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(NYSE: CGT) (TSX: CAE) - Today at the Paris Air Show, CAE announced it has been selected as one of the CSeries(i) suppliers to support Bombardier in the design, integration and development of the CSeries aircraft program, and to support the aircraft's entry into service (EIS) training program.

The contract with Bombardier includes the design and manufacture of an engineering development simulator as well as the prototype full-flight simulator (FFS) for the CSeries aircraft. These two simulators bring the total simulator sales that CAE has announced so far in fiscal 2010 to four.

Under the agreement with Bombardier, CAE will first provide a comprehensive suite of products, engineering services and simulation-based technology tools to support the design, testing and certification of the CSeries platform as part of Bombardier's Complete Integrated Aircraft Systems Test Aircraft (CIASTA) program. All research and development for this project will be done in Montreal, Canada. CAE will then design and deliver the prototype FFS, a CAE 7000 Series simulator, as well as a full suite of CAE Simfinity(TM) training devices to support the aircraft EIS and Bombardier flight and technical training.

CAE is launching a new suite of products and services as part of Bombardier's CIASTA program called the CAE Augmented Engineering Environment(TM). The CAE Augmented Engineering Environment includes a modelling and simulation environment that will allow original equipment manufacturers (OEMs) to evaluate, test, and validate a range of aircraft models and systems during the development phase. As part of the program, CAE will deliver an engineering development simulator, host computer system and interface with an Integrated System Test Certification Rig that is used to perform testing in a hardware-in-the-loop environment to support the following areas:

- Systems development;

- Systems validation and verification;

- Safety of flight;

- Certification.

CAE will complement the delivery of the CAE Augmented Engineering Environment with engineering design and support services throughout the development phase of the aircraft program.

"This agreement marks an innovative and significant step forward for CAE as we are applying more of our simulation and modelling expertise to support the design and development of an exciting new airliner like the CSeries aircraft, while continuing our strong history of delivering prototype simulators before an aircraft's first flight," said Jeff Roberts, CAE's Group President, Civil Simulation Products, Training and Services. "We are also developing a new suite of products and services as part of the CAE Augmented Engineering Environment that can be offered to any OEM to support new aircraft development in both the civil aviation and military market segments."

"This agreement illustrates the leadership and innovation originating within Canada's world-class aerospace industry," said James Hoblyn, President, Bombardier Customer Services & Specialized and Amphibious Aircraft. "CAE's modelling and simulation-based solutions will help us accelerate and enhance the efficiency of the CSeries aircraft development, all while reducing cycle time and overall costs associated with testing and validation."

Work on the project will begin immediately and the delivery of the engineering development simulator and CAE Augmented Engineering Environment to support Bombardier's CIASTA program is scheduled for 2011. The prototype CSeries FFS and CAE Simfinity training devices for initial pilot training will be ready-for-training (RFT) in 2013 to support the Bombardier CSeries' scheduled 2013 entry into service.

About the CSeries

At time of entry into service in 2013, the CSeries family of aircraft will be the greenest single-aisle aircraft in its class. These game-changing aircraft will emit 20(i) per cent less CO2 and 50(i) per cent less NOx, fly four(i) times quieter, and deliver dramatic energy savings - 20(i) per cent fuel-burn advantage as well as 15(i) per cent improved cash operating costs versus current in-production aircraft of similar size. The CSeries aircraft will set a new benchmark in the industry, consuming as little as two litres of fuel per passenger per 100 kilometres in its more dense seating layouts(i).

About CAE

CAE is a world leader in providing simulation and modelling technologies and integrated training solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1.6 billion, CAE employs approximately 6,500 people at more than 90 sites and training locations in 20 countries. We have the largest installed base of civil and military full-flight simulators and training devices. Through our global network of 29 civil aviation and military training centres, we train more than 75,000 crewmembers yearly. We also offer modelling and simulation software to various market segments and, through CAE's professional services division, we assist customers with a wide range of simulation-based needs.

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(i)Bombardier and CSeries are trademarks of Bombardier Inc. or its subsidiaries.

(i)The CSeries aircraft is in the design phase. All data and specifications are estimates, subject to change in family strategy, branding, capacity, performance during the course of the design, manufacture and certification process. Performance has been estimated based on a 500-nm North American operating environment.

Contacts: CAE contacts: CAE Nathalie Bourque Vice President, Public Affairs and Global Communications 1-514-734-5788 nathalie.bourque@cae.com Trade media: CAE Chris Stellwag Director, Marketing Communications, Civil and Military 1-813-887-1242, Cell: 1-407-709-3070 chris.stellwag@cae.com Investor relations: CAE Andrew Arnovitz Vice President, Investor Relations and Strategy 1-514-734-5760 andrew.arnovitz@cae.com