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NGRAIN Partners with CAE to win Canadian Department of National Defence Contract for Simulation Services

In partnership with CAE, NGRAIN will be providing simulation services to the Canadian Department of National Defence.

VANCOUVER, BC — June 20, 2007 — NGRAIN, provider of 3D performance support solutions, announced that it will be delivering customized 3D solutions to the Canadian Department of National Defence (DND) in partnership with the CAE Professional Services (PS) team.

NGRAIN's activities will fall under a contract that was awarded to CAE by the DND and is valued at up to $10 million. Along with the other members of the CAE PS team, NGRAIN will be providing its award-winning interactive 3D training solutions to support DND Synthetic Environment (SE) project activities.

NGRAIN will leverage the power of its 3D interactive technology to enable the DND to rapidly and effectively conduct SE activities, which will include experiments, mission rehearsals, demonstrations, and exercises. NGRAIN will provide 3D capabilities either through stand-alone solutions, or via tools that can be integrated into a larger simulation deliverable. The services to be provided to the DND will enable simulation support services for all Air Force fleets within a synthetic environment.

"Through our partnership with NGRAIN, we have witnessed first hand how the Company's technology allows military and aerospace organizations to rapidly incorporate interactive 3D equipment solutions into simulations, courseware, and technical manuals," stated Claude Lauzon, Director Business Development at CAE. "Our partnership on this project will enable both NGRAIN and CAE to better address the growing need within the DND for 3D simulation support solutions."

NGRAIN's solutions accelerate learning on complex equipment, which ultimately help reduce maintenance time. The Company's technology has also successfully increased the safety of military equipment, helping to protect the security of armed forces personnel at home and in the field. As the technology is designed to seamlessly support distributed learning, the solution is also an ideal fit for today's military organizations, which increasingly see their troops stationed over wide geographical areas.

"This is an exciting contract for NGRAIN," said Paul Lindahl, NGRAIN CEO. "It gives us the opportunity to support the DND as it advances the use of simulation in support of military training and operations. Combined with CAE's expertise, our solutions will ensure the effectiveness, stability, integrity, and efficient development and operation of designated DND simulation practices. We are extremely pleased to be part of the CAE team and to be a part of an opportunity that will provide the DND with a definitive return on investment."

About NGRAIN
NGRAIN transforms the sustainment of complex equipment with 3D performance support solutions for the military, defense manufacturing, commercial aviation, and energy industries. NGRAIN increases equipment readiness by accelerating learning on complex equipment, enabling first-time-right performance, and reducing maintenance cycle time.

NGRAIN is optimized for web deployment and portable devices. With NGRAIN, anyone can rapidly incorporate interactive 3D equipment simulations into sustainment applications, including courseware and technical manuals.

Customers include all branches of the United States military, the Canadian Forces, and leading defense manufacturers and system integrators, including Lockheed Martin, Northrop Grumman, and CAE.

Visit http://www.ngrain.com to learn more.

For additional information, please contact:

Sarah Grant, High Road Communications for NGRAIN
514.908.0110 ext. 313, sgrant@highroad.com