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Fri, Jan 23, 2004

CAE and Flight Options Sign Major Training Agreement

Three-year Contract Valued At US$28 million

F light Options, LLC will soon begin training all of the company's pilots at CAE SimuFlite's Dallas- Fort Worth center thanks to an agreement announced on Tuesday. The exclusive three-year agreement, with an option for two more years, is the single largest ever for CAE SimuFlite.

"The utilization of CAE SimuFlite's services is one of the ways in which Flight Options ensures its pilots receive the best training," said John Nahill, chairman and chief executive officer of Flight Options, LLC.

CAE's global network of training centers-which in two years has expanded to more than 100 full-flight simulators from 60-offers aviation training for business, commercial, regional and helicopter operators, and the network continues to develop. CAE SimuFlite is the world's largest business aviation training facility and the flagship business-aviation training center in CAE's global training network.

"We always had a great relationship with Flight Options and believe that CAE SimuFlite's customer-centricity, quality and industry-leading training technologies and solutions contributed to their decision to choose us as their exclusive training provider," said Jeff Roberts, CAE's executive vice- president of aviation training for civil simulation and training.

The three-year deal, which becomes fully effective in February, is valued at approximately US$28 million (C$35 million). If exercised, the additional two-year contract option could bring the value to US$48 million (C$61 million) over five years.

Based in Cleveland, Ohio, Flight Options, LLC is the world's fastest growing fractional provider and employs over 1300 professionals nationwide. Flight Options offers fractional shares and leases in its fleet of over 200 aircraft, which includes the world's largest fleets of King Air's, Beechjet 400A's and Hawker 800's. The fleet also includes the CitationJet, Hawker 400XP, Citation V, Citation 650, Falcon 50, Citation X, Challenger 601, Gulfstream IV and the Legacy.

CAE is a leading provider of integrated training solutions and advanced simulation and controls technologies to civil aviation, military and marine customers. The company generates annual revenues in excess of C$1 billion and employs about 6,000 people in Canada, the United States and around the globe.

FMI: www.cae.com

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