CAE wins defence contracts valued at more than C$140 million

CAE today announced that it has won a series of contracts valued at more than C$140 million to provide a range of training systems and services for global defence customers. These include four P-8A simulators sold to Boeing for the United States Navy, a contract to provide an SW4 helicopter simulator for the Polish Air Force, various contracts to provide the German Air Force with a range of training support services, and a contract to provide lifecycle support and maintenance services for PWN’s AW139 simulator in Malaysia. Details on the P-8A contract are included in a separate P-8A trade press release issued today.

“Our core market of virtual aviation training and CAE’s unparalleled global footprint continue to provide a solid base for our defence business as we broaden our approach and leverage our world-class training systems integration capabilities across the air, land, sea and public safety domains,” said Gene Colabatistto, Group President, Defence and Security, CAE. “Poland is a growth market in Europe with a range of opportunities for simulation-based solutions, so we are pleased the Polish Air Force selected CAE to develop a new helicopter simulator and look forward to addressing future requirements.”

Polish Air Force

CAE was awarded a contract to provide an SW-4 helicopter full-flight simulator to support training at the Polish Air Force School in Deblin, Poland. The SW-4, developed in Poland by PZL-Swidnik, an AgustaWestland company, is a multi-role light utility helicopter used by the Polish Air Force for advanced pilot training and other utility missions.

The CAE 3000 Series SW-4 full-flight simulator will be delivered in 2016 and used to support the Polish Air Force’s modernized training program for air force cadets. The CAE 3000 Series simulator will include the CAE True six degree-of-freedom (DOF) electric motion system and high-performance vibration platform to replicate vibration cues critical to helicopter pilots; a high- fidelity CAE Medallion-6000 visual system with Common Database (CDB) architecture; state-of- the-art computer-generated forces tactical environment; and a direct projection 210 degree by 80 degree extreme field-of-view dome display system. The contract also includes computer-based training integrated with CAE’s Learning Management System. CAE will work closely with local Polish industry to design, develop and deliver the comprehensive SW-4 training system and ongoing support services following delivery.

German Air Force

Germany's Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) has contracted CAE to provide a range of on-site training support services for flight simulation equipment. The annual maintenance and logistics support contracts with the German Armed Forces cover a range of flight simulators, including Tornado, C-160 Transall, P-

3C Orion, Mk-41 Sea King and the German Forces' pilot selection system. CAE provides training support services at numerous sites in Germany and the United States to maintain almost every flight simulator in service with the German Armed Forces. Additionally, the training support services CAE provides together with partner companies for the Eurofighter training program in Germany have been extended to include the Wittmund airbase.

PWN Excellence

PWN Excellence Sdn Bhd (PWN), based in Subang, Malaysia, is an Authorised Synthetic Training Centre for AgustaWestland and operates a CAE 3000 Series AW139 full-flight simulator. CAE will provide PWN with comprehensive lifecycle support and maintenance services on the AW139 simulator over the next ten years.

CAE is a global leader in modelling, simulation and training for civil aviation and defence. The company employs approximately 8,000 people at more than 100 sites and training locations in approximately 30 countries. CAE offers civil aviation, military and helicopter training services in more than 50 locations worldwide and trains approximately 100,000 crew members yearly. In addition, the CAE Oxford Aviation Academy offers training to aspiring pilot cadets in 10 CAE- operated flight schools. CAE's business is diversified, ranging from the sale of simulation products to providing comprehensive services such as training and aviation services, integrated enterprise solutions, in-service support and crew sourcing. The company applies simulation expertise and operational experience to help customers enhance safety, improve efficiency, maintain readiness and solve challenging problems. CAE is now leveraging its simulation capabilities in new markets such as healthcare and mining. More information can be found at 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, +1-514-734-5788,

[email protected]

Trade media: Chris Stellwag, Director, Marketing Communications – Defence and Security, +1-813-887-1242, [email protected]

Investor relations: Andrew Arnovitz, Vice President, Investor Relations and Strategy, +1-514- 734-5760, [email protected]