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CAE (TSX: CAE) (NYSE: CGT) has signed contracts and alliances in simulation-based healthcare training. They are with the Michener Institute for Applied Health Sciences in Toronto, the Universite de Montreal and the Winnipeg Regional Health Authority. The contracts have an initial total value of approximately C$5 million.

"The aviation simulation-based training model is becoming universally recognized as one of the effective ways to prepare healthcare professionals to care for patients and respond to critical situations while reducing the overall risk to patients," said Robert E. Brown, President and Chief Executive Officer of CAE. "CAE has already applied its technology and capabilities developed for the civil aviation and military markets to public safety and emergency response. Healthcare simulation is a natural extension of this know-how. By partnering with experts in the healthcare field, we will leverage our knowledge, experience and best practices in simulation-based aviation training to work with healthcare experts to deliver innovative education, technologies and service solutions in order to improve the safety and efficiency of the healthcare industry."

CAE estimates the global market for simulation-based healthcare training will be in excess of $1.5 billion by 2012(i). CAE's healthcare services will range from providing simulation-based training solutions to managing simulation-based training centres.

Michener Institute for Applied Health Sciences

CAE signed a contract with the Michener Institute for Applied Health Sciences to collaborate on establishing a healthcare simulation training centre. The new centre will be located in the Michener Institute's facility in Toronto, Canada, and will be named the CAE-Michener Centre for the Advancement of Simulation in Healthcare. When fully operational, the centre is expected to train more than 1,500 students and healthcare practitioners per year.

"Our alliance with CAE will build upon our respective strengths to offer leading-edge and cost-effective professional development to healthcare practitioners," said Dr. Paul Gamble, President and CEO, Michener Institute for Applied Health Sciences. "The CAE-Michener alliance will bring simulation excellence from the aviation industry to healthcare and create simulation-based education programs that will graduate a wide variety of qualified healthcare professionals. Our alliance will be one of the first in North America to specialize in providing inter-professional simulation education for integrated healthcare teams, including health professionals."

Under the terms of the agreement, CAE will have responsibility of managing the training centre operations and will develop simulation-based courseware for the new centre. In addition, CAE will market excess training capacity of the Michener Institute facility to third parties. Michener will contribute inter-professional and healthcare expertise.

Universite de Montreal

Universite de Montreal and CAE have signed a collaboration agreement to co-develop courses for the University's new state-of-the-art simulation-based training centre located in Montreal, Canada. Universite de Montreal and CAE will develop simulation-based Crisis Resource Management (CRM) team training, designed to improve inter-professional team work. Under this agreement, CAE will also offer training to third parties. Universite de Montreal's new simulation centre will be operational this summer and will train medical students and practicing healthcare professionals.

"We are proud to be one of the first to use CAE's extensive knowledge in simulation-based training to create, together, courses that will radically change the way healthcare practitioners are trained today," said Dr. Jean Lucien Rouleau, Dean, Faculty of Medicine, Universite de Montreal and President of the Reseau Universitaire Integre de Sante (RUIS). "We look forward to continuing to collaborate with CAE for other training solutions."

Winnipeg Regional Health Authority

CAE also signed a contract with the Winnipeg Regional Health Authority (WRHA) to deliver simulation-based courseware solutions that will be used to improve key life saving procedures within the WRHA region, including how cardiac arrest is handled in hospitals as well as new safety procedures for paediatric transport.

"By partnering with CAE our goal is to continuously measure and improve the quality of care we offer our patients," said Dr. Brian Postl, CEO of WRHA. "The healthcare field is looking at best practices from the field of aviation where simulation has been a critical element of its safety record. By collaborating with the world leader in simulation-based training, Winnipeg Regional Health Authority's goal is to remain at the forefront of how our healthcare professionals are trained."

About CAE

CAE is a world leader in providing simulation and modelling technologies and integrated training solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1.4 billion, CAE employs approximately 7,000 people at more than 75 sites and training locations in 20 countries. We have the largest installed base of civil and military full-flight simulators and training devices. Through our global network of 27 civil aviation and military training centres, we train more than 75,000 crewmembers yearly. We also offer modelling and simulation software to various market segments and, through CAE's professional services division, we assist customers with a wide range of simulation-based needs. www.cae.com

(i) Source: Mercer Management Consulting, 2006, Bristol Medical Simulation Centre World Simulation Centre Database, 2008 and Society for Simulation in Healthcare Sim Center Database, 2008.

Contacts: CAE contacts: Nathalie Bourque, Vice President Public Affairs and Global Communications 514-734-5788 nathalie.bourque@cae.com Investor relations: Andrew Arnovitz, Vice President Investor Relations and Strategy 514-734-5760 andrew.arnovitz@cae.com