CAE wins flight training contract for Falcon 7X

Farnborough, U.K., July 19, 2004--

(NYSE: CGT; TSX: CAE) CAE and Dassault Aviation have signed a contract making CAE the exclusive provider of entitlement training for the all-new, 5700 nm Falcon 7X, the first fly-by-wire business jet.

Included in this agreement is entitlement training for pilots, maintenance personnel and cabin crew. Entitlement training is the initial training provided by the aircraft manufacturer with the purchase of the aircraft.

CAE will develop two Falcon 7X full-flight simulators and a comprehensive training program that will incorporate CAE Simfinity™ technology. In addition, CAE will develop two Falcon 900 EX EASy/Falcon 2000 EX EASy convertible full-flight simulators and associated training programs also incorporating CAE Simfinity technology. The programs will support training for the EASy cockpits, with all four simulators being deployed in North America and Europe beginning in the fall of 2006. The simulators will be outfitted with the CAE Tropos™ visual system.

According to John Rosanvallon, president and chief executive officer for Dassault Falcon Jet, "After a thorough selection process, we felt CAE offered the most competitive business and technical package related to the Falcon 7X program. CAE's world-renowned technology and extensive experience in delivering training to the business aviation community will help us to ensure the successful launch of this exciting new aircraft."

"Becoming the exclusive provider of entitlement training for this new and innovative aircraft is a strategic milestone for us," said Jeff Roberts, CAE's group president for civil simulation and training. "The Dassault Falcon 7X program extends our vast suite of training programs for business aircraft operators and taps into our technology leadership and simulation experience with new aircraft types."

The Falcon 7X is the first aircraft to be developed entirely in a virtual environment-from design to manufacturing to maintenance. It offers 20 per cent more cabin volume than the Falcon 900EX.

This agreement builds on CAE's previous relationship with Dassault, which includes CAE SimuFlite's development of a training curriculum for maintenance technicians for the Falcon 50/50EX, 900/900EX and 2000/2000EX aircraft.

Dassault Falcon has delivered over 1600 business jets since the first Falcon 20 flew in 1963. Parent company, Dassault Aviation is a recognized leader in aerospace having delivered over 7500 military and civilian aircraft since 1945 (EUR 3.30 billion in sales; 11,950 employees), with a presence in more than 70 countries across five continents.

CAE is a leading provider of simulation technologies and integrated training services to airlines, aircraft manufacturers, defence forces, and marine customers worldwide. The company has annual revenues in excess of C$1 billion, with manufacturing operations and training facilities in 19 countries on five continents.

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