Montreal, October 22, 2009 – (NYSE: CAE; TSX: CAE) – CAE today announced a series of military contracts awarded over the past two months valued at more than C$75 million. Included in this total are a number of defence and professional services contracts to support military and homeland security programs in Canada and the United Kingdom as well as a range of other military products and services contracts.

“Growth in our defence and professional services segment continues to be an area of strategic importance for CAE, and we continue to see opportunities for extending the use of modelling and simulation to analysis, training and operational systems,” said Martin Gagné, CAE’s Group President, Military Simulation Products, Training and Services. “Our acquisition of xwave’s Defence, Security, and Aerospace business earlier this year has brought CAE a range of new capabilities in areas such as electronic warfare and tactical mission training, which we are now beginning to harness.”

Lockheed Martin

As part of the United Kingdom’s Military Flying Training System (MFTS) program, Lockheed Martin has awarded CAE a contract to provide ground-based tactical mission training solutions for the UK military. CAE will provide tactical mission trainers to be used for training rear crews and observers in aircraft platforms such as the Nimrod maritime reconnaissance aircraft and Merlin maritime helicopter. CAE’s tactical mission trainers feature realistic tactical displays and high-fidelity sensor and subsystem simulations, including electronic support measures, radar warning receiver, and missile approach warning system. The UK MFTS program is a private finance initiative (PFI) involving the UK Ministry of Defence and Ascent, a joint venture of Lockheed Martin and VT Group. UK MFTS will provide comprehensive training to all new UK military aircrew across the Royal Navy, Army and Royal Air Force (RAF).

Canada’s Department of National Defence

CAE’s Professional Services organization has been awarded the Synthetic Environment Simulation Services standing offer prime contract to support the Canadian Advanced Synthetic Environment (CASE) project for Canada’s Department of National Defence (DND). Under this contract, CAE and several Canadian-based partner companies will support the implementation and operation of simulation-based synthetic environments at various DND establishments. In addition, CAE will explore next-generation simulation technologies to support synthetic environment experiments, mission rehearsals, training exercises and research and development.

Thales Canada

CAE’s Professional Services organization has been awarded a contract by Thales Canada to provide support to the Land Command Support System (LCSS) for Canada’s DND. Under this five-year program, CAE will provide systems engineering services to Thales in support of the Canadian Army’s electronic warfare systems currently in operation.

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 6,500 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, (514) 734-5788, nathalie.bourque@cae.com

Trade media: Chris Stellwag, Director, Marketing Communications, Military and Civil, (813) 887-1242, chris.stellwag@cae.com

Investor relations: Andrew Arnovitz, Vice President, Investor Relations and Strategy, (514) 734-5760, andrew.arnovitz@cae.com

CAE awarded military contracts valued at more than C$75 million