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Minister Clement announces repayable investment in flight simulators

April 2, 2009 – Tony Clement, Minister of Industry, has announced a repayable investment in the development of innovative modelling and simulation technologies in aerospace and defence by CAE Inc.


Tony Clement, Minister of Industry, has announced a
repayable investment in the development of innovative modelling and
simulation technologies in aerospace and defence by CAE Inc. CAE's
$714-million project, named "Falcon," will expand the company's
technological capabilities by allowing it to develop new simulation
tools and products for the civil aviation and defence markets. The
project will help CAE to maintain its leadership position in
full-flight simulation by increasing innovation and enhancing its
competitiveness.

The Government of Canada is making a repayable investment of $250
million in the project, which will allow CAE to improve its existing
modelling and simulation technologies to develop simulators for a wider
range of aircraft.

"This repayable investment in CAE demonstrates our government's
commitment to Canadian research, development and innovation in our
aerospace and defence industries," said Minister Clement. "The use of
virtual simulation technology increases safety for pilots in training.
It also reduces air pollution and conserves fuel, protecting our
environment."

"CAE has set the standards in modelling and simulation for the past
sixty years, and its leadership is recognized by airlines, aircraft
manufacturers and defence forces around the world," said Robert E.
Brown, President and CEO of CAE. "Innovation is essential for CAE to
sustain its leadership position in modelling and simulation. This
investment from the Government of Canada will allow CAE to expand its
range of products and work to meet the future needs of our
international client base."

This investment is being made through the Strategic Aerospace and
Defence Initiative (SADI), which supports strategic industrial research
and pre-competitive development projects in the aerospace, defence,
space and security industries. SADI is managed by the Industrial
Technologies Office, a special operating agency of Industry Canada with
a mandate to advance leading-edge research and development by Canadian
industries.

BACKGROUNDER

Minister Clement Announces $250-Million Repayable Investment in Aerospace and Defence Project

The Government of Canada is investing $250 million over six years in
the development of innovative aircraft simulator systems. CAE Inc.,
based in the Saint-Laurent district of Montreal, Quebec, will undertake
a $714-million research and development project in modelling and
simulation.

Flight simulators reduce the need for actual training flights, thereby
increasing safety, lowering pilot/crew training costs and reducing
environmental impacts. In addition to allowing CAE to invest further in
its traditional training markets, this project will enable the company
to address new markets such as new types of aircraft, unmanned vehicles
and replacement models for current aircraft.

A world leader in simulation and training equipment technologies, CAE
uses a collaborative model of technological development that benefits
universities. For example, CAE supports Carleton University's Centre
for Advanced Studies in Visualization, Simulation and Modelling;
employs interns from universities, including Concordia University,
McGill University, Universite de Montreal and Universite du Quebec a
Montreal; and contributes annually to scholarship programs.

CAE has sites and training locations in 20 countries, has clients in
more than 100 countries, and serves approximately 3500 airlines,
aircraft operators and manufacturers around the world.

The Strategic Aerospace and Defence Initiative (SADI), launched in
April 2007, supports private sector industrial research and
pre-competitive development in Canada's aerospace, defence, security
and space industries through repayable investments. For more
information about SADI, please visit the Industrial Technologies Office
website at ito.ic.gc.ca.


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