CAE to Acquire Bell Aliant's xwave DSA Business

(Montreal, Quebec and Halifax, Nova Scottia, August 5, 2008) -- CAE (TSX:CAE)(NYSE:CGT) and Bell Aliant Regional Communications Income Fund ("Bell Aliant") (TSX:BA.UN) today announced that CAE has signed an asset purchase agreement to acquire Bell Aliant's Defence, Security and Aerospace (DSA) business unit, currently operated by the xwave division of Bell Aliant Regional Communications, Limited Partnership. The purchase price paid on closing will be C$15.1 million with an additional C$11.0 million to be paid contingent upon the occurrence of certain events for a potential total purchase price of $26.1 million.

xwave's DSA team supplies real-time software and systems for simulation, training, defence, and integrated lifecycle information management for the aerospace and defence industries. The division employs approximately 200 people in Ottawa, Ontario; Halifax, Nova Scotia; and Esquimalt, British Columbia.

"We are happy to expand CAE's defence capabilities and footprint across Canada, particularly in Ottawa, Atlantic Canada and British Columbia," said Marc Parent, CAE's Group President, Simulation Products and Military Training & Services. "xwave DSA is already a valued partner of CAE on several programs. By joining CAE and our CAE Professional Services team, xwave's DSA professionals will provide us with a portfolio of complementary capabilities, including systems integration that will enhance CAE's ability to serve Canada as well as the global defence and homeland security markets."

Over the past year, Bell Aliant conducted a strategic review of its DSA business and concluded that to further grow the business, it should be operated by an organization that supports large scale, multi-year and international projects in this sector.

"I am pleased that CAE, a Canadian-based company and world leader in the defence and civil aviation industries, will be leading our DSA business through the next phase of its growth," said Stephen Wetmore, President and CEO of Bell Aliant. "We look forward to working with CAE, our employees and clients through this transition."

Source : CAE

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