CAE awarded military contracts valued at more than C$60 million

    - CAE to build additional MH-60R helicopter simulator for US Navy
    - CAE to provide concurrency upgrades on C-130J simulators for USAF,
      USMC, and RAF
    - CAE to continue providing support services for USAF C-130J and Canadian
      CF-18 programs
    - CAE continues support of German Armed Forces with series of upgrade and
      maintenance service contracts

    MONTREAL, Aug. 7 /CNW Telbec/ - (NYSE:   CGT; TSX: CAE) CAE today announced
a series of military contracts valued at more than C$60 million. The contracts
are with the US Navy, German procurement office Bundesamt fur Wehrtechnik und
Beschaffung (BWB), and major prime contractors such as Lockheed Martin for
simulation products and training services on a range of military programs.
    The United States Navy exercised contract options for CAE USA to design
and manufacture another MH-60R tactical operational flight trainer (TOFT) as
well as provide further upgrades to the Navy's MH-60S and P-3C operational
flight trainers (OFTs).
    In addition, Lockheed Martin has exercised contract options for CAE to
provide concurrency upgrades on C-130J and KC-130J simulators operated by the
United States Air Force, United States Marine Corps, and Royal Air Force.
These block upgrades will ensure the simulators maintain concurrency with the
operational aircraft.
    CAE has also been awarded contract extensions to continue providing
training and maintenance support services for the United States Air Force
C-130J Maintenance and Aircrew Training System program, as well as provide
avionics software upgrades, integrated logistics support and data management
services for the Canadian Forces CF-18 aircraft. Germany's procurement office
BWB has contracted CAE to provide a range of maintenance support services as
well as provide upgrades to existing Tornado simulators.
    The MH-60R TOFT is the third tactical operational flight trainer that CAE
is now under contract to deliver to the Navy. CAE won the MH-60R program in
2006 and will begin delivering MH-60R TOFTs in late 2008 to Naval Air Station
Mayport. A TOFT consists of two training devices - the operational flight
trainer (OFT) used to train the pilot and co-pilot, and the weapons tactics
trainer (WTT) used to train the sensor operators and rear-crew. When networked
together, the OFT and WTT form the TOFT that provides a total aircrew mission
training solution. CAE is also under contract to design and manufacture four
MH-60S TOFTs for the US Navy. CAE won the MH-60S program in 2004 and began
delivering MH-60S TOFTs in 2006.
    "With our solid program performance and technology leadership in
simulation, military customers and major prime contractors are continuing to
demonstrate their confidence in CAE as a trusted partner," said Marc Parent,
CAE's Group President, Simulation Products and Military Training & Services.
"Our continued success with the US Navy is a perfect example as the Navy has
seen first-hand our helicopter simulation expertise and experience for both
flight and rear crews."
    The MH-60S and MH-60R helicopters form the cornerstone of the Navy's
Helicopter Master Plan with both helicopters sharing a common cockpit and
technology. The Navy plans to procure 254 MH-60R helicopters and 271 MH-60S
helicopters through 2015.

    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 contacts: Nathalie Bourque, Vice President,
Global Communications, (514) 734-5788,; Trade media:
Chris Stellwag, Director, Marketing Communications, Simulation Products and
Military Training & Services, (813) 887-1242,; Investor
relations: Andrew Arnovitz, Vice President, Investor Relations and Strategy,
(514) 734-5760,; On the Web:

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