Press Release

Issued by CAE Inc..

January 19, 2017

CAE announced today a series of aviation training contracts valued at more than C$250 million with airlines and business aircraft operators worldwide. The contracts include cadet-to-captain training programs, crew resourcing services, and the sale of 12 full-flight simulators (FFS), bringing the total number of FFS sales announced to date this fiscal year to 38.

The contracts highlight the span of CAE's commercial and business aviation training solutions. They include:

Airline and business aviation pilot training contracts, demonstrating the recurring nature of CAE's offering

• Smart Aviation in the Middle-East: A business aviation pilot and maintenance training program

• Redstar Aviation in Europe: A business aviation training agreement for Learjet 45 pilot training

• Jet Airways in Asia: An exclusive five-year training contract for Boeing 737NG pilot training

• Undisclosed customers: An exclusive two-year training contract for Airbus A320/A330 pilot training with an airline in South America, and business aviation training agreements for various aircraft platforms to customers in Asia and North America

Ab-initio pilot training and resourcing agreements, illustrating CAE's support to the growing need for airline pilots

• Jetstar Airways Australia: New ab-initio pilot training contract, in partnership with Swinburne University of Technology

• Jetstar Airways Japan: A new five-year crew resourcing services agreement

The sale of 12 full-flight simulators, highlighting CAE's continued market leadership in training equipment

• Shanghai Eastern Flight Training Co. (SEFTC) in China: Five full-flight simulators, including two Boeing 737MAX, one Boeing 787, one Airbus A350, one Airbus A320NEO and four flight training devices to SEFTC, the training centre subsidiary of China Eastern Airlines

• Xiamen Airlines in China Three full-flight simulators, including two Boeing 737-800/8MAX and one Boeing 787-9 

• Korean Air in South Korea One Boeing 787 full-flight simulator 

• Sriwijaya Air in Indonesia One Boeing 737NG full-flight simulator 

• Southwest Airlines in the United States: One Boeing 737 full-flight simulator, as well as 14 CAE 550XR training devices 

• Undisclosed customer in North America: One Airbus A320 full-flight simulator.

Smart Aviation has selected Emirates-CAE Flight Training (ECFT), the joint venture between Emirates and CAE, for the provision of pilot and maintenance technician training on various aircraft types. They will be training at CAE's training centres in Dubai, UAE; Dallas, Texas; and Morristown, New Jersey, USA for the next 12 months.

Redstar Aviation has selected CAE for the provision of a new Learjet 45 training program. Pilots will be training at CAE's training centres in Burgess Hill, UK; and Dallas, Texas for the next three years.

"CAE places great importance on supporting the growing training needs of airline and aircraft operators around the world with cadet-to-captain training solutions," said Nick Leontidis, CAE's group president, Civil Aviation Training Solutions. "We are privileged to continue to be selected as their training partner of choice, building on our longstanding reputation for customer focus and ability to deliver quality training programs and equipment. We are committed to supporting their training needs long into the future."

The FFSs are at list prices, which include the value of OEM aircraft-specific data, parts and equipment (DP&E). In the case of these contracts, some customers are providing part of the OEM content.