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(TSX: CAE)(NYSE: CGT) - CAE today announced a series of military contracts valued at more than C$80 million. Key customers include the United States Navy and Army, Boeing, Lockheed Martin, NATO, as well as the German defence procurement agency.

"We are continuing to see solid opportunities for modelling, simulation and training services in defence markets around the world," said Marc Parent, CAE's Chief Operating Officer. "Our strong position on key platforms, such as the C-130 and MH-60S/R, along with governments and militaries looking to expand their use of synthetic training should position us well for steady growth of our military business."

United States Navy

The United States Navy exercised a contract option for CAE USA to design and manufacture another MH-60S operational flight trainer (OFT). The MH-60S OFT will be the seventh that CAE is now under contract to deliver to the Navy. CAE won the MH-60S program in 2004 and began delivering MH-60S simulators to the U.S. Navy in 2006. CAE USA is also the prime contractor responsible for designing and manufacturing MH-60R tactical operational flight trainers (TOFTs) for the U.S. Navy.

United States Army

The U.S. Army Program Executive Office for Simulation, Training, and Instrumentation (PEO STRI) has exercised a contract option for CAE USA to continue development and services as part of the Synthetic Environment Core (SE Core) program. Under this program, CAE USA's Professional Services organization operates a rapid database production facility in Orlando, Florida for the U.S. Army.

Boeing Company

CAE has been awarded a contract from The Boeing Company to manufacture an Engineering Flight Simulator (EFS) to be used in the development of the U.S. Navy P-8A Poseidon maritime patrol aircraft. The P-8A EFS will serve as an engineering development tool in a systems integration lab to test and validate various mission scenarios. In addition, the device will be used to familiarize aircrews with the P-8A Poseidon. CAE will deliver the P-8A EFS flight deck and flight crew controls to be used at Boeing's Weapon System Integration Laboratory in Kent, Washington. Ultimately, Boeing will deliver the device to the Navy's Patuxent River Naval Air Station, Maryland. This work follows an earlier contract for CAE to manufacture the prototype P- 8A Poseidon operational flight trainer.

Lockheed Martin

Lockheed Martin has exercised annual contract options for CAE USA to continue providing training support services as part of the U.S. Air Force's C-130J Maintenance and Aircrew Training System program and C-130E/H Aircrew Training System program. CAE USA is responsible for providing a range of training and maintenance services, including simulator upgrades, training device maintenance, and hardware and software engineering support.

NATO

The NATO Airborne Early Warning and Control (AEW&C) Program Management Agency (NAPMA) have contracted CAE to design and manufacture an E-3A flight training device (FTD). CAE will deliver the E-3A FTD to the NATO main operating base in Geilenkirchen, Germany in 2010, where it will be used alongside the CAE-built E-3A flight deck simulator for training NATO E-3A aircrews.

The NATO Maintenance and Supply Agency (NAMSA) have contracted CAE, in partnership with Rheinmetall Defence Electronics, to upgrade one of the EC135 full-flight simulators located at the German Army Aviation School at Buckeburg. As part of this upgrade, CAE will provide its CAE Medallion-6000 image generator and support the integration of the CAE-developed common database (CDB), an open standard database architecture.

German BWB

Germany's procurement office BWB (Bundesamt fur Wehrtechnik und Beschaffung) has contracted CAE to provide a range of on-site maintenance support and logistics services for flight simulation equipment. CAE's annual maintenance and logistics support contracts with the German Armed Forces cover a range of flight simulators, including Tornado multi-role-combat aircraft, as well as helicopters such as the CH-53, UH-1 and EC135. CAE provides services in several sites in Germany and the United States to maintain almost every flight simulator in service with the German Armed Forces.

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 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