CAE Selected by Canadian Navy for Control Systems and Upgrade Study for Patrol Frigates

Toronto, November 5, 2002 – (NYSE: CGT; TSX: CAE) CAE today announced it has been selected to provide display replacements and perform a supportability study for the CAE-developed Integrated Machinery Control System (IMCS) aboard the Canadian Navy’s Halifax class Canadian Patrol Frigates. The value of the contract is approximately C$4 million.

In addition to replacing IMCS console displays with state-of-the-art, high-resolution flat panels, CAE will be conducting a supportability study to analyze future IMCS support and upgrade requirements for the 12 Halifax class frigates. Supportability studies are integral to the Navy’s equipment life-cycle management, determining when, where and how equipment is maintained, repaired or upgraded over its useful life.

The IMCS monitors and controls shipboard machinery systems, including gas turbines, cruise diesel engines, electrical generators, gearbox and auxiliary systems. Also included are advanced functions such as on-board training and equipment health monitoring.

‘We are pleased the Canadian Navy continues to recognize CAE as a premier supplier of naval control systems expertise worldwide, and considers us a valuable partner for the Canadian Navy Halifax Class Frigate Program,’ said Rashid Khan, Executive Vice-President, Marine Controls, CAE.

The contract covers all 12 of the fleet’s vessels based in Esquimalt, British Columbia, and Halifax, Nova Scotia, as well as the Navy’s IMCS Trainer located at the Canadian Forces Naval Engineering School in Halifax.

CAE pioneered the naval use of integrated distributed-architecture control systems and revolutionized the industry with its IMCS for the Canadian Patrol Frigates in the 1980s. Since joining the Canadian fleet, Halifax class ships have been used in a wide variety of operations as part of the Navy’s Pacific and Atlantic naval fleets, as well as numerous international missions enforcing United Nations Security Council resolutions in the Persian Gulf.

CAE is a global leader in providing advanced simulation and controls equipment and integrated training solutions for customers in the marine, military and civil aviation markets. With annual revenues in excess of $1 billion, CAE employs more than 6,000 people in Canada, the United States and around the globe.

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