CGT Cae

CAE (NYSE: CGT)(TSX: CAE) today announced a series of military contracts valued at more than C$55 million. The contracts are with the United Kingdom's Ministry of Defence, German defence procurement agency, Eurofighter Simulation Systems, Lockheed Martin, and other military customers. The contracts are part of CAE's second quarter order intake.

"We continue to see good opportunities for simulation in defence markets around the world," said Marc Parent, CAE's Group President, Simulation Products and Military Training & Services. "The volatile price of fuel, environmental impacts, and significant wear and tear on weapon systems are leading governments and military forces to a greater use of simulation and synthetic training. With our global footprint and expanding capabilities to serve the entire defence systems lifecycle, CAE is well-positioned for solid, steady growth of our military business."

UK Ministry of Defence

CAE has been awarded a contract to perform a major upgrade on one of the CH-47 Chinook simulators located at CAE's Medium Support Helicopter Aircrew Training Facility (MSHATF) at Royal Air Force Station Benson. In addition, CAE will update the courseware, including computer-based training and computer-aided instruction, for the CH-47 groundschool training curriculum. The simulator upgrade and related curriculum update are required as the Royal Air Force prepares to add eight CH-47 Chinook helicopters to its existing fleet as well as transfer additional training hours from live aircraft to synthetic training.

German defence procurement agency and Eurofighter Simulation Systems

CAE has received contracts from the German defence procurement agency (BWB - Bundesamt fur Wehrtechnik und Beschaffung) and Eurofighter Simulation Systems to perform updates on Germany's Tornado and Eurofighter full-mission simulators. Included in these simulator updates is an upgrade to the 10-channel CAE Medallion-6000 visual system on the German Air Force's Tornado full-mission simulator located at Holloman Air Force Base in the United States.

Lockheed Martin

Under subcontract to Lockheed Martin, CAE will continue providing maintenance support services for C-130J training equipment operated by the Aeronautica Militare Italiana (Italian Air Force). CAE will provide a range of support services including maintenance and repair, spare parts support, and integrated logistics support for the CAE-built C-130J training devices located at the National Training Centre in Pisa, Italy.

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.

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