CAE Australia first defence organisation in Australia to achieve CMMI Level 3 rating for Services

Adelaide, Australia, August 27, 2014 – (NYSE: CAE; TSX: CAE)
Corporate Defence & Security Trade press release

Today at the SimTect/SimHealth show, Australia’s annual conference and exhibition focused on simulation and training, CAE announced that CAE Australia Pty Ltd has achieved the Capability Maturity Model Integration (CMMI) Level 3 rating for Services following an independent CMMI appraisal.

CAE Australia is the first defence contractor in Australia to achieve the CMMI Level 3 rating specifically for Services. Earlier this year, CAE Australia achieved the CMMI Level 3 rating for simulator product development.

“Achieving CMMI Level 3 signals to our customers in Australia that we are always focused on continuous improvement,” said Peter Redman, Vice President and General Manager, CAE Australia. “A culture of continuous improvement at all levels of the company combined with proven processes ensures we are delivering services efficiently, which ultimately leads to lower costs and improved schedules for the Australian Defence Forces.”

CMMI is a process improvement approach that provides organizations with the essential elements of effective processes that ultimately improve their performance. An appraisal at maturity level 3 indicates an organization has processes that are well characterized and understood, and are described in standards, procedures, tools, and methods. The organization's set of standard processes, which is the basis for maturity level 3, is established and improved over time.

“This is a great achievement for CAE Australia, and once again demonstrates that CAE is a company committed to leadership and innovation as a training systems integrator,” said Gene Colabatistto, Group President, Defence and Security, CAE. “In addition to achieving CMMI Level 3 ratings for both products and services, CAE Australia was the first simulation company in Australia to be an Authorised Engineering Organisation for defence. Our vision is to be our customer’s partner of choice for simulation and training, and these achievements in Australia show we are focused on realising this vision.”

Originally developed by the Software Engineering Institute (SEI) of Carnegie Mellon University and now administered by the CMMI Institute, the CMMI process helps advance software engineering and related disciplines to ensure the development and operation of systems with predictable and improved cost, schedule, and quality. CMMI models provide guidance for developing or improving processes that meet the business goals of an organization. A CMMI model may also be used as a framework for appraising the process maturity of the organization. For more information, visit http://cmmiinstitute.com.

CAE is a global leader in providing comprehensive training solutions based on world-leading simulation technology and integrated training services. The company employs 8,000 people at more than 160 sites and training locations in 35 countries. Our vision is to be our customers' Partner of Choice and we take a long-term approach to customer relationships. We offer our civil aviation and defence and security customers a complete range of highly innovative product, service and training centre solutions designed to help them meet their mission critical needs for safety, efficiency and readiness. We provide similar solutions to customers in healthcare and mining. CAE has the largest installed base of civil and military flight simulators, supported by a range of after-sales services, and has been serving the needs of its customers for nearly 70

years. We have the broadest training services network in the world and offer civil aviation, military and helicopter training services in 67 locations worldwide and train more than 120,000 civil and military crewmembers annually. www.cae.com Follow us on Twitter @CAE_Inc and @CAE_Defence

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CAE contacts:

Nathalie Bourque, Vice President, Public Affairs and Global Communications, (514) 734-5788,

[email protected]

Trade media: Chris Stellwag, Director, Marketing Communications – Defence and Security, (813) 887-1242, [email protected]

Investor relations: Andrew Arnovitz, Vice President, Strategy and Investor Relations, (514) 734-5760, [email protected]

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