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Vosper Thornycroft (VSP)

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Friday 19 May, 2000

Vosper Thornycroft

£30M Acquisition of Bombardier Defence Services

Vosper Thornycroft Holdings PLC
19 May 2000

                            
             Vosper Thornycroft Holdings plc
                            
 VT ACQUISITION STRENGTHENS TRI-SERVICE SUPPORT SERVICES
                        PORTFOLIO

Vosper  Thornycroft ('VT') has made a major  addition  to
its Support Services activities by signing a contract  to
acquire  the  business of Bombardier Defence Services  UK
('BDSUK')  including its wholly owned subsidiary  Airwork
Ltd,   a  leading  provider  of  aircraft  and  equipment
maintenance,  repair and rectification, flying  training,
and  technical  and  logistics support  services  to  the
military.   The   completion  of   the   transaction   is
conditional  upon  the  novation  of  certain  contracts,
primarily with the UK MOD.

BDSUK  is  a  wholly  owned  business  of  Canadian-based
Bombardier Inc. and VT will pay a consideration  of  £30m
from  its cash reserves. BDSUK's turnover and profit  for
the  financial year ended 31 January 2000,  were   £55.4m
and £4.2m respectively.

VT has developed a strong business based on Shipbuilding,
Support  Services  and  Marine  Products.  Turnover  from
Support  Services has grown by over 500 per cent  in  the
past  four  years and now accounts for more than  40  per
cent  of  group turnover. The acquisition of  BDSUK  will
provide   the   basis   for  further  growth.   Following
completion the business will be operated under  the  name
of VT Aerospace.

VT  Chief Executive Martin Jay commented: 'We are already
established as a leading provider of training  and  other
services  for  the Royal Navy and the British  Army.  Our
strategy  is to become  the leading tri-service  provider
of  military Support Services in the UK.  The acquisition
of  the BDSUK business will make us a major player in the
supply  of  training  and  maintenance  to  the  RAF  and
overseas  Air  Forces, particularly in  the  Middle  East
where  we are already well established in supplying naval
vessels.'

'VT expects the BDSUK business to expand aggressively  in
the future and we believe the new acquisition will make a
significant contribution to VT's continuing development.'

For further enquiries:

Vosper Thornycroft Holdings plc              023 80 426000
Martin Jay, Chief Executive
Chris Cundy, Finance Director
Philip Rood, Public Relations

Notes to Editors

* BDSUK employs some 2,500 people in the UK and overseas.
Turnover is divided equally between operations in the  UK
and Middle East with a strong portfolio of 15 contracts.
*  In  1999, BDSUK was awarded the Light Aircraft  Flying
Task which is the RAF's Pathfinder PFI contract. This  is
a  £110 million, ten-year contract, formerly known as the
University Air Squadron.
*  In the Middle East, BDSUK provides line maintenance of
aircraft  for  the Royal Air Force Oman and,  on  a  sub-
contract  basis  through BAESYSTEMS, to  the  Kuwait  Air
Force.   This   business  is  contracted  through   BDSUK
subsidiary Airwork Ltd..