CAE's new North East Training Centre set to open in early 2007

Dallas, TX, October 12, 2006 --

(NYSE: CGT; TSX: CAE) - CAE SimuFlite’s new North East Training Centre, located in Whippany, New Jersey near the Morristown airport, is set to open for training in early 2007, as scheduled.

The new centre will open initially with six simulator bays and includes room for expansion.  CAE SimuFlite North East Training Centre will be the home of entitlement training for the new Dassault Falcon 7X aircraft, as well as training for Falcon 900EX EASy, Falcon 2000EX EASy, Gulfstream IV, and Sikorsky S-76 aircraft.

“We and our customers are excited about the opening of the North East Training Centre as we deliver on our commitment to provide high-quality, customized training in locations most convenient to our customers,” said Jeff Roberts, CAE’s Group President, Innovation and Civil Training & Services.

In mid 2004, CAE was selected to provide entitlement training for pilots, maintenance personnel, and cabin crew for the new Falcon 7X aircraft.  The CAE-built Falcon 7X full-flight simulator, the first-ever for this fly-by-wire business jet, has been installed at the centre and is currently undergoing acceptance testing and certification.  Client training is scheduled to begin in March 2007.

“We have formed a training advisory board and worked closely with Dassault and their Falcon 7X customers to develop a comprehensive training program for this innovative aircraft,” said Jeff Roberts.  “This program is clearly evidence that CAE is unique in its ability as a simulation equipment and training service provider to develop integrated training solutions for our customers.”

CAE is moving a Gulfstream IV simulator from its Dallas training centre to the North East centre and will begin Gulfstream IV training in early 2007.  A Sikorsky S-76 simulator, which can reconfigure between the S-76C+ and S-76B, and is the only S-76 Level D simulator to feature full-size chin windows, will be available for training in the first quarter of 2007.  Training on the Falcon 900EX EASy and Falcon 2000EX EASy will begin at the new centre in the second quarter of 2007.

CAE is a world leader in providing simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe. We design, manufacture and supply simulation equipment and offer training and services. This includes integrated modelling, simulation and training solutions for commercial airlines, business aircraft operators, aircraft manufacturers and military organizations and a global network of training centres for pilots, and in some instances, cabin crew and maintenance workers.

With annual revenues of over C$1 billion, CAE operates in 19 countries around the world. CAE has sold nearly 700 simulators and training devices to airlines, aircraft manufacturers, training centres and defence forces for air and ground purposes in more than 40 countries. We have over 100 full-flight simulators in more than 20 aviation training centres, serving approximately 3,500 airlines, aircraft operators and manufacturers across the globe. CAE licenses its simulation software to various market segments and has a professional services division assisting customers with a wide range of simulation-based needs.

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