CAE Awarded Military Contracts Valued At Up to C$106 Million

CAE today announced a series of military contracts valued at up to C$106 million. The contracts are with Canada's Department of National Defence, L-3 Communications, the United States Navy, Eurofighter Simulation Systems (ESS), and small business prime contractor C2 Technologies. The contracts include more than C$71 million in firm orders with an additional C$35 million in contract options. "We continue to see strong opportunities in the global military market for our portfolio of products and services, as evidenced by these contracts valued at up to C$106 million in addition to our Rotorsim announcement last week which is worth more than C$40 million to CAE," said Marc Parent, CAE's Group President, Simulation Products and Military Training & Services. "It is encouraging to see defence forces looking more and more to modelling, simulation and support services to address challenges such as maintaining readiness, high operational demand on aircraft and increasing fuel costs. With our global footprint and expanding capabilities to serve the entire defence systems lifecycle, CAE is well-placed for success in our military business". CAE was selected as prime contractor in Canada for a program called the Air Force Integrated Information and Learning Environment (AFIILE). Under this program, CAE's Professional Services group will provide an integrated information and learning environment that gives the Air Force a common operating platform for training. CAE has assembled a team of service and technology partners to deliver the AFIILE solution, including xwave, Saba, Outstart Evolution, Britannica Fox Knowledge Systems Fox, Atlantis-Eduplus, and NGRAIN. "The AFIILE program helps further establish CAE's leadership position in military training services in Canada," said Parent. "We will deliver a performance-oriented training solution to Canada's Department of National Defence that will reduce the training time required to achieve proficiency while increasing overall training capacity". CAE has been awarded a one-year contract by L-3 Communications MAS (Canada) Inc., a subsidiary of L-3 Communications for CAE to continue providing avionics software upgrades, integrated logistics support and data management services for the Canadian Forces CF-18 aircraft. L-3 MAS has been prime contractor on the CF-18 service and support program since 1986 and CAE has been performing systems engineering support services for the CF-18 fleet for more than twenty years. The United States Navy exercised a contract option for CAE USA to design and manufacture another MH-60R tactical operational flight trainer (TOFT). The MH-60R TOFT will be the fourth that CAE is now under contract to deliver to the Navy. CAE won the MH-60R program in 2006 and will begin delivering MH-60R TOFTs later this year to Naval Air Station Mayport.