CAE Expands its General Aviation Activities with Mooney Airplane Company

Montreal, July 24, 2007 — (NYSE: CGT; TSX: CAE) CAE has signed a contract with first time customer, Mooney Airplane Company (MAC), maker of the world’s highest performance single-engine, piston-powered aircraft.

The agreement calls on CAE to develop a series of web-based maintenance training modules. The program includes the development and implementation of a strategic learning web portal and maintenance modules designed to improve factory support of Mooney’s family of aircraft including the M20-Series, the Ovation and the Acclaim fleets. CAE’s e-learning web portal will host and provide access to the modules to an estimated 450 students in this first phase.

“We are very excited about this new project, which allows our Services team to apply expertise acquired with larger aircraft to the general aviation market,” said Jeff Roberts, CAE’s Group President, Innovation and Civil Training & Services. “We continue to remain flexible in finding cost effective solutions that support our clients’ business objectives and we are very pleased with the relationship that is growing between CAE and Mooney.”

“This training program is central to our strategy to improve the quality of Mooney’s factory support. It’s very important to us,” said Dennis E. Ferguson, Chief Executive Officer of Mooney Airplane Company. “We’ve made a commitment to the Mooney family of owners and operators that we would expand and improve our customer support. This is the latest step in that ongoing process. CAE’s experience and understanding of our specific needs and audience and their ability to deliver very practical and line-oriented training solutions on the web, made them the logical choice as partners in this effort,” he added.

CAE is a world leader in providing simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe. We design, manufacture and supply simulation equipment and offer training and services. This includes integrated modelling, simulation and training solutions for commercial airlines, business aircraft operators, aircraft manufacturers and military organizations and a global network of training centres for pilots, and in some instances, cabin crew and maintenance workers.

With annual revenues of over C$1 billion, CAE operates in 19 countries around the world. CAE has sold nearly 700 simulators and training devices to airlines, aircraft manufacturers, training centres and defence forces for air and ground purposes in more than 40 countries. We have over 110 full-flight simulators in more than 20 aviation training centres, serving approximately 3,500 airlines, aircraft operators and manufacturers across the globe. CAE licenses its simulation software to various market segments and has a professional services division assisting customers with a wide range of simulation-based needs.