CAE wins new business worth US$ 34 million from U.S. Navy
February 23 2005 - 8:01AM
PR Newswire (US)
CAE wins new business worth US$ 34 million from U.S. Navy TAMPA,
FLA., Feb. 23 /PRNewswire-FirstCall/ -- (NYSE: CGT; TSX: CAE) - CAE
USA has won a contract valued at more than US$12.5 million (C$15.5
million) to upgrade two P-3C flight simulators for the United
States Navy. Also, CAE USA will be developing an MH-60S tactical
operational flight trainer (TOFT) and two MH-60S weapons tactics
trainers (WTTs) for the U.S. Navy, valued at approximately US$22
million (C$27 million), bringing the total value of new business
recently awarded to CAE by the U.S. Navy to more than US$ 34
million (C$42 million). P-3C simulators For the P-3C flight
simulator contract, CAE will upgrade the motion, control loading,
and visual systems on the simulators. In addition, CAE will enhance
the aerodynamics software to provide improved flight handling
performance, bringing the simulators to a certification level
equivalent to the FAA's Level D. The enhanced aerodynamic software
for the USN P-3C simulators is based on the simulation software CAE
is currently developing for Canada's CP-140 flight deck simulator.
"In its effort to provide cost-wise readiness, the Navy needs to
upgrade its P-3C Orion simulators and decrease actual flight time,"
said Capt. Larry Howard, Commanding Officer of PMA-205 at Naval Air
Systems Command (NAVAIR) headquarters in Patuxent River, Maryland.
"Simulation plays a role in ensuring forces attain progressive
readiness goals to achieve surge status." The first upgraded USN
P-3C simulator will be ready for training at Naval Air Station
(NAS) Jacksonville in the fall of 2006. The next upgraded simulator
will be ready for training at NAS Whidbey Island in late 2006. This
contract includes options to upgrade four more P-3C simulators,
which CAE expects the Navy to exercise in 2006 and 2007. If all
options are exercised, the contract will involve CAE's upgrading a
total of six P-3C simulators for a total value of approximately
US$23 million (C$29 million). MH-60S TOFTs and WTTs On June 16,
2004, CAE announced that the United States Navy had awarded it a
contract initially valued at US$38 million (C$52 million) to
develop two MH-60S tactical operational flight trainers and two
MH-60S weapons tactics trainers. The contract included options for
more simulators of these types. Recently, the Navy exercised
several of those contract options, for a value of US$22 million
(C$27 million). As a result, CAE USA will develop one additional
MH-60S TOFT and two additional MH-60S WTTs. The Navy has awarded
these contract options ahead of the planned schedule. "CAE is an
experienced provider of Level-D simulators and was able to offer
the Navy a low-risk upgrade program that leverages work we've done
on previous P-3 simulation programs, including the Canadian CP-140
simulator soon to be delivered", said John Lenyo, President and
General Manager, CAE USA. "We are focused on execution for both the
MH-60S and P-3 programs and expect our performance to position us
well for future U.S. Navy opportunities." NAVAIR provides advanced
warfare technology through the efforts of a seamless, integrated,
worldwide network of aviation technology experts. From professional
training to carrier launch; from sensor data to precision
targeting; from aircraft and weapons development to successful
deployment; from real-time communication to aircraft recovery
NAVAIR provides dominant combat effects and matchless capabilities
to the American warfighter. CAE is a leading provider of simulation
and modeling technologies as well as integrated training services
for commercial and business aviation, and defense customers
worldwide. The company has annual revenues of approximately C$1
billion, with operations and training facilities in 17 countries on
five continents. DATASOURCE: CAE INC. CONTACT: CAE contacts:
Nathalie Bourque, Vice President, Corporate Communications, (514)
734-5788, ; Defence/trade media: Chris Stellwag, Director,
Marketing Communications, MS&T, (813) 887-1242, ; Investor
relations: Andrew Arnovitz, Director, Investor Relations, (514)
734-5760, ; On the Web: http://www.cae.com/
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