CAE signs C$78 million contract extension with Commonwealth of Australia

SYDNEY, AUSTRALIA (TSX: CAE) - CAE today announced it has been awarded a five-year contract extension by the Commonwealth of Australia valued at approximately AUD$81 million (C$78 million).

During Farnborough, CAE announced C$128 million in civil aviation and military contracts including this training support services contract extension with the Commonwealth of Australia.

The Management and Support of Australian Defence Forces (ADF) Aerospace Simulators (MSAAS) contract, originally signed as a ten-year contract in 2003, has now been extended through 2018. In addition, the MSAAS contract was expanded to include the two MRH90 full-flight and mission simulators (FF&MS) that are currently in development for the ADF.

Under the MSAAS contract, CAE Australia currently provides turnkey training support for the ADF's S-70B Seahawk and Sea King simulators at HMAS Albatross, Nowra; the ADF's S-70A Black Hawk simulator at Army Airfield Oakey; and the ADF's C-130H/J simulators at RAAF Base Richmond.

CAE is also currently designing and manufacturing the A330 Multi-Role Tanker Transport (MRTT) FF&MS for the RAAF, and is prime contractor for the delivery of two MRH90 FFMSs for the ADF. Upon delivery of these new simulators, under the MSAAS contract, CAE will provide similar support for the A330 MRTT training suite when delivered to RAAF Base Amberley, and for the MRH90 training systems when delivered to Army Airfield Oakey and RAAF Base Townsville in 2012.

"This is a key contract for CAE in Australia and we are pleased to continue our long-standing relationship with the ADF as their provider of training services and support for high-fidelity full-mission flight simulators," said Alan Johnson, Managing Director of CAE Australia. "CAE's commitment to in-service support of its simulators, as well as third party devices, demonstrates our customer focus and expertise in the aviation training services sector. CAE has a proven, established track record of supporting ADF aerospace simulators and we are pleased to continue the relationship with the Defence Materiel Organisation in exercising their initial extension option."

Through the MSAAS contract, CAE has established a world class support services capability in Australia and has been certified by the ADF as an Authorised Engineering Organisation (AEO). As AEO for the Commonwealth, CAE provides maintenance and logistics support on-site and through original equipment manufacturers located throughout the world, as well as configuration management, project management and engineering services to ensure the simulators continue to match the aircraft they represent. This is essential to maintain integrity of training, and to maximize the effectiveness of the simulator as a training resource.

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$1.4 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

Contacts: CAE contacts: Nathalie Bourque Vice President, Public Affairs and Global Communications 1-514-734-5788 nathalie.bourque@cae.com Trade media: Chris Stellwag Director, Marketing Communications, Simulation Products and Military Training & Services 1-813-887-1242 chris.stellwag@cae.com Investor relations Andrew Arnovitz Vice President, Investor Relations and Strategy 1-514-734-5760 andrew.arnovitz@cae.com

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