CAE USA Wins USAF Contract to Upgrade C-5 Training Devices

(Tampa, Fla., August 31, 2010) -- (NYSE: CAE; TSX: CAE) - CAE USA today announced it has been awarded a contract from the United States Air Force (USAF) initially valued at more than US$10 million to upgrade two C-5 Galaxy weapon systems trainers (WSTs). The contract includes options to upgrade additional C-5 WSTs as well as C-5 cockpit procedures trainers that could bring the value to more than US$50 million.

As the prime contractor, CAE USA will have responsibility for upgrading the C-5 training devices to ensure concurrency with current aircraft upgrades being performed as part of the C-5 Avionics Modernization Program (AMP) as well as C-5 Reliability Enhancement Re-engining Program (RERP). Initially, CAE will upgrade a C-5 WST currently located at Stewart Air National Guard Base (ANGB) to the new C-5 AMP configuration. The other C-5 WST, located at Dover Air Force Base and already upgraded by CAE to the AMP configuration several years ago, will now be upgraded to the RERP configuration, which includes new engine performance simulation software as well as a new aerodynamics model simulating the improved engine performance.

"Following a highly competitive evaluation, we are pleased the U.S. Air Force recognized CAE's expertise and experience in selecting us to perform major upgrades to a range of C-5 training devices," said John Lenyo, President and General Manager, CAE USA. "As the prime contractor, we are committed to delivering these upgrades on-schedule with minimal disruption to current training requirements. By doing so, we will hopefully be well-positioned for future C-5 training device upgrades as well as training services."

Source : CAE