Press Release

Issued by CAE Inc..

February 26, 2008

CAE today announced that its first CAE 5000 Series full-flight simulator (FFS), an A320 FFS located at CAE's Burgess Hill training centre in the United Kingdom, has achieved Level D certification, the highest qualification for flight simulators. The CAE 5000 Series A320 FFS was certified to Level D by the UK's Civil Aviation Authority (CAA).

The CAE 5000 Series FFS, designed and developed by CAE in consultation with customers and suppliers as a completely new "clean sheet" full-flight simulator, was delivered on time and on schedule.

"The 5000 Series simulator is a new design standard for CAE and represents a great step forward in simulator technology," said Chris Hope, Head of Crew Training, easyJet.  "We have been working closely with CAE on testing and evaluating the 5000 Series full-flight simulator prior to Level D qualification and can confirm the simulator flight characteristics deliver a high-quality representation of the A320 aircraft.  The new 5000 Series will serve as a great training tool as part of easyJet's pilot training program."

During its 60th anniversary celebration in March 2007, CAE announced the new CAE 5000 Series FFS to address the training requirements for high-volume commercial narrow-body aircraft such as the Boeing 737 and the Airbus A320, as well as emerging training requirements for Multi-Crew Pilot License (MPL) and Very Light Jet (VLJ) market segments.  The CAE 5000 Series FFS has been designed to meet the most stringent regulatory standards, including new flight simulation training device standards proposed by the Royal Aeronautical Society's International Working Group. The first 5000 Series FFS to achieve Level D certification will be used at CAE's Burgess Hill centre to provide A320 initial and recurrent training to European customers.

"This first CAE 5000 Series certification follows our concerted effort to work closely with our customers to develop a full-flight simulator product that combines the highest simulation fidelity while providing a significant increase in affordability and significant decrease in life cycle costs over more conventional, customized solutions," said Marc Parent, CAE's Group President, Simulation Products and Military Training & Services.  "We are pleased to receive this Level D certification because it once again confirms that CAE customers, including our own global network of training centres, will train on the highest quality and truest fidelity flight training equipment."

In addition to providing CAE 5000 Series FFSs to CAE's own global training network, recent announced orders from customers include:

• Lufthansa Flight Training – A320 FFS and Q400 FFS

• Ryanair – five B737 FFSs

• Embraer-CAE Training Services (ECTS) – two Phenom 100/300 FFSs

• Qantas – B737 FFS

• Emirates-CAE Flight Training (ECFT) – Hawker 800 XPi FFS