CAE places senior notes valued at approximately $120 million

  (NYSE: CGT)(TSX: CAE) - CAE announced today that it has issued senior notes for C$15 million and US$105 million by way of a private placement. The notes are issued to two institutional investors, which are note holders under the company's 1997 Note Purchase Agreement, for an average term of 8.5 years and a 7.15 per cent average blended interest rate.

Of the total proceeds, US$60 million will be used to pay maturing notes under the 1997 Note series, with the balance of proceeds to be used for general corporate purposes.

"We continue to be able to capitalize our company on the strength of our business model at an attractive cost," said Alain Raquepas, CAE's Vice President, Finance and Chief Financial Officer. "The notes will reinforce our cash position and provide us with additional flexibility."

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$1.6 billion, CAE employs approximately 6,000 people at more than 90 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

Contacts: Media contact: CAE Nathalie Bourque, Vice President Public Affairs and Global Communications 514-734-5788 [e-mail] Investor relations: CAE Andrew Arnovitz, Vice President Investor Relations and Strategy 514-734-5760 [e-mail]