CAE Celebrates 60 Years of Innovation and Launches CAE 5000 Series Full-flight Simulator

MONTREAL , March 28 /PRNewswire-FirstCall/ - (NYSE: CGT; TSX: CAE) - CAE celebrated today 60 years of innovation with employees, customers and guestsfrom around the world.

Mr. Robert E. Brown, CAE's President and Chief Executive Officer, dedicated the celebration to past and present employees. "Our employees have made this company the leader it is today. Thanks to their dedication and commitment, CAE has developed expertise and knowledge recognized around the world."

CAE marked the event by launching a breakthrough product, the CAE 5000 Series full-flight simulator. This new product addresses training requirements for high-volume commercial narrow-body aircraft such as the B737 and the A320, as well as the business jet market including the emerging Very Light Jets(VLJs).

"Over the years, CAE has lead the industry with more than 60 firsts, including the first six-degrees-of-freedom motion system, first Level Dsimulator, first PC-based suite of training devices featuring high-fidelity software, and many prototype simulators for new aircraft. Today, CAE is also innovating by adding a new line of full-flight simulators called the CAE 5000 Series which broadens what is already the industry's most comprehensive portfolio of simulation and training solutions," Mr. Brown added.

The 5000 Series is a direct result of input from CAE's customer and technical advisory boards, CAE's own training instructors, and close coordination with regulatory agencies worldwide. Customers wanted CAE's quality, reliability and fidelity in a product that would help them be more cost efficient and address specific training requirements, including:

- Initial and recurrent training on narrow-body platforms (A320, 737NG), which are expected to account for 60% of aircraft deliveries over the next 20 years

- Business aviation training, including the emerging VLJ segment

- Third-party training, including emerging Multi-crew Pilot License (MPL) training programs designed to address the global pilot shortage

"We believe we have brought to our customers the most innovative solution designed specifically to meet evolving training requirements brought about by new regulations, new aircraft types and emerging markets," said Marc Parent, CAE's Group President, Simulation Products and Military Training & Services. "The CAE 5000 Series meets market demands for lower acquisition costs, reduced lifecycle costs and faster delivery times, and offers CAE's renowned quality and reliability together with the broadest global customer support capabilities in the industry."

The CAE 5000 Series launch customers are:

- Lufthansa Flight Training: Lufthansa Flight Training has signed a contract for an Airbus A320 5000 Series full-flight simulator (FFS). This contract brings to 34 the number of full-flight simulator orders CAE has announced in fiscal 2007.

- Ryanair: The five FFS announced and ordered by the airline in October 2006 will all be CAE 5000 Series FFSs.

- CAE's own global training network: CAE is currently designing and manufacturing one 5000 Series FFS for each of the A320 and B737 aircraft types, and will deploy them within CAE's global training network early next year. The CAE 5000 Series will also be used in the CAE-Airbus pilot-training cooperation.

It is expected that the simulators that will be used in the Embraer-CAE joint venture will be CAE 5000 Series. The joint venture with Embraer announced in October 2006 will provide comprehensive pilot and ground crew training to Embraer Phenom customers.

"Lufthansa Flight Training has been intimately involved in the product definition and design of the CAE 5000 Series, as part of CAE's customer and technical advisory boards," said Florian Hamm, CEO of Lufthansa Flight Training GmbH. "LFT is well known as a front-runner in implementing innovative technology. We are looking forward to having a 5000 Series simulator ready for training at our training centre in Berlin in 2008."

"The 5000 Series represents a breakthrough in innovative design," commented Jacques Drappier, Airbus' Vice President, Training and Operations. "It will serve well the training requirements of the customers of the CAE-Airbus training cooperation."

The new CAE 5000 Series is a complementary product between the CAE Simfinity(R) line of training devices and CAE's existing, customized Level Dsimulator, which has also been enhanced and upgraded with the latest technologies and is now called the CAE 7000 Series.

CAE 5000 Series simulators for both the B737NG and Airbus A320 will be available in early 2008. List prices will depend on the aircraft platform and configuration, and will range from C$8 to C$11 million.

For more information on the CAE 5000 Series FFS, visit www.cae.com/5000.

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 defense 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 ofsimulation-based needs.

SOURCE CAE INC.


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