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2 October 2003

CAE Wins C$16M Contract for Control Systems to Indian Navy

Toronto, October 2, 2003 – (NYSE: CGT; TSX: CAE) – CAE has won a C$16-million contract to supply the Indian navy with integration and control systems for three of the navy’s new landing ships.

CAE will supply prime contractor Garden Reach Shipbuilders and Engineers with advanced computer-based integrated platform management system (IPMS) technology that will provide propulsion and damage control for the navy’s landing ships.

“CAE’s IPMS is being used by 18 navies worldwide, and it is a system that complements the Indian navy’s impressive efforts towards enhancing its fleet,” said Rashid Khan, CAE’s executive vice-president of marine controls.

For a second time, CAE will also provide the navy with systems integration support services and platform system sensors. The work will be carried out jointly by CAE’s staff in Montreal, Canada, and Bangalore, India, and is expected to be completed by mid-2006.

In October 2001, CAE signed a C$45-million contract with the Indian navy for system integration support and control systems for its Project 17 Frigates program, which is well underway.

CAE is a leading provider of integrated training solutions and advanced simulation and controls technologies to marine, civil aviation and military customers. The company generates annual revenues in excess of C$1 billion and employs more than 6,000 people in Canada, the United States and around the globe.

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