Toronto, June 23, 2003 – (NYSE: CGT; TSX: CAE) – CAE will work with first-time customer, KSU, to develop simulation models for a new full-scope nuclear power-plant simulator for the Oskarshamn 2 plant owned by Swedish-based OKG Aktiebolag.

KSU, short for Kärnkraftsäkerhet och Utbildning, designed and operates all seven of Sweden’s nuclear power-plant simulators.

It has signed three contracts with CAE, valued at more than C$2 million, to collaborate on the Oskarshamn 2 simulator project. CAE will develop process and logic models for half of the simulator’s systems, using its ROSE® 4 simulation environment. KSU will develop the majority of the remaining models, using ROSE® 4, and will integrate all the parts of the simulator delivered by various suppliers. CAE will also supply a ROSE®-based emulation of the ABB Advant control system that is used for the plant’s turbine control.

“We have chosen to work with CAE on this project for two primary reasons,” said Rolf Gullberg, KSU’s president: “its advancing technologies, which have a solid foundation, and its 30 years of experience and reputation for quality in the power-plant simulation industry.”

“The Oskarshamn 2 project is an important one for CAE because it opens a new market for us. We’re confident of its success and look forward to future opportunities to work with KSU and its customers to enhance Sweden’s other nuclear power-plant simulators,” said Rashid Khan, CAE’s executive vice-president of marine and power systems.

OKG owns all three nuclear reactor units at the Oskarshamn nuclear power plant, which together, account for 10 percent of the total electricity generated in Sweden. All three units are 100 percent Swedish Boiling Water Reactor (BWR) designs from ABB Atom.

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