CAE the Premier Supplier of Power-Plant Simulation Technology in the U.S.

Toronto, June 2, 2003 – (NYSE: CGT; TSX: CAE) – The Omaha Public Power District (OPPD) of Nebraska has selected CAE to refurbish the Fort Calhoun Simulator. With this contract, CAE becomes the premier supplier of power-plant simulation technology in the U.S. The contract is valued at more than C$9 million.

CAE will upgrade all parts of the existing simulator — except for the main control room operator panels and emergency response facility computer — and will supply a fixed “glass” simulator that has the same capabilities as a full-scope simulator. A fixed “glass” simulator does not have the control room panels found in conventional full-scope simulators. Instead, it uses large, rear-projection, touch screens with photo-realistic “virtual panels” as the prime operator interface. This simulator provides the customer with a second training platform and will allow OPPD to investigate prospective plant upgrades without performing any physical changes to either the simulator control room panels or the actual plant.

“With significant plant upgrades ahead of us, we decided that a single integrated simulator solution was necessary for the long term,” said W. Gary Gates, vice-president, OPPD. “CAE provides us with that solution.”

“We see a trend toward extending the useful life of nuclear plants to meet long-term generation targets,” said Derek H. Burney, president and chief executive officer, CAE. “In recent months, CAE has been selected for major upgrades to nuclear power-plant simulators. This project, with the recently announced Fermi 2 Simulator upgrade, solidifies our market position.”

The simulators’ reactor model will be generated using CAE’s advanced reactor model generation and update facility, Chorus™. The remaining models will be developed using ROSE®, CAE’s visual simulation environment. The “virtual panels” of the “glass” simulator will be developed using CAE’s graphics software, RAVE™.

As a project management first for CAE’s power systems and simulation group, CAE will establish a project virtual private network (VPN). From the Internet, the VPN will connect OPPD, their consultants and CAE’s sites, allowing for the immediate exchange of reports, questions, data and any other information required for the development and management of the simulator project.

OPPD is one of the largest publicly owned electric utilities in the United States, serving more than 300,000 customers in 13 southeast Nebraska counties. OPPD’s Fort Calhoun Simulator was originally put into service in 1990.

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.

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