Ms. Samantha Golinski reports

CAE CLOSES THE SALE OF ITS HEALTHCARE BUSINESS TO MADISON INDUSTRIES

CAE Inc. has closed the sale of its health care business to Madison Industries for an enterprise value of $311-million, subject to customary adjustments. This follows CAE's announcement on Oct. 24, 2023, of the execution of a definitive agreement in respect of the transaction.

As previously disclosed, CAE intends to use the net proceeds of this sale principally to accelerate deleveraging as well as to support its continued focus on technology advancement, market leadership and cost optimization within the company's core training, simulation and aviation software markets.

With the successful divestiture of the company's health care business, CAE will further streamline its operating model and portfolio, optimize its cost structure and create efficiencies. To that effect, CAE expects to incur restructuring expenses totalling approximately $40-million over the next two fiscal quarters.

About CAE Inc.

At CAE, the company equips people in critical roles with the expertise and solutions to create a safer world. As a technology company, CAE digitalizes the physical world, deploying software-based simulation training and critical operation support solutions. Above all else, CAE empowers pilots, cabin crew, airlines, and defence and security forces to perform at their best every day and when the stakes are the highest. Around the globe, CAE is everywhere customers need it to be with more than 13,000 employees in approximately 250 sites and training locations in over 40 countries. CAE represents more than 75 years of industry firsts -- the highest-fidelity flight and mission simulators as well as training programs powered by digital technologies. CAE embeds sustainability in everything it does. Today and tomorrow, CAE will make sure its customers are ready for the moments that matter.

We seek Safe Harbor.