Montreal, December 8, 2004 – (NYSE: CGT; TSX: CAE) – CAE has been selected to develop automated software tools for the emulation of distributed control systems (DCS) for Florida Power & Light (FPL) Company’s St. Lucie and Turkey Point plant simulators. FPL acceptance of the software tools is slated for early 2006.

As part of FPL’s move to upgrade the two power plants with DCS equipment from Invensys and Westinghouse, the project involves the development of automated translators that make use of actual plant control configuration files to automatically generate simulator-ready control system simulation files, thereby ensuring proper replication of all control functions. CAE will also be using its Datapath® X product as a basis to develop emulations of the various human-machine interfaces to be installed as part of the plant DCS upgrades.

DCS upgrades and their implementation into training simulators are part of an emerging trend in nuclear power plant improvements resulting from operating license extensions and the associated need to modernize plants for their longer operating lives.

“It is crucial that operations personnel be trained on simulators that realistically reflect plant changes before new equipment is placed into service at power plants,” said Rashid Khan, CAE’s executive vice president, marine and power systems. “CAE continues to offer flexible, cost-effective solutions for such modernization projects and we are pleased that FPL, our long-time, valued customer, has once again entrusted us with its simulation needs,” he added.