CAE becomes Bombardier’s Authorized Training Provider for Global family and Challenger 300 aircraft

Paris, June 20, 2007

CAE and Bombardier Aerospace signed today a 20-year agreement under which CAE will become Bombardier’s Authorized Training Provider for the Bombardier Global Express aircraft, Global 5000 aircraft, Global Express XRS aircraft and for the Bombardier Challenger 300 aircraft. The two aerospace leaders will collaborate to provide state-of-the-art training programs for pilots and maintenance crew that will include Bombardier’s Original Equipment Manufacturer (OEM) courseware and will incorporate the latest simulation-based training methodologies, such as CAE Simfinity® tools. These programs will be delivered by both CAE and Bombardier to customers worldwide.

CAE will purchase a Bombardier-owned Global Express aircraft full-flight simulator (FFS) currently installed in Montreal. CAE will deploy this FFS and deliver the training program for the aircraft in its United Kingdom training centre at Burgess Hill, near London. CAE will also build a new Challenger 300 aircraft FFS and deploy it to a location to be confirmed at a later date. Bombardier will continue to operate one Challenger 300 aircraft FFS in Dallas, Texas and a Global Express aircraft FFS in Montreal, Canada. The two companies will work together to provide standardized training for aircraft operators worldwide.

“This decision is excellent news for our operators,” said Gary Scott, President, Bombardier Aircraft Services and New Commercial Aircraft Program. “High quality training will be available from both CAE and Bombardier with a much broader geographic footprint, giving the customer a complete choice of where to train.”

According to Jeff Roberts, CAE’s Group President, Innovation and Civil Training & Services, “Our goal is to move our training closer to our markets. With more and more Bombardier aircraft operating outside North America, offering training in Europe just makes sense. As we go forward, CAE will increase the number of training assets deployed in line with aircraft deliveries.”

Under this agreement, CAE will deliver full training for both pilots and maintenance crew – a key move for CAE in growing the maintenance business that completes its total training delivery capability.

About Bombardier (TSX: BBD);
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2007, were $14.8 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.

About CAE (NYSE: CGT; TSX: CAE)
CAE is a world leader in providing simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe. We design, manufacture and supply simulation equipment and offer training and services. This includes integrated modelling, simulation and training solutions for commercial airlines, business aircraft operators, aircraft manufacturers and military organizations and a global network of training centres for pilots, and in some instances, cabin crew and maintenance workers.

With annual revenues of over C$1 billion, CAE operates in 19 countries around the world. CAE has sold nearly 700 simulators and training devices to airlines, aircraft manufacturers, training centres and defence forces for air and ground purposes in more than 40 countries. We have over 110 full-flight simulators in more than 20 aviation training centres, serving approximately 3,500 airlines, aircraft operators and manufacturers across the globe. CAE licenses its simulation software to various market segments and has a professional services division assisting customers with a wide range of simulation-based needs.
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Bombardier, Global Express, Global 5000, Global Express XRS and Challenger 300 are trademarks of Bombardier Inc. or its subsidiaries.

On the Web: aero.bombardier.com

Bombardier Aerospace contact:
Marc Duchesne,
Senior Advisor, Public Relations and Communications
Bombardier Aerospace
(514) 855-7989 mobile: (514) 465-7834
Marc.duchesne@aero.bombardier.com

On the Web: cae.com

CAE contacts:
Nathalie Bourque,
Vice President, Global Communications,
(514) 734-5788, mobile : (514) 887-5599
nathalie.bourque@cae.com

Trade media:
Linda Tardif,
Director, Marketing, Innovation and Civil Training & Services,
(514) 531- 2130
linda.tardif@cae.com

Investor relations:
Andrew Arnovitz,
Vice President, Investor Relations and Strategy,
(514) 734-5760,
andrew.arnovitz@cae.com

The first type rating class for the Challenger 605 successfully completed their training in May 2007. More details on the Challenger 605 Type Rating course can be found in our course catalog.