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

MONTREAL, Aug. 7 /PRNewswire-FirstCall/ - (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.

Source: CAE INC.

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