Government of India signs an MOU with CAE to provide pilot training in two schools

    - More than 400 pilots would be licensed annually

    LE BOURGET, Paris, June 19 /CNW Telbec/ - (NYSE:   CGT; TSX: CAE) - CAE has
signed a memorandum of understanding for a joint venture with the Airport
Authority of India (AAI) to develop the National Flying Training Institute
(NFTI). CAE has also signed a memorandum of understanding to become the
managing partner of the Indian government's flight training academy: Indira
Gandhi Rashtriya Uran Akademi (IGRUA).
    More than 400 pilots would be licensed annually through these new
schools. The total output would grow to over 600 pilots with the Multi Pilot
Licence (MPL) stream of licensing.
    "The selection of CAE by the government of India for these schools is a
significant milestone for flight training in India," said Jeff Roberts, CAE's
Group President, Innovation and Civil Training & Services. "Given our
extensive experience in building world-class flight-training organizations, we
intend to provide India with the expertise and support they need to develop a
solid infrastructure and implement the most modern standards in flight
training. With these new schools, which would complement our upcoming training
centre in Bangalore, we will be able to address the need for pilots in India."
    "Creating these world-class institutions in-country with CAE as our
partner is a major government initiative targeted at tackling both the acute
shortage of Indian pilots while improving the overall quality of the cadet
supply within India," said The Honourable Praful Patel, India's Minister of
Civil Aviation. "Today there are approximately 2,500 active pilots in India
and we estimate that we will need up to an additional 5,000 pilots over the
next 5 years to meet the needs of the industry. These initiatives will go a
long way to help remedy our pilot shortage."
    Over the next decade, the rapid growth in air travel will generate an
enormous demand for pilots, cabin crew, maintenance staff and infrastructure
to support this growth. The Air Passengers Association of India estimates that
the annual air traffic growth rate in the country has been around 26% over the
past two years, causing the Indian airline industry to order approximately 400
new aircraft, to be delivered by 2010.
    Once final agreements are signed, CAE will offer these schools the
possibility of becoming members of the CAE Global Academy. The CAE Global
Academy is a worldwide network of flight training organizations that offers
pilot candidates an optimized program with standard operating procedures. CAE
currently has six member schools in its Global Academy and can license
annually 1,000 pilots. Once they have graduated from the Academy, the new
first officers are able to proceed for type-rating in one of CAE's training
centres, including CAE's upcoming training centre in Bangalore. CAE has
contracts with several airlines to supply them with pilots. CAE has recruited,
trained and supplied more than 800 pilots for commercial airlines over the
last year.

    Joint venture with AAI

    Under the terms of the memorandum of understanding, the National Flying
Training Institute will be jointly owned by CAE and AAI. Located at GONDIA in
the State of Maharashtra, the Institute will include a state-of-the-art
facility equipped with classrooms, a hostel, a library, a workshop, a
cafeteria, a guest house and a club. The school will operate new aircraft, and
will use CAE's courseware and innovative training equipment. The total
investment for NFTI is approximately US$25 million. When fully operational, it
is estimated that the NFTI will create approximately 200 pilots a year.

    Managing partner of IGRUA

    Under the terms of the memorandum of understanding, CAE will manage
IGRUA's existing flight school activities, including maintenance of aircraft,
flying operations, air traffic control, runway maintenance, NAV aids, fire
fighting facilities, medical facilities, security, staff and student
facilities, as well as transportation.
    As part of the memorandum of understanding, CAE will transform IGRUA into
a Centre of Excellence for India, leading the Indian market in the delivery of
a complete range of high-quality aviation training programs. IGRUA currently
licenses 200 pilots annually.

    Indira Gandhi Rashtriya Uran Akademi (IGRUA) is the Indian government's
national flying school located at the Fursatganj Airport in Rae Bareli. Opened
in 1986, it is equipped with aircraft including a Trinidad TB-20, a King Air
C-90A and a Zlin 242L. It also includes a full-flight simulator for a King Air
C-90A and cockpit procedure trainers for the Trinidad TB-20. IGRUA currently
employs 250 people.

    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, mobile: (514) 887-5599,; Trade media: Linda Tardif, Director, Marketing,
Innovation and Civil Training & Services, (514) 531- 2130,; Investor relations: Andrew Arnovitz, Vice President,
Investor Relations and Special Projects, (514) 734-5760,; High-resolution photos of the ceremonial signing will
be available on after 12 pm EST June 19, 2007.

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