Toronto, March 5, 2003 – (NYSE: CGT; TSX: CAE) CAE, a world leader in the design and integration of marine control systems and training solutions, today announced that it has been selected by the ARGE K130 consortium to provide Integrated Monitoring and Control Systems (IMCS) for the German Navy’s new K130 Corvettes. The approximate value of the contract is C$23 million.

CAE’s IMCS is a comprehensive warship platform automation system in use by 16 navies around the world, and on over 100 warships, including submarines. It provides integrated monitoring and control of all of the ship’s platform machinery and systems such as propulsion, steering, electrical generation and distribution, auxiliaries, fire/smoke/flood detection and damage control.

‘CAE is delighted to have been chosen for this key program. It follows our successful implementation of one of the world’s most advanced automation systems on the German Navy’s F-124 Frigates, the first of which was delivered on schedule last year’, said Rashid Khan, Executive Vice-President, Marine Controls.

The ARGE K130 Consortium which comprises three German shipyards: Blohm+Voss, Fr. Lürssen Werft, and Thyssen Nordseewerke, was contracted by the Federal German Office for Defence Technology and Procurement (BWB) to supply the first batch of five corvettes in a planned total of 15 ships.

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.