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CAE USA Marine Systems Achieves Milestone for Software Compliance

Toronto, July 9, 2002 (TSX:CAE) – CAE today announced that its Marine Systems operation based in Leesburg, Virginia—CAE USA Marine Systems—has achieved a milestone for software compliance at the highest level of industry standards, the Capability Maturity Model (CMM) Level Three certification.

CMM is a model for judging the maturity of the software processes of an organization and for identifying the key practices that are required to increase the maturity of these processes. The Software Engineering Institute developed the CMM, in conjunction with the United States government, to help organizations improve their long-term business performance.

The CMM assessment was conducted by The Process Company of Springfield, Virginia. According to The Process Company, more than 1,500 companies have been assessed since 1987 and only 23.4 percent achieved CMM Level Three status.

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

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