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CAE Wins Korean Navy Contract

Maritime Activity Reports, Inc.

April 1, 2004

CAE has been selected to supply shipboard control systems for the fifth in a series of KDX-II class destroyers for the Republic of Korea Navy (ROKN). List price for similar repeat business is approximately $C6 million. The complete system will be delivered in 2005.

This contract, awarded by prime contractor Daewoo Shipbuilding and Marine Engineering Co. Ltd. (DSME), marks the tenth selection of CAE's integrated platform management system (IPMS) for the ROKN. Since 2000, DSME and CAE have collaborated on two other KDX-II vessels.

"The DSME shipyard and the ROKN are longstanding customers, and this contract certainly reinforces CAE's position as a key supplier," said Rashid Khan, CAE's executive vice-president for marine control systems. "The Korean navy's continued confidence in CAE's systems has played a key role in building our reputation among the world's largest naval forces."

The CAE IPMS is the world's first and leading digital control system for naval ships. The system monitors and controls all of the ship's platform machinery, such as propulsion, electrical distribution, auxiliaries, steering, and damage control. The IPMS also provides advanced automation for enhanced operational effectiveness and survivability. More than 18 navies worldwide use CAE's advanced automation technology aboard their 130 warships.