Montreal, June 10, 2009 – (NYSE: CGT; TSX: CAE) – CAE today announced a series of military contracts valued at more than C$80 million. Key customers include the United Kingdom Ministry of Defence, United States Navy and other global militaries.

“In the first two months of our new fiscal year, we are continuing to see momentum in our Military market segments as defence customers look to expand their use of synthetic training,” said Martin Gagné, CAE’s Group President, Military Simulation Products, Training and Services. “Simulation offers a number of advantages, most notably cost advantages as well as the ability to practice and rehearse different mission scenarios.”

United Kingdom Ministry of Defence

The United Kingdom Ministry of Defence (MoD) has contracted CAE Aircrew Training Services plc to perform major upgrades on two of the CH-47 Chinook full-mission simulators located at CAE's Medium Support Helicopter Aircrew Training Facility (MSHATF) at Royal Air Force Station Benson. The investment being made by the UK MoD in these upgrades will provide a significant enhancement to operational training and mission rehearsal capabilities for Royal Air Force (RAF) CH-47 Chinook aircrews.

United States Navy

The United States Navy has contracted CAE USA to perform major upgrades on two MH-60S operational flight trainers located at Naval Air Station (NAS) North Island. CAE will provide a range of simulator upgrades, including the addition of simulation software to support training for organic airborne mine countermeasures (OAMCM). The MH-60S helicopter is used by the U.S. Navy for airborne mine countermeasures, combat search and rescue, anti-surface warfare, and carrier plane guard.

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$1.6 billion, CAE employs more than 6,000 people at more than 90 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 29 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

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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, Civil and Military, +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

CAE awarded military contracts valued at more than C$80 million