CAE Wins Contracts for Four Full-flight Siimulators and for Update and Relocation Services Valued at Approximately C$55 Million

Nov. 9, 2009
The FFS contracts are with Malaysia Airlines, Kenya Airways, Korean Air, and Mount Cook Airlines and bring the total FFS sales that CAE announced in fiscal year 2010 to 10.

Montreal, November 09, 2009 – (NYSE: CAE; TSX: CAE) – CAE has signed contracts valued at approximately C$55 million at list prices to design and manufacture four full-flight simulators (FFSs) and related training devices, and to provide simulator updates and relocations. The FFS contracts are with Malaysia Airlines, Kenya Airways, Korean Air, and Mount Cook Airlines and bring the total FFS sales that CAE announced in fiscal year 2010 to 10.

“The civil aerospace market continues to be challenging; however, CAE’s diversified portfolio allows us to offer airlines a range of aviation training solutions tailored to our airline customers’ requirements,” said Jeff Roberts, CAE’s Group President, Civil Simulation Products, Training, and Services. “We are delighted that new customers Malaysia Airlines, Kenya Airways, and Mount Cook Airlines have placed their trust and confidence in CAE for their full-flight simulator needs. We are also pleased that Korean Air, a long-time customer, has chosen CAE for its business aviation FFS.”

Malaysia Airlines

CAE has sold a CAE 7000 Series Boeing 737-800 Level D FFS and a CAE Simfinity Boeing 737-800 Integrated Procedures Trainer (IPT) to Malaysian Airlines System (MAS). This will be CAE’s first B737-800 FFS and IPT for Malaysia Airlines. They will be delivered to the Malaysia Airlines training centre in Kuala Lumpur and are expected to be ready-for-training toward the end of 2010.

“CAE’s Series 7000 simulator design and its proven reliability were among the factors in our decision making,” said Malaysia Airlines Operations Director, Capt. Mohamed Azharuddin Osman. ”This is a prelude to us taking delivery of our B737-800 planes in 2010. We have ordered 35 aircraft with an option for another 20.”

Kenya Airways

CAE has sold a CAE 5000 Series Boeing 737NG FFS and related training devices to Kenya Airways. This marks the first time that CAE has sold simulation equipment to Kenya Airways, which is building a new training centre in Nairobi to house the simulator. The FFS, along with CAE Simfinity™ virtual maintenance trainers (VMTs), will be delivered in mid-2010. In addition, CAE will assist Kenya Airways with developing the new training centre and their B737NG pilot training program.

“The simulator will greatly increase our capacity and self-reliance in the training of our pilots,” said Titus Naikuni, Chief Executive Officer of Kenya Airways. “The simulator will reduce our training costs because we will no longer have to send our pilots abroad for this purpose. It will also position us as a training centre for other airlines in the region, presenting Kenya Airways the opportunity to make some revenue to repay faster for the investment we have put in.”

Korean Air

CAE has sold a CAE 5000 Series Citation CJ1+ FFS to Korean Air, South Korea’s largest airline. The new FFS will be delivered to Korean Air’s pilot training centre on Jeju Island in the second half of 2010. The simulator will feature CAE’s next-generation visual solution, including CAE Tropos-6000™ image generator and liquid crystal on silicon (LCoS) projectors. Korean Air uses Cessna Citation CJ1+ aircraft for advanced pilot training and will use the new simulator to further enhance its pilot training program.

Mount Cook Airlines

CAE has sold a CAE 7000 Series ATR 72-500 FFS to Mount Cook Airlines, a wholly owned subsidiary of Air New Zealand. The simulator will be delivered to Auckland in the first half of 2010. The simulator will incorporate a full six-degree-of-freedom CAE True™ electric motion system and a CAE Tropos-6000 visual system with LCoS projectors. The FFS is expected to be qualified to applicable Level D flight simulation training device standards by the Civil Aviation Authority of New Zealand and other national aviation authorities.

Update and Relocation Services

CAE has signed a contract with Aer Lingus, Ireland's national airline, to perform a major update to a CAE-built Airbus A320 FFS. The update will include upgrading the cockpit to reflect the current Airbus Standard as well as upgrading the hydraulic motion system with the CAE True electric motion system. CAE will also update the visual system with the CAE Tropos-6000 image generator and LCoS projectors. The updated simulator will be ready for training in mid-2010.

CAE has signed a contract with the Finnair Flight Training Center to perform a major update to its CAE-built Airbus A330/340 FFS. The simulator, originally built in 1992 by CAE for ZFB Berlin, was acquired by Finnair earlier this year and relocated by CAE to the Finnair Flight Training Center in Helsinki. CAE has just completed the GE engine update on this simulator. The simulator is presently being used in training and the next major update is scheduled for completion by mid-2010. CAE will also upgrade the cockpit to reflect the current Airbus Standard 2.3 for A330/340 aircraft.

CAE will relocate nine FFSs and flight training devices (FTDs) for China Airlines — the national carrier of the Republic of China (Taiwan) — and the China Aviation Development Foundation (CADF). The equipment will be moved from Taipei Songshan Airport to a new consolidated training centre at Taoyuan International Airport, China Airlines’ base of operations in northern Taiwan.

All of the FFSs and FTDs were originally built by CAE. The six full-flight simulators include a Boeing 747-400, 747-400F, Airbus 330/340 and 330-200 owned by China Airlines plus Boeing 737-800 and Airbus 300-600R FFSs owned by CADF. The three flight training devices are Boeing 737-800 and 747-400 FTDs for CADF, and an Airbus 330/340 for China Airlines.

About CAE

CAE is a world leader in providing simulation and modelling technologies and integrated training solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1.6 billion, CAE employs more than 6,500 people at more than 75 sites and training locations in 20 countries. We have the largest installed base of civil and military full-flight simulators and training devices. Through our global network of 29 civil aviation and military training centres, we train more than 75,000 crewmembers yearly. We also offer modelling and simulation software to various market segments and, through CAE’s professional services division, we assist customers with a wide range of simulation-based needs. www.cae.com.