CAE Inc. wins trainer contracts worth $75M from British and U.S. military: Knowledge Driven Revolution

MONTREAL (CP) - CAE Inc. (TSX:CAE) announced two big contracts Wednesday: a $50-million deal to upgrade the British Royal Navy's Merlin helicopter training systems and a $25-million order to build a flight simulator for the U.S. navy.

Lockheed Martin UK will pay Montreal-based CAE for upgrades on the Royal Navy's EH101 Merlin training system, which was built by CAE. The system is used to train flight crews in operations such as ship deck landing and cockpit familiarization.

Subsidiary CAE USA has been awarded a contract valued at more than $25 million by prime contractor Link Simulation and Training to design and make an operational flight trainer for the E-6B aircraft used by the U.S. navy for strategic communications and airborne command post missions.

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CAE said Wednesday it will deliver the flight simulator to Link's training facility near Tinker Air Force Base, Oklahoma, in the summer of 2008. The contract also includes an option for CAE to upgrade the visual systems on two simulators operated by Link as the prime contractor on the E-6B aircrew training system program.

The E-6B flight simulator will be used to train navy pilots, co-pilots and flight engineers for a range of normal and emergency aircraft procedures.

With annual revenue over $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.

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