CAE further increases its position in the modelling and simulation market with the acquisition of MultiGen-Paradigm



    MONTREAL, April 20 /CNW Telbec/ - (NYSE:   CGT; TSX: CAE) - CAE announced
today the company has signed an agreement with Parallax Capital Partners, LLC
and others to acquire MultiGen Paradigm Inc., for US$16 million (C$18 million)
in cash. The acquisition is expected to be concluded in May 2007, subject to
US government approvals.
    MultiGen-Paradigm is a leading supplier of real-time,
commercial-off-the-shelf (COTS) software for creating and visualizing
simulation solutions.
    "We want to offer our customers a one-stop shop for their modelling and
simulation needs, where they will be able to receive the industry's most
comprehensive, integrated suite of COTS software products, and, in addition,
have access to a full complement of professional services. The acquisition of
MultiGen-Paradigm is expected to accelerate our growth in this important
market," said Marc Parent, CAE's Group President, Simulation Products and
Military Training & Services (MT&S).
    "Becoming part of one of the world's leading simulation and training
companies is great news for MultiGen-Paradigm," said Sandeep Divekar, Chief
Executive Officer of MultiGen-Paradigm. "As CAE builds its COTS software
capabilities, we have the opportunity to play a key role in contributing to
the growth and expansion of modelling and simulation."
    MultiGen-Paradigm develops COTS software used by a range of customers to
create and visualize three-dimensional (3D), real-time simulations. The
company's core products include MultiGen Creator(TM), a simulation software
toolset for real-time 3D modelling, terrain, and synthetic environment
creation; Creator Terrain Studio(TM), a software framework that helps manage
the synthetic environment creation process; Vega-Prime(TM), software designed
for the rapid creation and deployment of real-time 3D simulation applications;
and Lyra(TM), a visual simulation application that provides plug-and-play
compatibility for various image generators. In addition, MultiGen-Paradigm
created and continues to develop industry standard visual simulation file
formats, including OpenFlight and MetaFlight. The company presently has more
than 3,000 customers.

    CAE's Modelling and Simulation Growth Strategy

    CAE is recognized as a global leader in the provision of modelling and
simulation-based training solutions. Modelling and simulation is used in many
areas that go beyond traditional pilot training, and involve civil, government
and military markets. Recognizing the larger value of CAE's core modelling and
simulation technologies, the Company embarked on a growth strategy two years
ago that has involved a number of acquisitions and developments.
    On the services side, CAE has established a simulation-based professional
services practice with locations in Canada, the United States, Europe and
Australia. On the products side, CAE is working to provide the industry's most
comprehensive and most fully integrated suite of COTS software products
available for modelling and simulation. The past acquisition of TERREX, recent
acquisition of control of Engenuity, and this acquisition of MultiGen
Paradigm, will be combined with some of CAE's internal resources to create a
single, integrated COTS software business. CAE expects the acquisition of
MultiGen Paradigm to be slightly accretive in the coming years. The COTS
software business within CAE will include separate engineering and sales staff
who operate independently from CAE's traditional simulation and training
business. The recent addition of Kesem International Pty in Australia will
also contribute modelling and simulation COTS products to the product line in
the future.

    MultiGen-Paradigm was formed in 1998 following the merger of MultiGen,
founded in 1981 in San Jose, California, and Paradigm Simulation, founded in
1990 in Dallas, Texas. The company is based in Dallas with offices in Santa
Clara, California. MultiGen Paradigm's products and services support
corporations, government agencies, and universities in several markets,
including: commercial and military simulation, urban simulation, and 3D
geographical information system simulation. MultiGen-Paradigm sells its
products and services through direct and indirect channels in North America
and Europe, and licenses its technology to original equipment manufacturers.

    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.




For further information:

For further information: CAE: Nathalie Bourque, Vice President, Global
Communications, (514) 734-5788, nathalie.bourque@cae.com; Trade media: Chris
Stellwag, Director, Marketing Communications, Simulation Products and Military
Training & Services, (813) 887-1242, chris.stellwag@cae.com; Investor
relations: Andrew Arnovitz, Director, Investor Relations, (514) 734-5760,
andrew.arnovitz@cae.com; On the Web: www.cae.com

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