CAE Awarded Contracts for Four Full-Flight Simulators and Training Devices Valued at C$52 Million

MONTREAL, Feb. 28 /PRNewswire-FirstCall/ — (NYSE: CGT; TSX: CAE) – CAE has signed contracts to design and manufacture four full-flight simulators (FFSs) and associated CAE Simfinity(TM) training devices valued at C$52 million at list prices. The contracts are with Lufthansa Flight Training and Xiamen Airlines and bring the total FFS sales that CAE has announced year to date in fiscal 2008 to 35.

Lufthansa Flight Training GmbH (LFT) has ordered a CAE 5000 Series Airbus A320 full-flight simulator (FFS) and a CAE 7000 Series Boeing 747-8 Intercontinental FFS. China-based Xiamen Airlines has ordered two CAE 7000 Series Boeing 737-800 full-flight simulators (FFSs) along with a suite of CAE Simfinity(TM) training devices.

“We are delighted that Lufthansa Flight Training and Xiamen Airlines have placed their trust and confidence in CAE as the industry’s premier provider of true fidelity simulation equipment to support pilot training programs,” said Marc Parent, CAE’s Group President, Simulation Products and Military Training & Services.

Lufthansa Flight Training

The CAE 5000 Series A320 FFS for LFT will be delivered this summer to LFT’s training centre in Frankfurt, Germany and will be used for jet orientation training of Lufthansa’s student pilots as well as for third-party training programs. The simulator will feature the CAE True(TM) electric motion system and CAE Tropos(TM)-6000 visual system. In addition, LFT will also receive the CAE True(TM) Airport service with their CAE 5000 Series A320 FFS. CAE True Airport is a new subscription-based service designed to keep customers’ visual databases current with constantly changing airport environments. The CAE True Airport service offers airlines and third-party training providers operating CAE visual systems concurrency of the airport scenes in the visual databases used for flight training.

The CAE 7000 Series Boeing 747-8I FFS for Lufthansa will be delivered in 2010 to LFT’s training centre in Frankfurt. In addition, CAE will provide LFT with a Boeing 747-400 CAE Simfinity IPT, which can be reconfigured to the B747-8I configuration. LFT is the launch customer for the passenger version of the new Boeing 747-8I aircraft.

“CAE’s market leadership in developing the prototype Boeing 747-8 simulators made them a clear choice for our future 747-8 training needs,” said Florian Hamm, CEO of Lufthansa Flight Training GmbH. “CAE’s 7000 Series B747-8 full-flight simulator will meet the specific Lufthansa training requirements and be available prior to this new aircraft entering service.”

“CAE and LFT have a strong and valued business relationship, and we truly appreciate their continued input in our simulation product developments,” said Parent. “We’re particularly pleased that LFT has once again selected the new 5000 Series, as well as adding LFT to our list of customers for the prototype Boeing 747-8I passenger aircraft.”

   LFT has now ordered a total of 30 CAE flight simulators since 1980.    Xiamen Airlines   

The two B737-800 FFSs for Xiamen Airlines will be delivered in 2009 to the airline’s new training centre near the Gaoqi International Airport. The two B737-800 FFSs will feature the CAE True electric motion system and CAE’s next-generation visual solution, which includes the CAE Tropos-6000 image generator and liquid crystal on silicon (LCoS) projectors. The suite of training devices includes two CAE Simfinity(TM) B737-800 Integrated Procedures Trainers (IPT), a CAE Simfinity(TM) B737-800 and B757 Virtual Simulator (VSIM) and a CAE Simfinity(TM) Virtual Maintenance Trainer (VMT) for the B737-800.

“CAE has a well-earned reputation for industry-leading simulation technology and quality which has played a key role in our success in the Chinese market,” said Parent. “Our true-fidelity suite of simulation equipment will help Xiamen Airlines prepare its pilots to fly its growing fleet of Boeing 737 aircraft as the airline expands in the world’s fastest-growing aviation market.”

Xiamen Airlines, founded in 1984, is the first airline in China organized as a business enterprise with an independently operating legal entity. The company now stands as a medium-sized airline with a fleet of 47 Boeing aircraft, which will expand to 69 by 2010. Having been profitable for 21 consecutive years, the airline is one of the best-performing airlines in China’s civil aviation community for flight safety, passenger service and economic benefits. Since CAAC set up flight safety awards in 1995, which many airlines compete to win, Xiamen Airlines has won the Jinyan Cup from 1995 to 1997, and won the Jinying Cup in 1998 and 2001 and retained that award from 2004 to 2006. It is the only airline in the Chinese aviation industry to win both Cups for three consecutive years. In 2007, Xiamen Airlines successfully finished 159,300 hours of safe flight. Until recently, the airline has maintained a safe flight record of over one million hours. From its main hubs in Xiamen, Fuzhou, Jinjiang, Wuyishan, Hangzhou, Nanchang and Tianjin, it operates over 150 domestic and international routes to most major cities in China and Singapore, Malaysia, Japan and the Republic of Korea. The airline carried nearly 10 million passengers last year.

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 billion, CAE employs approximately 6,000 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.

CAE INC.

CONTACT: CAE contacts: Nathalie Bourque, Vice President, Public Affairsand Global Communications, (514) 734-5788, nathalie.bourque@cae.com; Trademedia: Chris Stellwag, Director, Marketing Communications, Simulation Productsand Military Training & Services, (813) 887-1242, chris.stellwag@cae.com;Investor relations: Andrew Arnovitz, Vice President, Investor Relations andStrategy, (514) 734-5760, andrew.arnovitz@cae.com