Montreal, June 9, 2004 – (NYSE: CGT; TSX: CAE) – CAE’s Leesburg, Virginia-based Marine Systems division has been selected to provide an automated ship control system for the US Navy’s Littoral Combat Ship (LCS) program.

The C$4.9 million (US$3.6 million) contract was awarded by General Dynamics Advanced Information System, a business unit of General Dynamics (NYSE:GD). General Dynamics Bath Iron Works is the program’s prime contractor. A contract option could bring an additional C$3.0 million (US$2.2 million).

“CAE Marine Systems will provide the ship’s automated control systems and seamlessly integrate them with the combat system,” said Joe Lee Frank, president, CAE USA Marine Systems.

The US Navy’s LCS is a small, fast-attack warship designed to operate in the littorals, or shallow water areas near shores. It is a modular ship that uses a variety of mission packages to engage in anti-submarine warfare, marine patrol, mine detection and clearance. A requirement of the LCS is that it connects with other ships, unmanned vehicles and off-board sensors, rendering it equipped for network-centric military operations. The navy ultimately contemplates a fleet of 30–60 LCSs.

CAE is now participating in all four of the US Navy’s major surface combat vessel programs, including the DD(X) destroyer, the LPD-17 amphibious assault ships and the CVN-77 aircraft carrier.

“CAE is also actively engaged in considerable pioneering work in the field of open architecture systems, which integrate all electronic operations into a common computing environment,” added Frank. “That we are called upon to do such critical work on these programs is a testament of CAE’s leading-edge technical expertise.”

More than 18 navies worldwide use CAE’s advanced automation technology aboard 140 warships.

CAE is a leading provider of simulation technologies and integrated training services to airlines, aircraft manufacturers, defence forces, and marine customers worldwide. The company has annual revenues in excess of C$1 billion, with manufacturing operations and training facilities in 19 countries on five continents.