Toronto, Ocotber 9, 2002 (NYSE: CGT; TSX: CAE) – CAE, a world leader in the design of marine control systems and training solutions, today announced it has become an exclusive partner in the Thales CVF team’s bid to build two 50,000-ton aircraft carriers for the UK Royal Navy. The Thales CVF team is one of two competitors expecting a decision on their contract bid by the end of this year.

As part of the Thales CVF team, CAE’s mandate includes integration of the carriers’ platform management systems into ship data transport infrastructure. Platform management components will be supplied through open competition managed by CAE.

“I am delighted that CAE is able to play such a key role in this most innovative program,” said Rashid Khan, Executive Vice-President, Marine Controls, CAE. The company’s control systems and integration expertise have been selected for over 100 warships in 16 navies worldwide.

“CAE becoming a partner now in Thales’ CVF Team is further evidence of the impressive expertise that Thales has brought to bear on the program,” said Peter Robertson, Managing Director, Thales Naval U.K., “CAE’s impressive track record and system integration skills will strengthen our team’s proposal significantly.”

CAE is a global leader in providing advanced simulation and controls equipment and integrated training solutions for customers in the military, marine 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.

Thales Defence’s activities encompass optronics, air defence, sensors, communications, naval systems and avionics. The company is the UK’s second laregest defense contractor, having been a supplier to the UK MoD since World War I. Thales now draws together under one unifying brand name, businesses including Racal, Thomson Marconi Sonar, Shorts Missile Systems, Thorn, Avimo, and Pilkington Optronics. Employing 65,000 in almost 50 countries, Thales has 12,000 staff in the UK. In 2001, Thales global revenues were £6.8 billion.

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