Mr. Matthew Bromberg reports

CAE TO SELL FLIGHTSCAPE TO SITA

CAE Inc. has entered into a definitive agreement to sell Flightscape, its airline operations software business, to SITA, a global aviation technology company, for an enterprise value of $500-million (U.S.), subject to customary adjustments.

The transaction is expected to close in the first half of 2027, following receipt of regulatory approvals and satisfaction of the remaining closing conditions.

"We are proud of the business the Flightscape team has built and the market position it has earned," said Matthew Bromberg, president and chief executive officer. "We believe SITA is the right owner for Flightscape's next chapter and is well positioned to support its customers, employees, and continued growth.

"This transaction is fully consistent with our transformation plan and will sharpen CAE's focus to our core civil and defence businesses, where we are best positioned to lead," continued Mr. Bromberg. "Through this accretive transaction, we are strengthening our ability to deliver greater value for customers, drive profitable growth and create long-term shareholder value."

Flightscape is a leading airline operations software provider serving airlines and airports around the world. Through sustained investment, strong leadership and continued innovation, the business has earned the trust of customers and established a leading position in its market.

"Airlines need to make the best possible use of their aircraft, crews and infrastructure while responding to increasingly complex operational challenges," said David Lavorel, chief executive officer, SITA. "With Flightscape, we will bring together our complementary capabilities to strengthen what we offer airlines and connect their operational decisions with insight from across the aviation ecosystem. That will help our customers anticipate disruption, recover more effectively and run more resilient operations."

Flightscape will continue operating as usual until the transaction closes. Customers can expect continuity in service, support and product development, and employees will remain focused on delivering value to customers worldwide.

CAE intends to deploy the sale proceeds in accordance with its disciplined capital allocation priorities, including investing in its core simulation and training businesses and returning capital to shareholders, while maintaining financial flexibility.

CAE has engaged BMO Capital Markets and Citigroup Global Markets as its financial advisers and Norton Rose Fulbright as its legal adviser for the transaction.

About CAE Inc.

At CAE, the company exists to make the world safer. CAE delivers cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, the company empowers pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest. Around the globe, the company is everywhere customers need the company to be with sites and training locations in over 40 countries. For nearly 80 years, CAE has been at the forefront of innovation, consistently seeking to set the standard by delivering excellence in high-fidelity flight simulators and training solutions, while embedding sustainability at the heart of everything the company does. By harnessing technology and enhancing human performance, the company strives to be the trusted partner in advancing safety and mission readiness -- today and tomorrow.

We seek Safe Harbor.