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CAE wins military deals worth more than $100 million

Feb. 5, 2013, Montreal – CAE recently announced it has won more than $100 million in military contracts for the defence forces of 15 countries. The deals include a contract from Elbit Systems to provide M-346 training devices for the Israeli Air Force, contracts from the U.K.


February 5, 2013
By Carey Fredericks

Feb. 5, 2013, Montreal – CAE recently announced it has won more than
$100 million in military contracts for the defence forces of 15
countries. The deals include a contract from Elbit Systems to provide
M-346 training devices for the Israeli Air Force, contracts from the
U.K. Ministry of Defence to support CAE's Medium Support Helicopter
Aircrew Training Facility (MSHATF), and a contract to provide
maintenance and support services for the NATO E-3A training devices.

The majority of these contracts were awarded during CAE's fiscal year
2013 third quarter and partially at the start of its current fourth
quarter.

"We are pleased to partner with Elbit Systems and Alenia Aermacchi to
add the Israeli Air Force to the growing list of M-346 customers
globally who will train their next-generation pilots using CAE's
world-class simulation technology," said Gene Colabatistto, Group
President, Military Products, Training and Services, CAE. "The cost
benefits of simulation-based training are becoming increasingly relevant
for defence forces and we continue to focus on a large pipeline of
opportunities in both the emerging and established markets."

Elbit Systems/Israeli Air Force

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CAE was awarded a contract from Elbit Systems to design and manufacture
segments of a suite of Alenia Aermacchi M-346 simulators to support the
Israeli Air Force (IAF) future trainer aircraft program. Under terms of
the contract with Elbit Systems, CAE USA will provide segments of the
M-346 full-mission simulators and the operational flight simulators. The
simulators will be delivered to Israel and ready for training in the
second half of 2014.

Elbit Systems has the responsibility for the M-346 ground-based training
system (GBTS) and will integrate the M-346 simulators into the overall
M-346 GBTS in support of preparing the IAF's pilots for operating
next-generation combat aircraft. The M-346 GBTS is developed within an
industrial team composed by Elbit Systems, Alenia Aermacchi, CAE and
Selex Galileo.

U.K. Ministry of Defence

The United Kingdom Ministry of Defence (MoD) has recently awarded CAE
two contracts for simulator upgrades and training services at CAE's
Medium Support Helicopter Aircrew Training Facility (MSHATF).

A contract to provide both ground school and simulator aircrew training
services at MSHATF for the Royal Air Force (RAF) on the Puma HC2
helicopter has been extended through 2017. CAE is currently upgrading
the Puma dynamic mission simulator at MSHATF to the new Puma HC2
configuration. The upgraded Puma simulator is expected to be
ready-for-training during the summer of 2013.

In addition, CAE will perform a major upgrade to one of the CH-47
Chinook dynamic mission simulators to ensure concurrency with the RAF
CH-47 Mk4 standard, which is also known as the JULIUS program. CAE had
previously upgraded one of the other CH-47 Chinook simulators at MSHATF
to the Mk4 configuration.

CAE's MSHATF, owned and operated by CAE Aircrew Training Services, is a
purpose-built facility that provides training to the RAF and third-party
operators of Boeing CH-47 Chinook, AgustaWestland AW101 Merlin, and
Eurocopter Puma helicopters. The MSHATF is equipped with six CAE-built
dynamic mission simulators (three Chinook, two Merlin, and one Puma),
four computer-based ground school training classrooms, and a
state-of-the-art tactical control centre.

NATO E-3A Maintenance Services

CAE was also awarded a contract to continue providing a range of
maintenance and support services for the NATO E-3A training devices
located at NATO Airbase Geilenkirchen in Germany. Under terms of the
three-year frame contract, NATO will order from CAE maintenance services
for the CAE-built E-3A flight deck simulator as well as the recently
delivered CAE-built E-3A flight training device. The NATO E-3A flight
deck simulator has been in operation for more than 30 years and has
provided more than 100,000 hours of training to NATO E-3A Airborne
Warning and Control System (AWACS) aircrews.


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