CAE wins defence contracts valued at more than C$175 million

MONTREAL, CANADA--(Marketwired - April 6, 2016) - (NYSE:CAE)(TSX:CAE) - CAE today announced that it has won defence contracts valued at more than C$175 million to provide a range of simulation products and training support services for global military customers.

Some of the key contracts include Lockheed Martin awarding CAE a contract to develop Phenom 100 training devices for the United Kingdom's Military Flying Training System (UKMFTS) program; a contract from Canada's Department of National Defence to perform maintenance and support services on flight simulators; a contract to upgrade two CH-47 Chinook dynamic mission simulators at CAE's Medium Support Helicopter Aircrew Training Facility (MSHATF); a contract from Boeing to provide concurrency upgrades on U.S. Navy P-8A operational flight trainers, and a contract for a C-130J Fuselage Trainer for the Royal Australian Air Force.

"These contracts are good examples of defence forces and original equipment manufacturers leveraging CAE's unmatched capability to design and develop high-fidelity synthetic training equipment as well as provide through-life support services and upgrades," said Gene Colabatistto, CAE's Group President, Defence & Security. "The growing demand in defence and security for integrated live-virtual-constructive training is providing us a range of opportunities where we can leverage our experience and expertise as a training systems integrator."

Lockheed Martin/UKMFTS

CAE was awarded a contract by Lockheed Martin to provide Phenom 100 synthetic training equipment in support of the UK's MFTS program. CAE will provide a Phenom 100 full-flight simulator (FFS), a Phenom 100 flight training device (FTD) and four Garmin 1000 part-task trainers. All training devices will be delivered in 2017 to Royal Air Force (RAF) Base Cranwell and used to support multi-engine pilot training as part of the fixed-wing training element of the UKMFTS program.

"We are pleased to once again be selected by Lockheed Martin to provide high-fidelity synthetic training equipment in support of the UK's Military Flying Training System program," said Ian Bell, CAE's Vice President and General Manager, Europe/Middle East/Africa. "We have already provided the Hawk full-mission simulators at RAF Valley, and the tactical mission trainers used for rear-crew and observer training by the RAF and Royal Navy. The fixed-wing element of the UKMFTS program providing elementary, basic, and multi-engine training will offer the UK a modern, integrated training solution, and CAE is proud to play a role in providing part of the ground-based training systems."

Ascent, a joint venture of Lockheed Martin and Babcock, is the Training Services Partner responsible for the UKMFTS program. Recently, Ascent awarded a contract to Affinity for the aircraft that will be provided for the fixed-wing training element of MFTS with the Embraer Phenom 100 selected for multi-engine pilot training. Lockheed Martin has specific responsibility for ground-based training systems for the UKMFTS fixed-wing training element, and awarded CAE the subcontract to develop Phenom 100 synthetic training equipment.

The Phenom 100 FFS and FTD will each include the CAE Medallion-6000 image generator and databases built to the Common Database (CDB) standard, which is an open database architecture that is rapidly updateable and enables distributed, interoperable mission training.

Canada's Department of National Defence

CAE has been awarded a contract to provide the Canadian Forces with simulator maintenance and engineering support services. CAE staff will provide on-site hardware and software maintenance and engineering support services at Canadian Forces Bases (CFB) in Trenton, Ontario; Greenwood, Nova Scotia; Gagetown, New Brunswick; and Comox, British Columbia as well as at the National Defence Headquarters (NDHQ) in Ottawa, Ontario. Specifically, CAE will be responsible for providing support services to the following CAE-built as well as non-CAE-built training devices:

• CC-130 operational flight trainer, CFB Trenton;
• CP-140 flight deck simulator, cockpit procedures trainer, operational mission simulator, maintenance procedure trainer, procedure crew trainer, integrated avionics trainer, and aircraft systems trainers, CFB Greenwood and Comox;
• CH-146 full-flight simulator, CFB Gagetown; and
• Canadian Advanced Synthetic Environment mission rehearsal tactical trainers, NDHQ Ottawa.

UK Ministry of Defence/Royal Air Force

The United Kingdom Ministry of Defence (MOD) has awarded a contract amendment to CAE to upgrade two of the CH-47 Chinook dynamic mission simulators at CAE's Medium Support Helicopter Aircrew Training Facility (MSHATF) at RAF Benson. CAE will install the digital automatic flying control system (DAFCS) in each of the simulators to ensure concurrency with the RAF's CH-47 Chinook Mk6a helicopter. The upgrade of the first Chinook simulator will be complete by the last quarter of 2016 with the second simulator upgraded by mid-2017.

Boeing/U.S. Navy

Boeing has awarded CAE USA a contract to provide a range of upgrades to previously-contracted P-8A operational flight trainers (OFTs) for the United States Navy. CAE will perform hardware and software upgrades to the P-8A OFTs to ensure concurrency with the P-8A aircraft, in addition to providing projector system upgrades for ten P-8A OFTs already delivered to the Navy.

Royal Australian Air Force

CAE Australia Pty Ltd was awarded a contract from Australia's Department of Defence Capability and Acquisition Sustainment Group (CASG) to develop a C-130J Fuselage Cargo Compartment Trainer for the Royal Australian Air Force (RAAF). More details on that contract are available in a separate release issued today and intended for defence trade media.

About CAE

CAE's Defence & Security business unit focuses on helping prepare our customers to develop and maintain the highest levels of mission readiness. We are a world-class training systems integrator offering a comprehensive portfolio of training centres, training services and simulation products across the air, land, sea and public safety market segments. We serve our global defence and security customers through regional operations in Canada; the United States/Latin America; Europe/Middle East/Africa; and Asia/Pacific, all of which leverage the full breadth of CAE's capabilities, technologies and solutions.

CAE is a global leader in delivery of training for the civil aviation, defence and security, and healthcare markets. We design and integrate the industry's most comprehensive training solutions, anchored by the knowledge and expertise of our 8,000 employees, our world-leading simulation technologies and a track record of service and technology innovation spanning seven decades. Our global presence is the broadest in the industry, with 160 sites and training locations in 35 countries, including our joint venture operations, and the world's largest installed base of flight simulators. Each year, we train more than 120,000 civil and defence crewmembers, as well as thousands of healthcare professionals. www.cae.com

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