(Tampa, Fla., August 30, 2006) — (NYSE: CGT; TSX: CAE) - CAE has been awarded an initial subcontract valued at more than US$22 million (C$25 million) by the Boeing Company to begin the design and development of upgrades and new training devices for the U.S. Air Force C-130 Avionics Modernization Program (AMP). The subcontract from Boeing calls for CAE to upgrade an existing C-130H Weapon Systems Trainer located at Pope Air Force Base (AFB) and deliver the upgraded simulator in a C-130 AMP configuration to Little Rock AFB in early 2009. CAE will also upgrade an existing C-130 Cockpit Familiarization Trainer, Cockpit Procedures Trainer, and Fuselage Trainer to the C-130 AMP configuration, as well as design and manufacture a new C-130 AMP Avionics Part Task Trainer. CAE will work closely with Boeing, the C-130 AMP prime contractor, and Lockheed Martin, the C-130 Aircrew Training System prime contractor, to install and test all C-130 training system modifications.
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