CAE to acquire Bell Aliant's xwave Defence, Security and Aerospace business



    MONTREAL and HALIFAX, Aug. 5 /CNW/ - CAE (TSX: CAE; NYSE:   CGT) and Bell
Aliant Regional Communications Income Fund ("Bell Aliant") (TSX: BA.UN) today
announced that CAE has signed an asset purchase agreement to acquire Bell
Aliant's Defence, Security and Aerospace (DSA) business unit, currently
operated by the xwave division of Bell Aliant Regional Communications, Limited
Partnership. The purchase price paid on closing will be C$15.1 million with an
additional C$11.0 million to be paid contingent upon the occurrence of certain
events for a potential total purchase price of C$26.1 million.
    xwave's DSA team supplies real-time software and systems for simulation,
training, defence, and integrated lifecycle information management for the
aerospace and defence industries. The division employs approximately
200 people in Ottawa, Ontario; Halifax, Nova Scotia; and Esquimalt, British
Columbia.
    "We are happy to expand CAE's defence capabilities and footprint across
Canada, particularly in Ottawa, Atlantic Canada and British Columbia," said
Marc Parent, CAE's Group President, Simulation Products and Military Training
& Services. "xwave DSA is already a valued partner of CAE on several programs.
By joining CAE and our CAE Professional Services team, xwave's DSA
professionals will provide us with a portfolio of complementary capabilities,
including systems integration that will enhance CAE's ability to serve Canada
as well as the global defence and homeland security markets."
    Over the past year, Bell Aliant conducted a strategic review of its DSA
business and concluded that to further grow the business, it should be
operated by an organization that supports large scale, multi-year and
international projects in this sector.
    "I am pleased that CAE, a Canadian-based company and world leader in the
defence and civil aviation industries, will be leading our DSA business
through the next phase of its growth," said Stephen Wetmore, President and CEO
of Bell Aliant. "We look forward to working with CAE, our employees and
clients through this transition."
    This acquisition is an important step in CAE's strategy to expand the use
of modelling and simulation throughout the defence systems lifecycle. xwave's
DSA unit offers a suite of training products focused on rear crew trainers and
mission rehearsal systems that will further enhance CAE's military training
and services offerings. The acquisition will also allow CAE to add new
customers and capabilities in the electronic warfare market, the land command
and control market, and significantly enhance its presence in the C4ISR
(command, control, communications, computers, intelligence, surveillance and
reconnaissance) domain.
    Some of the key programs involving xwave's DSA include a range of air,
land and sea programs in Canada, such as the Maritime Helicopter Program,
where DSA is providing lifecycle support capabilities. In addition, the DSA
team's electronic warfare technology is currently used by Canadian troops in
Afghanistan. The xwave DSA team is also part of the Lockheed Martin team
pursuing the Canadian Navy's Halifax Class Modernization Program.
    The transaction is subject to customary closing conditions and is
expected to close by the end of the calendar year.

    Caution Concerning Forward-Looking Statements

    This news release contains forward-looking statements relating to the
proposed sale of Bell Aliant's xwave Defence, Security and Aerospace business
unit to CAE. Such statements are made as of the date of this release and are
therefore subject to change after that date. These statements are also subject
to important known and unknown risks, assumptions, uncertainties and other
factors that may cause actual events, results, performance or achievements to
differ materially from those expressed in the forward-looking statements. The
timing and completion of the proposed sale transaction is subject to each of
the parties fulfilling their commitments under the transaction, as well as a
number of other terms and conditions, some of which may be outside of the
control of the parties. Therefore it cannot be guaranteed that any
forward-looking statement will materialize. Bell Aliant and CAE assume no
responsibility for the accuracy and completeness of the forward-looking
statements and, except as may be required by applicable law, disclaim any
intention and assume no obligation to publicly revise these forward-looking
statements to reflect subsequent events or circumstances. Readers should not
place undue reliance on any forward-looking statements.

    About Bell Aliant

    Bell Aliant (TSX: BA.UN) is one of North America's largest regional
communications providers. Through its operating entities it serves customers
in six Canadian provinces with innovative information, communication and
technology services, including voice, data, Internet, video and value-added
business solutions. Through its xwave offices, Bell Aliant also provides IT
professional services in Canada and the US. Bell Aliant's 10,000 employees are
committed to deliver the highest quality of customer service, choice and
convenience.

    About xwave

    xwave, a division of Bell Aliant, is a full-service business-solutions
provider that serves clients through systems integration, infrastructure
services, and advanced technology solutions. These areas offer clients a broad
delivery capability: xwave plans, designs, builds and operates complete
information and communications technology (ICT) solutions that meet
business-process needs and are designed to deliver a measurable return on
technology investments. With almost $300 million in revenues and 1,500 people,
xwave is one of the largest business-solutions organizations in Canada, with
locations in St. John's, Halifax, Moncton, Saint John, Fredericton,
Charlottetown, Summerside, Montréal, Ottawa, Toronto, and New England. More
information can be found at www.xwave.com

    About CAE

    CAE (TSX: CAE; NYSE:   CGT) 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$1.4 billion, CAE employs approximately 7,000 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. www.cae.com
    %SEDAR: 00023938EF




For further information:

For further information: Media relations: Nathalie Bourque, Vice
President, Public Affairs and Global Communications, CAE, (514) 734-5788,
nathalie.bourque@cae.com; Alyson Queen, Bell Aliant Public Affairs, (902)
487-5653, alyson.queen@bell.aliant.ca; Investor relations: Andrew Arnovitz,
Vice President, Investor Relations and Strategy, CAE, (514) 734-5760,
andrew.arnovitz@cae.com; Zeda Redden, Bell Aliant Investor Relations, (902)
487-5726, zeda.redden@bell.aliant.ca

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