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<SEC-DOCUMENT>0001173382-06-000022.txt : 20061109
<SEC-HEADER>0001173382-06-000022.hdr.sgml : 20061109
<ACCEPTANCE-DATETIME>20061109104027
ACCESSION NUMBER:		0001173382-06-000022
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060930
FILED AS OF DATE:		20061109
DATE AS OF CHANGE:		20061109

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAE INC
		CENTRAL INDEX KEY:			0001173382
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31402
		FILM NUMBER:		061199986

	BUSINESS ADDRESS:	
		STREET 1:		2025 LOGISTICS DRIVE
		CITY:			MISSISSAUGA
		STATE:			A6
		ZIP:			L5S 1Z9
		BUSINESS PHONE:		514-341-6780

	MAIL ADDRESS:	
		STREET 1:		8585 COTE DE LIESSE, CP 1800
		STREET 2:		DEPT. 04
		CITY:			ST-LAURENT, QUEBEC
		STATE:			A6
		ZIP:			H4L 4X4
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form609nov06.htm
<DESCRIPTION>FORM 6K-PRESS RELEASE NOV. 9-06
<TEXT>

<HTML>
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   <TITLE>form609nov06.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<P align=center><B><FONT face=serif>SECURITIES AND EXCHANGE COMMISSION<BR>
&nbsp;Washington, DC 20549 </FONT></B></P>
<P align=center><B><FONT face=serif>Form 6-K</FONT></B></P>
<P align=center><FONT face=serif>Report of Foreign Issuer </FONT><BR>
<FONT face=serif>Pursuant to Rule 13a-16 or 15d-16 of</FONT><BR>
<FONT face=serif>the Securities Exchange Act of 1934 </FONT></P>
<P align=center><FONT face=serif>For the month of: November 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Commission File Number: 1-31402</FONT></P>
<P align=center><B><FONT face=serif>CAE INC. </FONT></B><BR>
<FONT face=serif>(Name of Registrant)</FONT></P>
<P align=center><B><FONT face=serif>8585 Cote de Liesse </FONT></B><BR>
<B><FONT face=serif>Saint-Laurent, Quebec </FONT></B><BR>
<B><FONT face=serif>Canada H4T 1G6 </FONT></B><BR>
<FONT face=serif>(Address of Principal Executive Offices)</FONT></P>
<P align=left><FONT face=serif>Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: </FONT></P>
<P align=center><FONT face=serif>Form 20-F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Form 40-F X</FONT></P>
<P align=left><FONT face=serif>Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): </FONT><U><FONT face=serif>X</FONT></U></P>
<P align=left><FONT face=serif>Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the SEC pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: </FONT></P>
<P align=center><FONT face=serif>Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>No X</FONT></P>
<P align=left><FONT face=serif>If &#147;Yes&#148; is marked, indicate the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A </FONT></P>
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<P align=center><B><FONT face=serif>SIGNATURES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="59%">&nbsp; </TD>
     <TD align=left width="40%" colSpan=2><B><FONT face=serif size=4>CAE Inc.</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="59%"><FONT face=serif>Date: November 9, 2006</FONT>&nbsp; </TD>
     <TD align=left width="1%"><FONT face=serif>By:</FONT>&nbsp; </TD>
     <TD align=left width="43%"><FONT face=serif>/s/ Hartland Paterson</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="56%" colSpan=2></TD>
     <TD width="43%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="59%">&nbsp; </TD>
     <TD align=left width="1%"><FONT face=serif>Name:</FONT>&nbsp; </TD>
     <TD align=left width="43%"><FONT face=serif>Hartland J. Paterson</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="59%">&nbsp; </TD>
     <TD align=left width="1%"><FONT face=serif>Title:</FONT>&nbsp; </TD>
     <TD align=left width="43%"><FONT face=serif>Vice President Legal, General Counsel</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="59%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="43%"><FONT face=serif>and Corporate Secretary</FONT>&nbsp; </TD></TR></TABLE><BR>
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<IMG src="pr09nov06en1x1x1.jpg" border=0>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=6>Press Release</FONT></B>
<P align=left><B><FONT face=sans-serif>CAE reports second quarter results for fiscal year 2007</FONT></B></P>
<UL>
<LI><B><FONT face=sans-serif size=2>Net earnings increased 81% year over year to CDN$30.9 million</FONT></B>
<LI><B><FONT face=sans-serif size=2>Revenue steady year over year at CDN$280.4 million</FONT></B>
<LI><B><FONT face=sans-serif size=2>New orders of CDN$421.1 million added to backlog</FONT></B>
<LI><B><FONT face=sans-serif size=2>Free cash flow of CDN$10.7 million generated this quarter</FONT></B> </LI></UL>
<P align=left><B><I><FONT face=sans-serif size=2>Montreal, November 9, 2006 &#150;</FONT></I></B><FONT face=sans-serif size=2> (NYSE: CGT; TSX: CAE) &#150; CAE today reported financial results for the second quarter ended September 30, 2006. Net earnings were $30.9 million (or $0.12 per share) this quarter, compared to $17.1 million ($0.07 per share) in the second quarter of last year. All financial information is in Canadian dollars. </FONT></P>
<TABLE style="WIDTH: 683px; HEIGHT: 216px" cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="39%"><B><FONT face=sans-serif size=2>Summary of Consolidated Results</FONT></B>&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="10%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>(millions, except operating margins)</FONT>&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q2-2007</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q1-2007</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q4-2006</FONT>&nbsp; </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>Q3-2006</FONT>&nbsp; </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>Q2-2006</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="95%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>Revenue</FONT>&nbsp; </TD>
     <TD align=left width="4%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>280.4</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>301.8</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>284.3</FONT>&nbsp; </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>276.6</FONT>&nbsp; </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>280.3</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>EBIT</FONT>&nbsp; </TD>
     <TD align=left width="4%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>44.9</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>47.5</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>9.5</FONT>&nbsp; </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>32.7</FONT>&nbsp; </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>28.1</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><I><FONT face=sans-serif size=2>As a % of revenue</FONT></I>&nbsp; </TD>
     <TD align=left width="4%"><I><FONT face=sans-serif size=2>%</FONT></I>&nbsp; </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>16.0</FONT></I>&nbsp; </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>15.7</FONT></I>&nbsp; </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>3.3</FONT></I>&nbsp; </TD>
     <TD align=right width="10%"><I><FONT face=sans-serif size=2>11.8</FONT></I>&nbsp; </TD>
     <TD align=right width="9%"><I><FONT face=sans-serif size=2>10.0</FONT></I>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>Backlog</FONT>&nbsp; </TD>
     <TD align=left width="4%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,584.0</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,433.2</FONT>&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,460.0</FONT>&nbsp; </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>2,368.3</FONT>&nbsp; </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>2,433.2</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="95%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Net earnings from continuing operations, excluding non-recurring items, were $31.1 million ($0.12 per share) this quarter, compared to $20.0 million (or $0.08 per share) in the second quarter of last year.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Consolidated revenue was $280.4 million, compared to $280.3 million in the second quarter last year.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Second quarter consolidated earnings before interest and taxes</FONT><SUP><FONT face=sans-serif size=2>(1)</FONT></SUP><FONT face=sans-serif size=2> (EBIT) were $44.9 million, or 16.0% of revenue. Not including the effect of non-recurring items, EBIT was $46.6 million, or 16.6% of revenue. </FONT></P>
<P align=left><FONT face=sans-serif size=2>We launched the CAE Global Academy, a training alliance designed to address the global shortage of pilots, and also secured nearly $220 million in new military contracts including a range of programs for US and British forces. We secured more than $100 million in new training contracts for the civil market and won orders for 11 civil full-flight simulators (FFSs) during the second quarter. Our total for the year to date is now at 17 and we expect our full-flight simulator orders to be at 25 for the fiscal year. </FONT></P>
<P align=left><FONT face=sans-serif size=2>&#147;The pace of our business activity in the second quarter is the result of the strength of the aerospace industry and our ability to improve our market position,&#148; said Robert E. Brown, CAE&#146;s President and Chief Executive Officer. &#147;We are seeing the benefits of a well diversified base of business with a balance between the civil and military markets, and between products and services. We continue to evaluate and implement growth initiatives with the goal of reducing cyclicality and securing CAE&#146;s future as a technology and training services leader.&#148; </FONT></P>
<P align=left><FONT face=sans-serif size=2>There were also some positive developments since the end of the quarter:</FONT></P>
<UL>
<LI><FONT face=sans-serif size=2>We announced the launch of a global training joint venture with Embraer to provide training</FONT> <FONT face=sans-serif size=2>services for the new Phenom series of Very Light Jet (VLJ) and Light Jet (LJ) aircraft.</FONT>
<LI><FONT face=sans-serif size=2>We saw an increase in pilot provisioning activity, and there are now more than 650 cadets</FONT> <FONT face=sans-serif size=2>enrolled in training programs throughout the CAE Global Academy. The alliance currently</FONT> <FONT face=sans-serif size=2>consists of three flight-training organizations, a number that we expect to double before the</FONT> <FONT face=sans-serif size=2>end of this fiscal year.</FONT> </LI></UL>
<P align=left><FONT face=sans-serif size=2>1</FONT></P>
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<P align="left">
<B><FONT size=2 face="sans-serif">Business segment highlights </FONT></B></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Simulation Products/Civil</FONT></B></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=39%>
<B><FONT size=2 face="sans-serif">Financial results</FONT></B>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=10%>
&nbsp;
	</TD>
	<TD align=left width=9%>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">(millions, except operating margins)</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q2-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q1-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q4-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">Q3-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">Q2-2006</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Revenue</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">84.2</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">74.2</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">78.0</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">63.0</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">55.8</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Segment operating income</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">18.6</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">11.0</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">9.3</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">10.4</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">3.4</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<I><FONT size=2 face="sans-serif">Operating margins</FONT></I>&nbsp;
	</TD>
	<TD align=left width=5%>
<I><FONT size=2 face="sans-serif">%</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">22.1</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">14.8</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">11.9</FONT></I>&nbsp;
	</TD>
	<TD align=right width=10%>
<I><FONT size=2 face="sans-serif">16.5</FONT></I>&nbsp;
	</TD>
	<TD align=right width=9%>
<I><FONT size=2 face="sans-serif">6.1</FONT></I>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Backlog</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">313.2</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">297.5</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">284.4</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">312.3</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">280.3</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">Revenue in the SP/C segment was &#36;84.2 million this quarter, up by 13% from last quarter and by 51% over the same period last year. The increase was the result of a high level of recent orders, combined with a
shorter production cycle.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Segment operating income was &#36;18.6 million, compared to &#36;3.4 million for the same period last year. The increase was from higher revenue and a higher operating margin. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The segment&#146;s higher than usual operating margin of 22.1% this quarter was due to several factors, including a higher number of simulator deliveries than usual, coupled with a favourable mix of programs, as well
as improvements in program execution. In addition, we received a contribution from Investissement Qu&eacute;bec for costs incurred since June 2005 related to Project Phoenix, our research and development program. We do not anticipate benefiting from
all of these factors on a regular basis going forward.</FONT><I><FONT size=2 face="sans-serif"> </FONT></I></P>
<P align="left">
<FONT size=2 face="sans-serif">New orders totalled &#36;99.6 million, and segment backlog was &#36;313.2 million at the end of the quarter.</FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Training &amp; Services/Civil </FONT></B></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=39%>
<B><FONT size=2 face="sans-serif">Financial results</FONT></B>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=10%>
&nbsp;
	</TD>
	<TD align=left width=9%>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">(millions, except operating margins)</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q2-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q1-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q4-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">Q3-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">Q2-2006</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Revenue</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">78.4</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">83.7</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">81.1</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">78.0</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">79.4</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Segment operating income</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">11.3</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">18.4</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">15.1</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">14.3</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">11.6</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<I><FONT size=2 face="sans-serif">Operating margins</FONT></I>&nbsp;
	</TD>
	<TD align=left width=5%>
<I><FONT size=2 face="sans-serif">%</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">14.4</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">22.0</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">18.6</FONT></I>&nbsp;
	</TD>
	<TD align=right width=10%>
<I><FONT size=2 face="sans-serif">18.3</FONT></I>&nbsp;
	</TD>
	<TD align=right width=9%>
<I><FONT size=2 face="sans-serif">14.6</FONT></I>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Backlog</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">842.9</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">817.6</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">809.0</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">805.2</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">830.4</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">Revenue in the TS/C segment was &#36;78.4 million, stable compared to the same period last year. The change from last quarter was mainly due to seasonality and some disruption from the recent restructuring. We saw an
increase in activity at our training centres compared to last year because of a stronger aerospace industry and demand for training that continues to be stronger than overall historical levels. The increased volume was offset by the appreciation of
the Canadian dollar against the Euro and the US dollar over the same period. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Segment operating income was &#36;11.3 million (14.4% of revenue), down by 3% compared to &#36;11.6 million (14.6% of revenue) for the same period last year. Given the high degree of operating leverage inherent to the
training segment, the seasonally lower revenue in the second quarter caused segment operating income to decrease by &#36;7.1 million from last quarter While the segment&#146;s operating margin is relatively unaffected by foreign exchange movements,
the appreciation of the Canadian dollar year over year reduced the translation value of the segment&#146;s operating income. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">2</FONT></P>

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<P align="left">
<FONT size=2 face="sans-serif">We are nearing the completion of our simulator redeployment activities, and the remaining 10 FFSs will be moved to their new locations over the balance of the fiscal year. In all, 28 FFSs (nearly one-third of the
installed base) will have been moved as part of the restructuring plan. We expect some additional disruption as relocated simulators ramp back up to capacity. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">New orders totalled &#36;103.1 million, and segment backlog was &#36;842.9 million at the end of the quarter. </FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Simulation Products/Military </FONT></B><FONT size=2 face="sans-serif"> </FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=39%>
<B><FONT size=2 face="sans-serif">Financial results</FONT></B>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=10%>
&nbsp;
	</TD>
	<TD align=left width=9%>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">(millions, except operating margins)</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q2-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q1-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q4-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">Q3-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">Q2-2006</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Revenue</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">64.3</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">95.8</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">77.5</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">82.8</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">94.4</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Segment operating income</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">7.4</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">11.2</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">6.9</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">6.3</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">9.7</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<I><FONT size=2 face="sans-serif">Operating margins</FONT></I>&nbsp;
	</TD>
	<TD align=left width=5%>
<I><FONT size=2 face="sans-serif">%</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">11.5</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">11.7</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">8.9</FONT></I>&nbsp;
	</TD>
	<TD align=right width=10%>
<I><FONT size=2 face="sans-serif">7.6</FONT></I>&nbsp;
	</TD>
	<TD align=right width=9%>
<I><FONT size=2 face="sans-serif">10.3</FONT></I>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Backlog</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">626.3</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">475.2</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">540.5</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">453.0</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">493.1</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">Revenue in the SP/M segment was &#36;64.3 million this quarter, down by 32% over the same period last year. The uneven nature of large revenue items in the SP/M segment this quarter was due to lower activity on certain
European programs and lower revenue on some US programs.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Conversely, the second quarter of fiscal 2006 benefited from higher activity on some European programs, particularly the German NH90 equipment program where we reached key milestones. Last year we also benefited from
higher activity on some North American programs and a lower Canadian dollar compared to the Euro and the US dollar.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Segment operating income this quarter was &#36;7.4 million, down by 24% compared to &#36;9.7 million for the same period last year. The decrease in income from lower revenues was partly offset by a contribution from
Investissement Qu&eacute;bec for research and development costs incurred since June 2005 related to Project Phoenix. </FONT><I><FONT size=2 face="sans-serif"> </FONT></I></P>
<P align="left">
<FONT size=2 face="sans-serif">New orders totalled &#36;206.7 million, and segment backlog was &#36;626.3 million at the end of the quarter. We expect variations in the level of order bookings between quarters in both Military segments because of
the unique nature of military contracts and the irregular timing in which they are awarded.</FONT><B><FONT size=2 face="sans-serif"> </FONT></B></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Training &amp; Services/Military </FONT></B></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=39%>
<B><FONT size=2 face="sans-serif">Financial results</FONT></B>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=11%>
&nbsp;
	</TD>
	<TD align=left width=10%>
&nbsp;
	</TD>
	<TD align=left width=9%>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">(millions, except operating margins)</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q2-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q1-2007</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">Q4-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">Q3-2006</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">Q2-2006</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Revenue</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">53.5</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">48.1</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">47.7</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">52.8</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">50.7</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Segment operating income</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">9.3</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">11.6</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">3.3</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">8.4</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">5.4</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<I><FONT size=2 face="sans-serif">Operating margins</FONT></I>&nbsp;
	</TD>
	<TD align=left width=5%>
<I><FONT size=2 face="sans-serif">%</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">17.4</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">24.1</FONT></I>&nbsp;
	</TD>
	<TD align=right width=11%>
<I><FONT size=2 face="sans-serif">6.9</FONT></I>&nbsp;
	</TD>
	<TD align=right width=10%>
<I><FONT size=2 face="sans-serif">15.9</FONT></I>&nbsp;
	</TD>
	<TD align=right width=9%>
<I><FONT size=2 face="sans-serif">10.7</FONT></I>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=39%>
<FONT size=2 face="sans-serif">Backlog</FONT>&nbsp;
	</TD>
	<TD align=left width=5%>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">801.6</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">842.9</FONT>&nbsp;
	</TD>
	<TD align=right width=11%>
<FONT size=2 face="sans-serif">826.1</FONT>&nbsp;
	</TD>
	<TD align=right width=10%>
<FONT size=2 face="sans-serif">797.8</FONT>&nbsp;
	</TD>
	<TD align=right width=9%>
<FONT size=2 face="sans-serif">829.4</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=1>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">Revenue in the TS/M segment was &#36;53.5 million this quarter, up by 6% over the same period last year. This quarter benefited from more activity on the CF-18 support contract in Canada and more C-130 Hercules
training activity in Tampa, Florida in the US. Increased revenue year over year was partly offset by the appreciation of the Canadian dollar against the Euro and the US dollar over the period.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Segment operating income was &#36;9.3 million compared to &#36;5.4 million for the same period last year. The increase was mainly due to annual labour rate adjustments related to US military contracts, combined with
TPC government contributions for service-related research and development work.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">3</FONT></P>

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<P align=left><FONT face=sans-serif size=2>New orders totalled $11.7 million this quarter, and segment backlog was $801.6 million at the end of the quarter.</FONT></P>
<P align=left><FONT face=sans-serif size=2>In the military business as a whole, combined revenue for the quarter was $117.8 million and operating income was $16.7 million, resulting in an operating margin of 14.2% .</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Cash flow and financial position</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>As of the end of the second quarter, we generated $59.6 million of cash from continuing operations. We invested $40.9 million in capital expenditures, partly offset by $6.9 million of non-recourse financing, and increased working capital by $16.0 million. Overall, free cash flow</FONT><SUP><FONT face=sans-serif size=2>(2) </FONT></SUP><FONT face=sans-serif size=2>was $10.7 million this quarter. </FONT></P>
<P align=left><FONT face=sans-serif size=2>Net debt</FONT><SUP><FONT face=sans-serif size=2>(3) </FONT></SUP><FONT face=sans-serif size=2>was $199.7 million for the quarter, which is consistent with last quarter at $198.3 million.</FONT></P>
<P align=left><FONT face=sans-serif size=2>CAE will pay a dividend of $0.01 per share on December 29, 2006, to shareholders of record on December 15, 2006. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Additional consolidated financial results</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>The consolidated backlog from continuing operations was $2.584 billion at the end of this quarter, compared to $2.433 billion at the end of last quarter. New orders of $421.1 million were added to backlog this quarter. This was partly offset by $280.4 million of revenues generated from backlog.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Capital expenditures for the quarter were $40.9 million. We expect total capital expenditures in 2007 to be higher than the level reached last year because we are experiencing favorable market conditions and are looking at a number of growth initiatives requiring additional investment.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Income taxes were $12.5 million this quarter, representing an effective tax rate of 29%. We expect the effective income tax rate for fiscal 2007 to be approximately 31% (not including the effect of non-recurring items). </FONT></P>
<P align=left><FONT face=sans-serif size=2>Excluding non-recurring items, earnings per share from continuing operations were $0.12, compared to $0.12 last quarter and $0.08 in the second quarter of last year. Our second quarter results included a non-recurring charge of $1.1 million after tax for restructuring and related costs. These costs were mainly offset by interest revenue of $1.4 million on the early repayment of notes receivable. </FONT></P>
<P align=left><FONT face=sans-serif size=2>You will find a more detailed discussion of our results by segment in the management&#146;s discussion and analysis (MD&amp;A) posted on our website at </FONT><U><FONT face=sans-serif color=#0000ff size=2>http://www.cae.com/financialsQ2FY07</FONT></U><FONT face=sans-serif size=2>.</FONT><B><FONT face=sans-serif size=2> </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Conference call</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>CAE will host a conference call today at 13:00 EST for analysts, institutional investors and the media. North American participants can listen to the conference by dialling 1-866-542-4236 or (514) 868-1042. Overseas participants can dial +800-6578-9868 or 1 (514) 868-1042. The conference call will also be audio Webcast live for the public at </FONT><U><FONT face=sans-serif color=#0000ff size=2>www.cae.com</FONT></U><FONT face=sans-serif size=2>. </FONT></P>
<P align=left><FONT face=sans-serif size=2>CAE is a world leader in providing simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe. We design, manufacture and supply simulation equipment and offer training and services. This includes integrated modelling, simulation and training solutions for commercial airlines, business aircraft operators, aircraft manufacturers and military organizations and a global network of training centres for pilots, and in some instances, cabin crew and maintenance workers.</FONT></P>
<P align=left><FONT face=sans-serif size=2>With annual revenues of over CDN$1 billion, CAE operates in 19 countries around the world. CAE has sold nearly 700 simulators and training devices to airlines, aircraft manufacturers,</FONT></P>
<P align=left><FONT face=sans-serif size=2>4</FONT></P>
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<P align=left><FONT face=sans-serif size=2>training centres and defence forces for air and ground purposes in more than 40 countries. We have over 100 full-flight simulators in more than 20 aviation training centres, serving approximately 3,500 airlines, aircraft operators and manufacturers across the globe. CAE licenses its simulation software to various market segments and has a professional services division assisting customers with a wide range of simulation-based needs. </FONT></P>
<P align=left><FONT face=sans-serif size=2>Certain statements made in this news release, including, but not limited to, statements that are not historical facts, are forward-looking and are subject to important risks, uncertainties and assumptions. The results or events predicted in these forward-looking statements may differ materially from actual results or events. These statements do not reflect the potential impact of any non-recurring or other special items or events that are announced or completed after the date of this news release, including mergers, acquisitions, or other business combinations and divestitures.</FONT></P>
<P align=left><FONT face=sans-serif size=2>You will find more information about the risks and uncertainties associated with our business in the MD&amp;A section of our annual report and annual information form for the year ended March 31, 2006. These documents have been filed with the Canadian securities commissions and are available on our website (</FONT><U><FONT face=sans-serif color=#0000ff size=2>www.cae.com</FONT></U><FONT face=sans-serif size=2>) and on SEDAR (</FONT><U><FONT face=sans-serif color=#0000ff size=2>www.sedar.com</FONT></U><FONT face=sans-serif size=2>). They have also been filed with the US Securities and Exchange Commission under Form 40-F and are available on EDGAR (</FONT><U><FONT face=sans-serif color=#0000ff size=2>www.sec.gov)</FONT></U><FONT face=sans-serif size=2>. The forward-looking statements contained in this news release represent our expectations as of November 9, 2006 and, accordingly, are subject to change after this date.</FONT></P>
<P align=left><FONT face=sans-serif size=2>We do not update or revise forward-looking information even if new information becomes available unless legislation requires us to do so. You should not place undue reliance on forward-looking statements.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Notes</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>(1) Earnings before interest and taxes (EBIT) does not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). Please refer to CAE Inc.&#146;s 2007 Second Quarter MD&amp;A dated November 9, 2006 for more details</FONT><B><FONT face=sans-serif size=2>.</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>(2)</FONT><B><FONT face=sans-serif size=2> </FONT></B><FONT face=sans-serif size=2>Free cash flow is a measure that tells us how much cash we have available to build the business, repay debt and meet ongoing obligations. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting capital expenditures (including capitalized costs) and dividends paid, and then adding the proceeds from sales and leaseback and other asset-specific financing. Free cash flow does not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). Please refer to CAE Inc.&#146;s 2007 Second Quarter MD&amp;A dated November 9, 2006 for more details. </FONT></P>
<P align=left><FONT face=sans-serif size=2>(3) Net debt is a measure we use to monitor how much debt we have after taking into account liquid assets such as cash and cash equivalents. Net debt does not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). Please refer to CAE Inc.&#146;s 2007 Second Quarter MD&amp;A dated November 9, 2006 for more details.</FONT></P>
<P align=left><FONT face=sans-serif size=2>&#150; 30 &#150; </FONT></P>
<P align=left><FONT face=sans-serif size=2>On the Web: </FONT><U><FONT face=sans-serif color=#0000ff size=2>www.cae.com</FONT></U><BR>
<BR>
<B><FONT face=sans-serif size=2>Media contact: </FONT></B></P>
<P align=left><FONT face=sans-serif size=2>Nathalie Bourque, Vice President, Global Communications, (514) 734-5788,<BR>
&nbsp;</FONT><U><FONT face=sans-serif color=#0000ff size=2>nathalie.bourque@cae.com</FONT></U></P>
<P align=left><B><FONT face=sans-serif size=2>Investor relations</FONT></B><FONT face=sans-serif size=2>:</FONT></P>
<P align=left><FONT face=sans-serif size=2>Andrew Arnovitz, Director, Investor Relations, (514) 734-5760, </FONT><U><FONT face=sans-serif color=#0000ff size=2>andrew.arnovitz@cae.com</FONT></U></P>
<P align=left><FONT face=sans-serif size=2>5</FONT></P>
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<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif color=#0000ff size=4>Consolidated Balance Sheets</FONT>&nbsp; </TD>
     <TD align=left width="16%">&nbsp; </TD>
     <TD align=left width="12%"></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=left width="10%"></TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=1>(Unaudited)</FONT>&nbsp; </TD>
     <TD align=left width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=1>As at September 30</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=1>As at March 31</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT>&nbsp; </TD>
     <TD align=left width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=1>2006</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><B><FONT face=sans-serif color=#0000ff size=2>Assets</FONT></B>&nbsp; </TD>
     <TD align=left width="16%">&nbsp; </TD>
     <TD align=left width="12%"></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=left width="10%"></TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><I><FONT face=sans-serif size=2>Current assets</FONT></I>&nbsp; </TD>
     <TD align=left width="16%">&nbsp; </TD>
     <TD align=left width="12%"></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=left width="10%"></TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Cash and cash equivalents</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>110.8</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>81.1</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Accounts receivable</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>318.1</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>260.3</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Inventories</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>99.4</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>93.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Prepaid expenses</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>27.2</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>25.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Income taxes recoverable</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>91.4</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>75.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Future income taxes</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>7.1</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>5.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>654.0</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>541.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Property, plant and equipment, net</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>880.5</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>839.3</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Future income taxes</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>73.0</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>78.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Intangible assets</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>24.8</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>23.3</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Goodwill</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>89.1</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>92.0</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Other assets</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>119.6</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>136.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Long-term assets held for sale</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>1.9</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>5.9</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; </TD>
     <TD align=right width="16%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>1,842.9</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>1,716.1</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><B><FONT face=sans-serif color=#0000ff size=2>Liabilities and Shareholders&#146; Equity</FONT></B>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=left width="12%"></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=left width="10%"></TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><I><FONT face=sans-serif size=2>Current liabilities</FONT></I>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=left width="12%"></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=left width="10%"></TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Accounts payable and accrued liabilities</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>365.4</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>373.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Deposits on contracts</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>177.7</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>146.4</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Current portion of long-term debt</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>36.3</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>10.4</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Future income taxes</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>16.0</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>14.5</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>595.4</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>545.0</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Long-term debt</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>274.2</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>260.9</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Deferred gains and other long-term liabilities</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>202.3</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>206.5</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Future income taxes</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>43.3</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>28.4</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>1,115.2</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>1,040.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><B><FONT face=sans-serif color=#0000ff size=2>Shareholders&#146; Equity</FONT></B>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=left width="12%"></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=left width="10%"></TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Capital stock</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>393.7</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>389.0</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Contributed surplus</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>5.5</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>5.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Retained earnings</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>454.3</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>395.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%"><FONT face=sans-serif size=2>Cumulative translation adjustment</FONT>&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>(125.8</FONT></B> </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>)</FONT></B>&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>(115.2</FONT> </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; </TD>
     <TD align=right width="16%">&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>727.7</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="8%"></TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>675.3</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="45%">&nbsp; </TD>
     <TD align=right width="16%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>1,842.9</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="10%"><FONT face=sans-serif size=2>1,716.1</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_7"></A>
<P align=left><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Earnings </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="55%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="14%" colSpan=4></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="15%" colSpan=4><B><FONT face=sans-serif size=1>Three months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="14%" colSpan=4><B><FONT face=sans-serif size=1><B><FONT face=sans-serif size=1>Six months</FONT></B> ended</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><I><FONT face=sans-serif size=1>(Unaudited)</FONT></I>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="15%" colSpan=4><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="14%" colSpan=4><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><I><FONT face=sans-serif size=1>((amounts in millions of Canadian dollars, except per share amounts)</FONT></I>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2005</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2005</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Revenue</FONT>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>280.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>280.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>582.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>546.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Earnings before interest and income taxes</FONT>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>44.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>28.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>92.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>64.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Interest expense, net</FONT>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>1.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>4.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>4.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>9.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Earnings before income taxes</FONT>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>43.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>23.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>88.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>54.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Income tax expense</FONT>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>12.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>5.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>23.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>16.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Earnings from continuing operations</FONT>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>31.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>17.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>64.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>38.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Results of discontinued operations</FONT>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>(0.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>(0.7</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>(0.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>(0.7</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><B><FONT face=sans-serif size=2>Net earnings</FONT></B>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>30.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>17.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>63.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>37.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><B><FONT face=sans-serif size=2>Basic and diluted earnings per share from continuing operations</FONT></B>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>0.12</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>0.07</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>0.26</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>0.15</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><B><FONT face=sans-serif size=2>Basic and diluted earnings per share</FONT></B>&nbsp; </TD>
     <TD align=left width="3%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>0.12</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>0.07</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%"><B><FONT face=sans-serif size=2>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>0.25</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>0.15</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="55%"><FONT face=sans-serif size=2>Weighted average number of shares outstanding (Basic)</FONT>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>251.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>249.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>250.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>249.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Retained Earnings </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="41%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=left width="19%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="15%" colSpan=4></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="28%" colSpan=4><B><FONT face=sans-serif size=1>Three months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="15%" colSpan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><FONT face=sans-serif size=1>Six months</FONT></B>&nbsp;<B><FONT face=sans-serif size=1>ended</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="28%" colSpan=4><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="15%" colSpan=4>&nbsp;&nbsp;&nbsp; <B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%"><I><FONT face=sans-serif size=1>(Unaudited)</FONT></I>&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=left width="19%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="15%" colSpan=4></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%"><I><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT></I>&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="19%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2005</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="6%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2005</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="41%">
<HR noShade SIZE=1>
</TD>
     <TD width="51%" colSpan=12>
<HR noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%"><FONT face=sans-serif size=2>Retained earnings at beginning of period</FONT>&nbsp; </TD>
     <TD align=right width="2%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="19%"><B><FONT face=sans-serif size=2>425.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>359.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="2%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="6%"><B><FONT face=sans-serif size=2>395.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>340.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%"><FONT face=sans-serif size=2>Net earnings</FONT>&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="19%"><B><FONT face=sans-serif size=2>30.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>17.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="6%"><B><FONT face=sans-serif size=2>63.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>37.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%"><FONT face=sans-serif size=2>Dividends</FONT>&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="19%"><B><FONT face=sans-serif size=2>(2.5</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>(2.5</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT>&nbsp; </TD>
     <TD align=left width="2%"></TD>
     <TD align=right width="6%"><B><FONT face=sans-serif size=2>(5.0</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B>&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>(5.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="41%"><FONT face=sans-serif size=2>Retained earnings at end of period</FONT>&nbsp; </TD>
     <TD align=right width="2%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="19%"><B><FONT face=sans-serif size=2>454.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>373.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="2%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="6%"><B><FONT face=sans-serif size=2>454.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="3%"><FONT face=sans-serif size=2>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>373.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<A name="page_8"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Cash Flow</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="9%" colSpan=4><B><FONT face=sans-serif size=1>Three months</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="13%" colSpan=4><B><FONT face=sans-serif size=1>Six months</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="9%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=1>ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="13%" colSpan=4><B><FONT face=sans-serif size=1>ended</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><I><FONT face=sans-serif size=1>(Unaudited)</FONT></I>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="9%" colSpan=4><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="13%" colSpan=4><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><I><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT></I>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2005</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>2006</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2005</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Operating activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net earnings</FONT>&nbsp; </TD>
     <TD align=right width="14%"><B><FONT face=sans-serif size=1>$</FONT></B> </TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>30.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>17.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>63.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>37.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Results of discontinued operations</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>0.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>0.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>0.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>0.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Earnings from continuing operations</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>31.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>17.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>64.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>38.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Adjustments to reconcile earnings to</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="49%"><FONT face=sans-serif size=1>cash flows from operating activities:</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Depreciation</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>13.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>12.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>26.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>26.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Amortization of deferred financing costs</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>0.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>1.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>0.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>1.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Amortization of intangible and other assets</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>3.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>7.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>7.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>10.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Future income taxes</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>6.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>6.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>12.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(4.7</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Investment tax credits</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(1.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(2.9</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(4.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(2.7</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Stock-based compensation plans</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>0.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>0.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>1.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>1.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Other</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>5.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>10.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>5.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Changes in non-cash working capital</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(16.0</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>8.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(43.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(0.8</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Net cash provided by continuing operating activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>43.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>53.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>75.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>75.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net cash (used in) provided by discontinued operating</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>activities</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(0.1</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Net cash provided by operating activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>43.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>53.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>75.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>77.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Investing activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Business acquisitions (net of cash and cash equivalents acquired)</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Proceeds from disposal of discontinued operations</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(6.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(6.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Capital expenditures</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(40.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(24.3</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(81.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(42.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Deferred development costs</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(0.2</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(0.2</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Deferred pre-operating costs</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>0.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(0.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(0.3</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Other assets</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>3.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(8.9</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(0.8</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(12.1</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net cash used in continuing investing activities</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(43.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(33.1</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(89.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(52.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net cash used in discontinued investing activities</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(6.1</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(7.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Net cash used in investing activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(43.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(39.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(89.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(59.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Financing activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net borrowing under revolving unsecured credit facilities</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>30.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(8.7</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>30.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>3.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Proceeds from long-term debt</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>14.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>21.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>24.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>21.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Reimbursement of long-term debt</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(4.0</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(4.3</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(7.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(28.7</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Dividends paid</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(2.5</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(2.4</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(4.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(4.8</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Common stock issuance</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>1.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>2.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>5.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Other</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(0.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(0.5</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>0.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(1.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net cash provided by (used in) continuing financing activities</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>38.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>8.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>45.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(4.4</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><FONT face=sans-serif size=1>Net cash provided by discontinued financing activities</FONT>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>0.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>1.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Net cash provided by (used in) financing activities</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>38.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>8.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>45.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(3.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Effect of foreign exchange rate changes</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=left width="1%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%"></TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%"></TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="49%"><B><FONT face=sans-serif size=1>on cash and cash equivalents</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>(0.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(5.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(1.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B>&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(7.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Net increase in cash and cash equivalents</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>38.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>17.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>29.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>8.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Cash and cash equivalents at beginning of period</FONT></B>&nbsp; </TD>
     <TD align=left width="14%"></TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>72.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="1%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>52.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>81.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>61.5</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="49%"><B><FONT face=sans-serif size=1>Cash and cash equivalents at end of period</FONT></B>&nbsp; </TD>
     <TD align=right width="14%"><FONT face=sans-serif size=1>$</FONT> </TD>
     <TD align=right width="1%"><B><FONT face=sans-serif size=1>110.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="1%"><B><FONT face=sans-serif size=1>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>69.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>$</FONT></B>&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>110.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=center width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>69.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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