CAE gets C$13 million Beznau nuclear power-plant simulator contract

Montreal, April 26, 2004 – (NYSE: CGT; TSX: CAE) – CAE is to develop a full-scale power-plant simulator for Switzerland’s Beznau plant, owned and operated by Nordostschweizerische Kraftwerke AG (NOK).

The order, valued at approximately C$13 million, is the biggest win for CAE’s power systems and simulation group in fiscal year 2004. Completion of the simulator is slated for the end of 2006.

The simulator will service two Westinghouse pressurized water reactor units at the Beznau site in northeastern Switzerland. The identical Beznau 1 and 2 units, each with a rated net output of 365 MWe, have been supplying reliable, safe and clean energy to nine cantons since 1969 and 1971, respectively.

“After an intensive review of several simulator suppliers, it was clear that CAE was best suited to work with our team as we take on building the simulator for Beznau, “said Roland Käser, project manager, NOK. “CAE’s commitment to success and long-term outlook in the power-plant simulation business are unrivalled.”

The majority of the simulator’s models will be developed, validated and maintained in CAE’s ROSE® simulation environment. The simulator will be equipped with full replica control room panels and CAE’s IsisTM―a feature-rich, user-friendly instructor station. Various plant computer systems will also be included in the simulator’s scope of supply. To make it happen, in addition to close teamwork with NOK, CAE anticipates cooperation with several international suppliers, including Framatome ANP, Mauell AG, and Westinghouse Electric Co.

“The fact that CAE holds the largest market share in the global power-plant simulation business is no accident; it is the direct result of CAE’s investment in the product line and the team’s commitment and enthusiasm towards being the world leader in this business,” said CAE’s Rashid Khan, executive vice president, marine and power systems.

NOK is a joint stock company with a share capital of 360 million Swiss francs, which is entirely held by Axpo Holding AG. With a balance sum of six billion Swiss francs and 1,200 employees, NOK belongs to the most important utilities in Switzerland.

CAE is a leading provider of simulation technologies and integrated training services to airlines, aircraft manufacturers, defence forces, and marine customers worldwide. The company has annual revenues in excess of C$1 billion, with manufacturing operations and training facilities in 18 countries on four continents.

– 30 –

More About This Company