Press Release

Issued by CAE Inc..

October 4, 2012

CAE announced today that it has been selected as one of the suppliers to support Bombardier Aerospace in the design, integration and development of the Global 7000 and Global 8000 aircraft program. The agreement with Bombardier includes the design and manufacture of an engineering development simulator. This agreement was included in a press release issued earlier today announcing the sale of simulators to various customers.

"We are pleased that Bombardier has selected CAE for the Global 7000 and Global 8000 aircraft development program," said Jeff Roberts, CAE's Group President, Civil Simulation Products, Training and Services. "This follows on the success thus far of the CAE Augmented Engineering Environment in the Bombardier CSeries* aircraft program."

"CAE's modeling and simulation-based solutions applied in the CSeries aircraft development program have helped reduce risk, and provide us with the confidence to further apply the CAE Augmented Engineering Environment to the new Global 7000 and Global 8000 aircraft development program," said Bassam Sabbagh, Vice-President and General Manager, Global 7000 and Global 8000 aircraft program, Bombardier Business Aircraft. "The ability to test and integrate various aircraft components in a virtual environment can help identify potential issues further ahead in the development."

Under the agreement with Bombardier, CAE will provide a comprehensive suite of products, engineering services and simulation-based technology tools to support the design, testing and certification of the Global 7000 and Global 8000 aircraft platform as part of Bombardier's Integrated Systems Test and Certification (ISTCR) program.

Bombardier's Global 7000 and Global 8000 aircraft program will use the CAE Augmented Engineering Environment, a modeling and simulation environment that allows original equipment manufacturers (OEMs) to evaluate, test, and validate a range of aircraft models and systems during the development phase. Bombardier is currently using the CAE AEE environment for its CSeries aircraft development program.

As part of the Global 7000 and Global 8000 aircraft program, CAE will deliver an engineering development simulator, host computer system and interface with ISTCR and High Lift System Test Rig (HLSTR) that is used to perform testing in a hardware-in-the-loop environment to support these areas:

* Systems development

* Systems validation and verification

* Safety of flight

* Certification

CAE will complement the delivery of the CAE Augmented Engineering Environment with engineering design and support services throughout the development phase of the aircraft program.

Work on the project will begin immediately and the delivery of the engineering development simulator and CAE Augmented Engineering Environment to support Bombardier's program is scheduled for entry-into-service in 2016.