News
CAE wins defence contracts worth more than $110 million

Jan. 8, 2014, Montreal – CAE today announced that it has won contracts
valued at more than $110 million, not including options, to provide a
range of training systems and services for defence customers. The
contracts, which add to CAE's third quarter fiscal year 2014 order
intake, include a new program to provide Beechcraft T-44C aircrew
training for the United States Navy, a foreign military sale contract to
provide an MH-60R Seahawk helicopter simulator for the Royal Danish
Navy, and a contract from Beechcraft to provide a T-6C ground-based
training system (GBTS) for the Mexican Air Force.

"CAE is a
skilled and experienced training systems integrator with the proven
capability to deliver comprehensive, integrated training solutions,"
said Gene Colabatistto, group president, defence and security at CAE.
"We are continuing to be successful with platforms where we have a
strong position such as the MH-60R as well as pursue and win a range of
turnkey training programs, such as the U.S. Navy T-44C. We are
encouraged by the pipeline of global opportunities we have in front of
us in both the traditional defence market as well as adjacencies such as
public safety and security."

U.S. Navy T-44C

CAE USA will
provide comprehensive T-44C aircrew training services at Naval Air
Station (NAS) Corpus Christi in Texas. Under terms of the contract,
which was awarded as a nine-month base contract for US$3.5 million with
an additional six one-year options valued at a total of more than US$30
million, CAE USA will provide T-44C aircrew training services under a
contractor-owned, contractor-operated training program. CAE will be
providing classroom and simulator training for more than 500 students
annually to support the Navy's T-44C aircraft, which is used for
multi-engine intermediate and advanced flight training. As part of the
T-44C aircrew training program, CAE will be providing a suite of new
T-44C training devices to ensure concurrency with the digital, glass
cockpit avionics suite in the T-44C aircraft.

"This is a new
program for CAE USA, and we are honored the U.S. Navy has selected us
following a competitive acquisition process," said Ray Duquette,
president and general manager, CAE USA. "We are also encouraged by the
Navy taking an innovative approach to procuring aircrew training
services under a contractor-owned and contractor-operated training
program. We will provide the required T-44C training devices, and then
put these new training devices into service to support the overall T-44C
training program. We believe this approach to training service delivery
can help our military customers save money, decrease risk, secure
investment and contribute to enhanced training effectiveness."

U.S. Navy/Royal Danish Navy

CAE
was awarded a contract by the U.S. Navy to develop an MH-60R mission
operational flight trainer (MOFT) for the Royal Danish Navy under the
United States foreign military sale (FMS) program. CAE USA will be the
prime contractor responsible for the design and manufacture of an MH-60R
MOFT that will be delivered in 2016 to Karup Air Base in Denmark.

The
MH-60R MOFT is a full-motion simulator with crew positions for the
pilot, tactics officer, and sensor operator. The MH-60R MOFT will also
include an onboard flight instructor station, as well as off-board
stations for the tactics instructor, debriefing, and database
development. The simulator will feature the CAE Medallion-6000 image
generator and common database (CDB) architecture.

The Royal
Danish Navy selected the U.S. Navy's MH-60R Seahawk helicopter in late
2012 as their new naval helicopter for search and rescue and
anti-surface warfare operations, including defending Danish interests in
the North Atlantic, executing anti-piracy operations, and conducting
other missions during international deployments. Denmark is the second
foreign military sale customer for the U.S. Navy's MH-60R helicopter,
following Australia's selection of the MH-60R. The U.S. Navy is
supported by Team Seahawk, which consists of MH-60R airframe
manufacturer Sikorsky Aircraft, mission systems integrator Lockheed
Martin, engine manufacturer GE, sensor supplier Raytheon Corp., and
training supplier CAE.

Beechcraft/Mexican Air Force

CAE
was awarded a contract from Beechcraft Corporation to develop a
comprehensive T-6C GBTS for the Mexican Air Force (FAM). The T-6C GBTS
will include a T-6C operational flight trainer (OFT), computer-based
classroom training systems, and courseware. The T-6C GBTS is part of an
overall training solution Beechcraft is providing to the Mexican Air
Force that includes 12 T-6C+ military trainer aircraft.

The
CAE-built T-6C OFT will include a high-fidelity replica of the T-6C
cockpit with a fully-enclosed 270 degree by 70 degree field-of-view
display system driven by the CAE Medallion-6000 image generator. The
T-6C OFT will also support night-vision goggle training, and feature the
CAE-developed common database (CDB), an open database architecture that
enhances the ability to correlate and rapidly update databases to
support training and mission rehearsal requirements. The T-6C OFT is
designed with the latest technologies to support training that
progresses to fourth and fifth generation lead-in trainer and fighter
platforms. The comprehensive T-6C GBTS will be delivered to the Zopapan
Air Base near Guadalajara in 2015.