CAE CAE Inc

Browning West, LP (together with its affiliates, “Browning West” or “we”), which has a substantial investment in CAE Inc. (NYSE: CAE) (TSX: CAE) (“CAE” or the “Company”) representing a 4.3% economic interest in the Company, today released a letter to the board of directors of CAE (the “Board”).

The full text of the letter follows:

December 20, 2024

CAE Inc.8585 Côte-de-LiesseSaint-Laurent, QuébecH4T 1G6 Canada

Members of the Board of Directors,

We are writing to you on behalf of Browning West, LP (“Browning West”, “us”, or “we”), which manages funds that have made a substantial investment representing a 4.3% economic interest in CAE Inc. (“CAE” or the “Company”).

Browning West makes long-term investments in high quality businesses that we believe are undervalued relative to their full potential. We are constructive and engaged shareholders, with significant experience in enhancing corporate governance, recruiting and incentivizing proven leaders, and optimizing capital allocation.

We greatly admire CAE’s business and its enviable market position within the attractive aerospace and defense industries. While CAE has underperformed over the past five years, our significant investment reflects our conviction in CAE’s tremendous long-term value creation potential. Over the medium-term, we believe that CAE has the potential to grow Earnings per Share and Free Cash Flow per Share well in excess of current market expectations. To fully realize this potential, the selection of CAE’s next CEO is critical.

We are encouraged that the Board has taken the first steps toward recruiting a new CEO. However, we believe CAE must recruit a proven CEO with a verifiable track record of value creation. We urge the Board not to act hastily in its CEO search, but rather to engage with us to collectively recruit the best possible leader.

In time, and with the right leadership, we believe the Company can reclaim its status as a Canadian, Quebec-based aerospace champion. We would welcome an opportunity to speak with you as soon as possible to share our views in detail, hear your perspective, and discuss the best path forward to ensure CAE’s success. We are releasing this letter publicly in order to facilitate an immediate conversation with you and CAE’s shareholders.

As time is of the essence, we look forward to hearing from you soon.

Sincerely,

Usman S. Nabi Peter M. Lee

AdvisorsOlshan Frome Wolosky LLP and Goodmans LLP serve as Browning West’s legal counsel, and Gagnier Communications LLC is acting as its strategic communications advisor.

About Browning West, LPBrowning West is an independent investment partnership based in Los Angeles, California. The partnership employs a concentrated, long-term, and fundamental approach to investing and focuses primarily on investments in North America and Western Europe.

Browning West seeks to identify and invest in a limited number of high-quality businesses and to hold these investments for multiple years. Backed by a select group of leading foundations, family offices, and university endowments, Browning West’s unique capital base allows it to focus on long-term value creation at its portfolio companies.

ContactsBrowning Westinfo@browningwest.com 310-984-7600

Gagnier CommunicationsDan Gagnier & Riyaz LalaniBrowningWest@gagnierfc.com646-569-5897

No SolicitationThis press release is for informational purposes only and is not a solicitation of proxies. If Browning West determines to solicit proxies in respect of any meeting of shareholders of the Company, any such solicitation will be undertaken by way of an information circular or as otherwise permitted by applicable Canadian corporate and securities laws.

Disclaimer for Forward-Looking InformationCertain information in this news release may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as “outlook,” “objective,” “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “plans,” “continue,” or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of Browning West regarding discussions with the Company. Although Browning West believes that the expectations reflected in any such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. Except as required by law, Browning West does not intend to update these forward-looking statements.