CAE shareholders approve move of head office to Montreal MONTREAL, June 22 /PRNewswire-FirstCall/ -- (NYSE: CGT; TSX: CAE) - Shareholders of CAE Inc. have approved the transfer of CAE's head office to Montreal from Toronto. "We have brought CAE back to its birthplace," said Robert E. Brown, CAE's President and Chief Executive Officer, at the company's annual and special meeting of shareholders. "Montreal is the centre of Canada's aerospace industry, and it was here that CAE was founded in 1947. It is appropriate that the company headquarters be located here." Mr. Brown noted that CAE directly employs more than 2,800 people in the Montreal area and also generates significant economic spin-offs, injecting $70 million a year into the economies of Montreal and Quebec through a network of some 450 suppliers and subcontractors. "As well as being a prominent player in the region's dynamic aerospace industry," continued Mr. Brown, "we are a major contributor to the Quebec economy." Claude Bechard, Quebec's Minister of Economic Development, Innovation and Export Trade, welcomed CAE's decision. "CAE, a world leader in its field, has chosen Quebec. By recognizing our highly-skilled labour force and our international leadership, CAE has underscored the position of Montreal and Quebec as a centre of excellence at the very forefront of the global aerospace industry." In his address to shareholders, Mr. Brown said there are clear indications that recent initiatives designed to enhance the Company's competitiveness and to strengthen the balance sheet have "started to gain traction". He observed that CAE has "made some tough decisions and undertaken some difficult tasks" over the past year to address new market realities - most notably the lingering uncertainty hanging over the airline industry, and the impact on its competitive position of a high Canadian dollar. Immediately following Mr. Brown's arrival as CEO last August, the Company initiated an extensive strategic review of its markets and customers as well as its internal resources and capabilities. The subsequent sale of the Marine Controls business helped to significantly strengthen CAE's financial position and its remaining operations have been realigned into three core business groups: Civil Training & Services; Military Simulation & Training; and Simulation Products. All manufacturing activities have been consolidated within the newly formed Simulation Products Group, along with Engineering, Program Management and Procurement - functions that previously operated under separate teams within the Civil and Military groups. The new structure "encourages a sharing of expertise between units and makes CAE a more efficient operation," Mr. Brown said. "It will also clarify responsibilities and accountability and improve our competitive position in the marketplace. In short, it will change the way we do business." CAE is a leading provider of simulation and modelling technologies as well as integrated training services for commercial and business aviation, and defence 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: Media contacts: Nathalie Bourque, Vice President, Global Communications, (514) 734-5788, ; Anne von Finckenstein, Manager, Public Relations, (514) 340-5370, ; Investor relations: Andrew Arnovitz, Director, Investor Relations, (514) 734-5760, ; On the Web: http://www.cae.com/

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