CAE Inc.

CAE Inc.

January 24, 2008 06:00 ET

CAE wins two full-flight simulator and training device orders along with major update contracts valued at C$46 million

MONTREAL, Jan. 24 - (NYSE: CGT; TSX: CAE) - CAE has signed
contracts to design and manufacture two full-flight simulators (FFS) along
with a suite of CAE Simfinity™ training devices, and provide a range of
major simulator updates and services. The contracts are with Qantas, Hainan
Airlines, Airbus, Atlas Air, Singapore Airlines and Virgin Blue. They are
valued at C$46 million at list prices and bring the total FFS sales that CAE
has announced so far in fiscal 2008 to 31.

Two full-flight simulators

Qantas has ordered a CAE 5000 Series Boeing 737NG simulator and a CAE
Simfinity Boeing 737NG Integrated Procedures Trainer (IPT). The simulator will
be delivered to the Qantas training centre in Melbourne, Victoria, Australia
in spring 2008.

"The CAE 5000 Series fulfills market demands for lower acquisition costs,
reduced lifecycle costs and faster delivery times," said Marc Parent, CAE's
Group President, Simulation Products and Military Training & Services. "Qantas
has a well-earned reputation as a premier airline training organization so we
are delighted to add them to our list of customers for the new CAE 5000

Hainan Airlines, China's fourth largest carrier, will receive a
CAE 7000 Series Embraer 190 simulator along with a suite of CAE Simfinity
training devices. The simulator will be delivered in 2008 to the Hainan
Airlines training centre in Sanya, the southernmost city in the Hainan
province. CAE will also provide a CAE Simfinity IPT and CAE Simfinity Virtual
Simulators (VSIMs). In 2007, CAE signed a contract to provide Hainan Airlines
with an Embraer 145 FFS.

Visual system for A350 engineering development simulator

Airbus has ordered the CAE Tropos™-6000 visual system for an Airbus
A350 engineering development simulator.

"We are pleased that Airbus has selected CAE visual system technology to
assist in the concept design, test, and validation phases of the new A350
aircraft development program," said Parent.

The CAE Tropos-6000 visual system combines CAE's proven software with the
latest commercial-off-the-shelf (COTS) graphics technologies to deliver
unprecedented visual realism. The specially designed CAE Tropos-6000 system
for Airbus is mounted on a moveable platform to allow Airbus engineers maximum
flexibility to use the visual system during aircraft design and evaluation.
The CAE Tropos-6000 visual system will be moved between various cockpit
configurations of the Airbus A350 aircraft, which is currently in development.

Update and maintenance services

CAE has signed a contract with Atlas Air, the world's largest operator of
Boeing 747 freighter aircraft, to perform major update services to a
Boeing 747-400 FFS. The update will feature the CAE Tropos-6000 visual system
and liquid crystal on silicon (LCoS) projectors, as well as give Atlas Air the
option to further upgrade the simulator to the new Boeing 747-8 aircraft
configuration. The extensive scope of the update requires CAE to first
relocate the simulator to its Montreal manufacturing facility, following which
it will be delivered to Atlas Air's training centre in Miami, Florida by late
2008. In addition, CAE will provide Atlas Air with a new CAE Simfinity IPT,
convertible to both the Boeing 747-400 and 747-8.

CAE will update two CAE-built FFSs for Singapore Airlines - an
Airbus A340 and Boeing 777 - with CAE's next-generation visual solution,
including the CAE Tropos-6000 visual system and LCoS projectors. In addition,
CAE will upgrade the A340 FFS to include an Airbus A330 configuration,
allowing the simulator to be convertible to both the A330 and A340 aircraft

CAE has also signed a three-year contract with Virgin Blue to provide the
airline with maintenance and support services.

About CAE

CAE is a world leader in providing simulation and modelling technologies
and integrated training solutions for the civil aviation industry and defence
forces around the globe. With annual revenues exceeding C$1 billion, CAE
employs approximately 6,000 people at more than 75 sites and training
locations in 20 countries. We have the largest installed base of civil and
military full-flight simulators and training devices. Through our global
network of 27 civil aviation and military training centres, we train more than
75,000 crewmembers yearly. We also offer modelling and simulation software to
various market segments and through CAE's professional services division, we
assist customers with a wide range of simulation-based needs.

Contact Information

  • Nathalie Bourque,
    Vice President, Public Affairs
    and Global, Communications,
    (514) 734-5788,


    Trade media:
    Chris Stellwag, Director, Marketing Communications,
    Simulation Products and Military Training & Services,


    Investor relations:
    Andrew Arnovitz,
    Vice President, Investor Relations and Strategy,
    (514) 734-5760,