the Canada Account, has negotiated loans of approximately US$230 million to Delta Air Lines subsidiaries Comair and Atlantic Southeast Airlines for the acquisition of Bombardier jet aircraft to add to the airlines’ existing fleet of Canadian regional jets.

“As a world leader in the aerospace industry, Bombardier contributes directly to a strong manufacturing sector by providing thousands of jobs across the country,” said Minister Peterson. “Canada’s aerospace sector is one of the largest in the world and a major driver of Canadian R&D and innovation.”

The financing of this transaction has been structured in accordance with commercial principles and is in full conformity with Canada’s international trade obligations. Information about Canada Account transactions is available on EDC’s Web site at http://www.edc.ca/CanadaAccount.

The aerospace industry influences the output and performance of many other sectors of the Canadian economy. It is a vital incubator of advanced technologies, bringing together a critical mass of Canadian firms that are helping to build a future economy based on high-tech, value-added products.

- 30 -

A backgrounder is attached.

For further information, media representatives may contact:

Andrea Lanthier
Press Secretary
Office of the Minister of International Trade
(613) 992-7332

Media Relations Office
International Trade Canada
(613) 995-1874
http://www.international.gc.ca

Backgrounder

CANADA ACCOUNT

Export Development Canada (EDC) provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets, making it possible for these companies to compete internationally. It is financially self-sustaining, and is accountable to Parliament through the Minister of International Trade.

The vast majority of transactions facilitated by EDC on behalf of Canadian companies are done under EDC’s Corporate Account. However, transactions that fall outside the capacity of the Corporate Account can be considered under EDC’s Canada Account.

EDC requires the authorization of the Minister of International Trade, with the concurrence of the Minister of Finance, before entering into a Canada Account transaction.

Canada Account transactions are negotiated, executed and administered by EDC, but the risks ultimately rest with the Government of Canada.

Additional Canada Account information can be found in EDC’s annual report, on its Web site at http://www.edc.ca/annualreport and in the Public Accounts published by the Government of Canada.