Netherlands MoD signs two contracts with CAE valued at C$60 million

    - CAE will design and deliver C-130H and KDC-10 full-mission simulators
    - CAE will provide 15 years of maintenance and support services

    MONTREAL, Dec. 13 /CNW Telbec/ - (NYSE:   CGT; TSX: CAE) - CAE announced
today that the Netherlands Ministry of Defence (NL MoD) has signed two
contracts with a combined value of C$60 million ((euro)43 million) for CAE to
design two full-mission simulators (FMS) for the Royal Netherlands Air Force
(RNLAF) as well as provide comprehensive maintenance and support services.
    CAE will design and manufacture one C-130H FMS and one KDC-10 FMS for the
RNLAF to support flight and mission training. Both simulators will be
qualified to Level D standards, the highest qualification for flight
simulators, by the Netherlands Militaire Luchtvaart Autoriteit (Military
Aviation Authority). The simulators will be delivered and made ready for
training in early 2009.
    The RNLAF operates the Lockheed Martin C-130H as a medium-lift transport
aircraft, and operates the KDC-10 as a tanker and strategic transport.
    "We are pleased to continue our long-standing relationship with the Royal
Netherlands Air Force as a provider of state-of-the-art training systems,"
said Marc Parent, CAE's Group President, Simulation Products and Military
Training & Services. "We have been training RNLAF CH-47 Chinook aircrews at
our facility in the U.K. and C-130 aircrews at our facility in Tampa, and now
look forward to providing high fidelity training systems and long term
services to ensure the RNLAF C-130 and KDC-10 aircrews are mission-ready."
    Both simulators will feature CAE's next-generation technology, including
the CAE Medallion(TM)-6000 visual system and Liquid Crystal on Silicon (LCoS)
projectors. Following delivery of the two simulators in 2009, CAE will provide
on-site maintenance and support services.

    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.

For further information:

For further information: CAE contacts: 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, (813)
887-1242,; Investor relations: Andrew Arnovitz, Vice
President, Investor Relations and Strategy, (514) 734-5760,

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