Montreal, Canada, October 31, 2012 - (NYSE: CAE; TSX: CAE) - CAE Healthcare announced today that it has sold its 1,000th iStan patient simulator. It was sold to the Paris Simulation Center at the University of Louisville School of Medicine in the United States. Developed in 2007, iStan was the first high-fidelity patient simulator that could be operated wirelessly for added mobility and realism in healthcare training.

Since his introduction to the market, iStan has simulated auto accidents on roadways, logging injuries in forests, heat stroke at the beach, burns from chemical plant explosions and football injuries on the field. He has been transported from point-of-injury to simulated emergency or operating rooms-all while maintaining the clinical signs and symptoms of his simulated condition.

"When he was introduced five years ago, iStan was a technological breakthrough-the first simulator that could blink, bleed, talk, cry, and simulate a real patient in almost any setting," said Michael Bernstein, President of CAE Healthcare. "iStan set a standard in the industry, and he is still one of our best-selling simulators. Today, wireless patient simulation has been widely adopted among emergency medical responders, hospital teams and medical education programs."

"We have a long history using CAE Healthcare -formerly METI- simulators," said Kevin Martin, Operations Director of the Paris Simulation Center. "We are excited about integrating this new technology into curriculum development and scheduling. We recently purchased CAE Healthcare's LearningSpace for center management and are looking to use iStan and our other simulators to deliver training content online."

Established in 2001, the 2,500-square-foot Paris Simulation Center supports training of current and future healthcare professionals at the University of Louisville Health Science Campus. The center works closely with departments, course directors, individual faculty, and other health care organizations to develop education experiences that effectively utilize simulation.

About CAE Healthcare 
CAE Healthcare offers cutting-edge learning tools to healthcare students and professionals, allowing them to develop practical experience through risk-free simulation training before treating real patients. CAE Healthcare's full spectrum of simulation solutions includes surgical and imaging simulation, curriculum, center management and highly realistic adult, pediatric and baby patient simulators. Today, approximately 7,000 CAE Healthcare simulators are in use worldwide by medical schools, nursing schools, hospitals, defense forces and other entities. www.caehealthcare.com

About CAE
CAE is a global leader in modeling, simulation and training for civil aviation and defense. The company employs approximately 8,000 people at more than 100 sites and training locations in approximately 30 countries. CAE offers civil aviation, military, and helicopter training services in more than 45 locations worldwide and trains approximately 100,000 crewmembers yearly. In addition, the CAE Oxford Aviation Academy offers training to aspiring pilot cadets in 11 CAE-operated flight schools. CAE's business is diversified, ranging from the sale of simulation products to providing comprehensive services such as training and aviation services, integrated enterprise solutions, in-service support and crew sourcing. The company applies simulation expertise and operational experience to help customers enhance safety, improve efficiency, maintain readiness and solve challenging problems. CAE is leveraging its simulation capabilities in new markets such as healthcare and mining. www.cae.com

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High-resolution photos of CAE Healthcare's iStan patient simulator are available on www.cae.com/photos

Contacts:

Nathalie Bourque, Vice President, Public Affairs and Global Communications, +1-514-734-5788, nathalie.bourque@cae.com

Investor relations: Andrew Arnovitz, Vice President, Investor Relations and Strategy, +1-514-734-5760, andrew.arnovitz@cae.com

Trade media:  Tess Mitchell, Vice President, CAE Healthcare Marketing, +1-941-504-3255, tess.mitchell@cae.com

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