CAE Wins Military Contracts in US, UK, and Canada

MONTREAL , Feb. 14 /PRNewswire-FirstCall/ - (NYSE: CGT; TSX: CAE) - CAE has won several military contracts in the United States , the United Kingdom and Canada valued at more than C$41 million.

In the United States , CAE won a competitive procurement to provide the US Marine Corps (USMC) with engineering support services for the training devices of two aircraft, the AV-8B and the KC-130. As prime contractor for the In-Service Engineering Office (ISEO), CAE will provide on-site technical support and engineering change modifications to USMC AV-8B and KC-130 trainers located at Marine Corps Air Station (MCAS) Cherry Point , North Carolina and MCAS Yuma, Arizona. The contract is valued at approximately US$10 million(C$11.5million) over five years and represents a new program for CAE USA.

In the United Kingdom , CAE has won a series of land and flight contracts valued at more than (pnds stlg)8.6 million (C$20 million). CAE will perform a major avionics upgrade to the CAE-built Lynx Mk8 full mission simulator (FMS)at the Royal Naval Air Station (RNAS) Yeovilton. The UK Royal Navy's fleet of Lynx Mk8 helicopters are being upgraded with a new avionics suite called the Second Generation Anti-Jam Tactical UHF Radio for NATO (SATURN). CAE will upgrade the Lynx FMS to ensure concurrency with the operating aircraft.

The UK Royal Navy will also receive a new CAE-built Lynx Crew Procedures Trainer (LCPT) for training both Lynx Mk8 helicopter pilots and rear-crew for integrated crew procedures. The LCPT is based on the CAE Simfinity(R)Integrated Procedures Trainer and will be delivered in September 2008 to the Royal Naval Air Station (RNAS) Yeovilton.

CAE has also won a contract in the UK to upgrade the British Army's Artillery Fire Control Trainers. As part of the upgrade, CAE will provide its CAE Medallion-6000(TM) image generator to produce high-fidelity images used for training artillery observers based on the Warrior Observation Post Vehicle(OPV).

"We continue to have good success in both the US and UK, which are two key markets for our military business," said Marc Parent , CAE's Group President,Simulation Products and Military Training & Services. "CAE has already supplied the defence forces of more than 50 nations with military training systems and services. As militaries continue to look at synthetic training to support their training requirements, we are pleased to see that many of them continue to recognize CAE's focus and breadth of experience in simulation."

In Canada , CAE was awarded a contract for the Technical Investigation and Engineering Services (TIES) program that is valued at up to C$10 million over the next four years. Canada's Department of National Defence (DND) is increasingly using modelling and simulation for a range of requirements,including doctrine development, research and development, experimentation, and training. Under the TIES contract, CAE will serve as prime contractor to provide professional, engineering, and project management services as requiredby the DND.

"We are continuing to grow and expand our modelling and simulation business through both our professional services offerings and comprehensive suite of products," said Parent. "This contract with DND provides the framework for Canada to leverage CAE's experience and expertise in the application of modelling and simulation throughout the defence system lifecycle."

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.


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