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(TSX: CAE)(NYSE: CGT) - CAE today announced a series of military contracts valued at up to C$106 million. The contracts are with Canada's Department of National Defence, L-3 Communications, the United States Navy, Eurofighter Simulation Systems (ESS), and small business prime contractor C2 Technologies. The contracts include more than C$71 million in firm orders with an additional C$35 million in contract options.

"We continue to see strong opportunities in the global military market for our portfolio of products and services, as evidenced by these contracts valued at up to C$106 million in addition to our Rotorsim announcement last week which is worth more than C$40 million to CAE," said Marc Parent, CAE's Group President, Simulation Products and Military Training & Services. "It is encouraging to see defence forces looking more and more to modelling, simulation and support services to address challenges such as maintaining readiness, high operational demand on aircraft and increasing fuel costs. With our global footprint and expanding capabilities to serve the entire defence systems lifecycle, CAE is well-placed for success in our military business."

Canada's Department of National Defence

CAE was selected as prime contractor in Canada for a program called the Air Force Integrated Information and Learning Environment (AFIILE). Under this program, CAE's Professional Services group will provide an integrated information and learning environment that gives the Air Force a common operating platform for training. CAE has assembled a team of service and technology partners to deliver the AFIILE solution, including xwave, Saba, Outstart Evolution, Britannica Fox Knowledge Systems Fox, Atlantis-Eduplus, and NGRAIN.

"The AFIILE program helps further establish CAE's leadership position in military training services in Canada," said Parent. "We will deliver a performance-oriented training solution to Canada's Department of National Defence that will reduce the training time required to achieve proficiency while increasing overall training capacity."

L-3 Communications

CAE has been awarded a one-year contract by L-3 Communications MAS (Canada) Inc., a subsidiary of L-3 Communications (NYSE: LLL) for CAE to continue providing avionics software upgrades, integrated logistics support and data management services for the Canadian Forces CF-18 aircraft. L-3 MAS has been prime contractor on the CF-18 service and support program since 1986 and CAE has been performing systems engineering support services for the CF-18 fleet for more than twenty years.

United States Navy

The United States Navy exercised a contract option for CAE USA to design and manufacture another MH-60R tactical operational flight trainer (TOFT). The MH-60R TOFT will be the fourth 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 later this year to Naval Air Station Mayport.

CAE USA has also won a new five-year contract from the Navy to provide services for a range of U.S. Navy and U.S. Marine Corps (USMC) training devices. Under a program called the Western Pacific Contractor Operations and Maintenance Services, CAE USA will provide maintenance services on aircrew training devices at three sites in Japan.

Eurofighter Simulation Systems

CAE has received a contract from Eurofighter Simulation Systems to update and deliver enhanced synthetic environment software for the full mission simulators (FMS) and cockpit trainers as part of the Eurofighter Aircrew Synthetic Training Aids (ASTA) program. The enhanced synthetic environment software is for Eurofighter ASTA production systems in Germany, Italy, Spain and the United Kingdom. Additionally, for the German systems, CAE is responsible for installation and commissioning of the Eurofighter training devices in Germany.

C2 Technologies

C2 Technologies, a small business in the United States, has subcontracted CAE USA to provide contract aircrew training and courseware development services for the United States Air Force's A-10 and EC-130 training program. The services will be provided over the next five years at Davis-Monthan Air Force Base in Arizona.

About CAE

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