UPDATE 1-CAE USA gets $10 mln USAF simulator upgrade contract

Tue Aug 31, 2010 6:53am EDT

* Contract to upgrade 2 C-5 Galaxy weapon system trainers

* Says deal could go up to $50 mln in next few years

Aug 31 (Reuters) - Flight simulator and aviation training company CAE USA (CAE.TO) (CAE.N) said it landed a $10 million contract to upgrade two simulators for the United States Air Force's C-5 Galaxy heavy lift aircraft.

Tampa, Florida-based unit of CAE Inc said the deal includes options to upgrade the first two C-5 weapon system trainers as well as additional device upgrades over time, which could take the deal value to over $50 million.

Earlier in May, CAE Inc was awarded a C$90 million aircraft maintenance training contract from Lockheed Martin (LMT.N) for the Canadian Air Force's new fleet of 17 CC-130J Hercules transport planes. [ID:nN17254545]

Shares of Montreal-based CAE Inc, which have gained 5 percent in the past three months, closed at C$10.07 Monday on the Toronto Stock Exchange. They closed at $9.49 on the New York Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)

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