CAE awarded military contracts valued at more than C$115 million

MONTREAL, CANADA--(Marketwire - July 5, 2011) - (NYSE:CAE)(TSX:CAE) – CAE today announced it has been awarded a series of military contracts valued at more than C$115 million, including a contract from the United States Navy to develop two MH-60R helicopter simulators, a contract from Boeing to design and manufacture training devices as part of the C-130 Avionics Modernization Program (AMP) for the United States Air Force, a contract from Professional Way in Malaysia to build a CAE 3000 Series AW139 full-flight simulator and a contract from the United States Army to develop a suite of Abrams tank maintenance trainers.

"We are continuing to see good opportunities globally for both products and training services on platforms where CAE is well-positioned, such as the C-130 and a range of rotary-wing aircraft," said Martin Gagné, CAE's Group President, Military Products, Training and Services. "Earlier this year we completed a small acquisition to expand our capabilities in the adjacent market of land simulation, and we are pleased to win some follow-on business from the U.S. Army to build additional Abrams tank maintenance trainers."

United States Navy

The United States Navy has exercised contract options for CAE USA to design and manufacture two additional MH-60R tactical operational flight trainers (TOFTs). The first simulator will be a fixed-based MH-60R TOFT delivered to Naval Air Station (NAS) Jacksonville, USA, in late 2013. The other MH-60R TOFT will also be a fixed-based simulator delivered to the Marine Corps Air Station (MCAS) at Kaneohe Bay, Hawaii, USA, in late 2013. CAE USA is now under contract or has delivered a total of eight MH-60R TOFTs to the United States Navy since winning a competitive procurement in 2006.

Boeing/U.S. Air Force

Under subcontract to Boeing, CAE will design and manufacture a new C-130 Avionics Modernization Program (AMP) weapon systems trainer (WST) and produce a second C-130 AMP avionics part task trainer (APTT) for the United States Air Force. The training devices will be delivered to the C-130 Aircrew Training System at Little Rock Air Force Base, USA, in 2014. CAE has been working with Boeing on the C-130 AMP since 2006 and has already delivered one C-130 WST modified to the AMP configuration and one C-130 AMP APTT, which were both declared ready-for-training in 2009.

Professional Way

Professional Way Sdn Bhd, a Malaysia-based company, has purchased a CAE 3000 Series full-flight simulator (FFS) replicating the AW139 aircraft. The simulator will be deployed to a new training centre to be established by Professional Way near Kuala Lumpur's Sultan Abdul Aziz Shah Airport. Professional Way will then deliver AW139 simulator training for AgustaWestland's recently announced Authorized Training Centre in Malaysia to serve customers in the Far and Southeast Asian regions. The AW139 FFS, to be delivered in late 2012, will be jointly developed by CAE and AgustaWestland. The simulator will be qualified to Level D, the highest qualification for flight simulators.

U.S. Army

CAE USA signed a contract with the U.S. Army's Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) to design and manufacture five additional Abrams tank maintenance training systems, referred to as Abrams hands-on trainers (HOTs). The Abrams HOTs are high-fidelity replicas of the Abrams tank turret and are designed to give maintenance technicians diagnostic and hands-on training. The Abrams HOTs will be delivered in 2013 and 2014 to Army bases in the United States: at Ft. Benning, Georgia and Ft. Lee, Virginia; and to the National Guard facility at Gowen Field, Idaho.

CAE is a global leader in modeling, simulation and training for civil aviation and defence. The company employs more than 7,500 people at more than 100 sites and training locations in more than 20 countries. Through CAE's global network of 32 civil aviation, military and helicopter training centres, the company trains more than 80,000 crewmembers yearly. CAE's business is diversified, ranging from the sale of simulation products to providing comprehensive services such as training and aviation services, professional services and in-service support. The company aims to apply its simulation expertise and operational experience to help customers enhance safety, improve efficiency, maintain readiness and solve challenging problems. CAE is now leveraging its simulation capabilities in new markets such as healthcare and mining. www.cae.com