MONTREAL, June 16 /CNW Telbec/ - (NYSE: CGT; TSX: CAE) - CAE has been
awarded a contract to provide Air Canada with two full-flight simulators for
the new Embraer 170 and 190 aircraft, along with a suite of CAE Simfinity(TM)
training devices. Based on list prices (excluding buyer furnished equipment or
BFE), the contract is valued at approximately C$27 million, and represents
CAE's second and third full-flight simulator sales of fiscal 2006.
    The Embraer 170 full-flight simulator is scheduled for installation at
Air Canada's training facility in Toronto in the first quarter of 2006, while
the Embraer 190 simulator will be ready for training in the third quarter of
that year. Both simulators will be equipped with CAE visual systems. The CAE
Simfinity training devices include two three-dimensional trainers (Integrated
Procedures Trainers) and four desktop trainers (Virtual Simulators) for the
Embraer 170 aircraft.
    "We are proud to support Air Canada's fleet renewal program, which
positions Air Canada as a leader among North American carriers," said Marc
Parent, CAE's Group President, Simulation Products. "Air Canada currently
operates nine CAE full-flight simulators for a variety of aircraft types."
    The sale is part of a 10-year general terms agreement signed in 2001 with
Air Canada to provide the carrier with full-flight simulators.
    "Over the years, Air Canada and CAE have forged a very solid business
relationship. We are confident CAE will continue providing us with the leading-
edge training equipment and services that meet our requirements," said Rob
Reid, Executive Vice President and Chief Operating Officer, Air Canada.
    Air Canada is renewing its fleet with Embraer 175 and 190 aircraft that
will be deployed throughout its North American network. The new aircraft will
enable Air Canada to offer more point-to-point, non-stop services with
superior comfort and space in a two-cabin configuration. Air Canada is the
launch customer for the 73-seat Embraer 175 and will begin taking delivery of
15 aircraft in July 2005. The first of 45 Embraer 190 aircraft seating 93
passengers will begin delivery in November 2005.
    CAE built the world's first Embraer 170 and 190 full-flight simulators
and to date, has received a total of eight orders for Embraer 170/190 full-
flight simulators.

    CAE is a leading provider of simulation and modelling technologies as
well as integrated training services for commercial and business aviation, and
defence customers worldwide. The company has annual revenues of approximately
C$1 billion, with operations and training facilities in 17 countries on five
continents.