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<SEC-DOCUMENT>0001173382-07-000020.txt : 20071108
<SEC-HEADER>0001173382-07-000020.hdr.sgml : 20071108
<ACCEPTANCE-DATETIME>20071108105757
ACCESSION NUMBER:		0001173382-07-000020
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070930
FILED AS OF DATE:		20071108
DATE AS OF CHANGE:		20071108

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:		071223945

	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>q26kpraug907.htm
<DESCRIPTION>2ND QUARTER 2008 PRESS RELEASE
<TEXT>

<HTML>
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   <TITLE>2008Q2Filing -- 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</FONT></B><BR>
<B><FONT face=serif>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 2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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; </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; </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="21%">&nbsp; </TD>
     <TD align=left width="21%" background=""></TD>
     <TD align=left width="15%" background="">&nbsp;</TD>
     <TD align=left width="43%" colSpan=2><B><FONT face=serif size=4>CAE Inc.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="21%"><FONT face=serif>Date: November 8, 2007</FONT> </TD>
     <TD align=left width="21%" background=""></TD>
     <TD align=left width="15%" background=""></TD>
     <TD align=left width="3%"><FONT face=serif>By:</FONT> </TD>
     <TD align=left width="40%"><FONT face=serif>/s/ Hartland Paterson</FONT> </TD></TR>
<TR>
     <TD width="60%" colSpan=4></TD>
     <TD width="40%">
<HR noShade SIZE=1>
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<TR vAlign=bottom>
     <TD align=left width="21%">&nbsp; </TD>
     <TD align=left width="21%" background=""></TD>
     <TD align=left width="15%" background=""></TD>
     <TD align=left width="3%"><FONT face=serif>Name:</FONT> </TD>
     <TD align=left width="40%"><FONT face=serif>Hartland J. Paterson</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="21%">&nbsp; </TD>
     <TD align=left width="21%" background=""></TD>
     <TD align=left width="15%" background=""></TD>
     <TD align=left width="3%"><FONT face=serif>Title:</FONT> </TD>
     <TD align=left width="40%"><FONT face=serif>Vice President Legal, General Counsel</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="21%">&nbsp; </TD>
     <TD align=left width="21%" background=""></TD>
     <TD align=left width="15%" background=""></TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="40%"><FONT face=serif>and Corporate Secretary</FONT> </TD></TR></TABLE><BR>
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<IMG src="q2fy08release7nov2007enx1x1.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; <B><FONT face=sans-serif size=5>Press Release</FONT></B>
<P align=left><B><FONT face=sans-serif size=4>CAE reports second quarter results for fiscal year 2008</FONT></B></P>
<UL>
<LI><B><FONT face=sans-serif size=2>Net earnings increased 25% year over year to CDN$38.9 million</FONT></B>
<LI><B><FONT face=sans-serif size=2>Revenue increased 26% year over year to CDN$353.9 million</FONT></B>
<LI><B><FONT face=sans-serif size=2>Net cash generated from continuing operations of CDN$97.7 million</FONT></B>
<LI><B><FONT face=sans-serif size=2>Free cash flow of CDN$27.1 million</FONT></B> </LI></UL>
<P align=left><B><I><FONT face=sans-serif size=2>Montreal, November 8, 2007 &#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, 2007. Net earnings were $38.9 million ($0.15 per share) this quarter, compared to $31.0 million ($0.12 per share) in the second quarter of last year. All financial information is in Canadian dollars. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="43%" colSpan=2><B><FONT face=sans-serif size=2>Summary of consolidated results</FONT></B> </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>(millions, except operating margins)</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q2-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q1-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q4-07</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q3-07</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>Q2-07</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Revenue</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>353.9</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>358.3</FONT> </TD>
     <TD align=center width="11%"><FONT face=sans-serif size=2>337.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>331.2</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>280.4</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Earnings before interest and</FONT> </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="11%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>income taxes (EBIT)</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>62.1</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>58.0</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>53.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>44.2</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>44.8</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><I><FONT face=sans-serif size=2>As a % of revenue</FONT></I> </TD>
     <TD align=left width="5%"><I><FONT face=sans-serif size=2>%</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>17.5</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>16.2</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>15.8</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>13.3</FONT></I> </TD>
     <TD align=right width="9%"><I><FONT face=sans-serif size=2>16.0</FONT></I> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Net earnings</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>38.9</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>38.7</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>34.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>29.7</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>31.0</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Backlog</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,513.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,599.5</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,774.6</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>2,711.9</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>2,584.0</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Consolidated revenue was $353.9 million, $73.5 million higher than in the second quarter of 2007.</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 $62.1 million, or 17.5% of revenue. EBIT increased 39% or $17.3 million year over year, as a result of higher segment operating income in our two Civil segments and in Simulation Products/Military. Excluding non-recurring items last year, EBIT increased by $15.6 million. </FONT></P>
<P align=left><FONT face=sans-serif size=2>&#147;We are continuing to benefit from strong market conditions and the successful execution of our strategy,&#148; said Robert E. Brown, CAE&#146;s President and Chief Executive Officer. &#147;Despite the rising Canadian dollar over the past three years, we have achieved greater profitability by lowering costs and becoming more efficient. We are accelerating initiatives to identify and capture additional savings.&#148;</FONT></P>
<P align=left><FONT face=sans-serif size=2>During the quarter we signed contracts for five civil full-flight simulators (FFSs). In addition, the Emirates-CAE Flight Training Centre committed to a Bombardier Global Express FFS and a CAE 5000 Series Hawker Beechcraft Hawker 800 XPi FFS. We have announced 21 FFS orders year to date, and, with the strong level of activity in the market, we believe the number of FFS orders could reach 34 by March 31, 2008.</FONT></P>
<P align=left><FONT face=sans-serif size=2>We secured more than $165 million in new training contracts in civil training and services, including a 15-year training centre operations services agreement with Air Canada. We also announced an expansion of our global training network to add into service 16 new business jet training programs over the next two years.</FONT></P>
<P align=right><FONT face=sans-serif size=2>1</FONT></P>
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<P align=left><FONT face=sans-serif size=2>We concluded a number of new contracts in the combined military segments, totalling $ 114 million this quarter, including the design and delivery of training systems and services to the United States Navy, Air Force and Marine Corps.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Since the end of the quarter, we announced that the Government of Canada has qualified the CAE-led team for the C-130J and CH-47 aircrew training capability. Public Works and Government Services Canada will release to CAE a request for proposal to acquire equipment and aircrew training services over 20 years for Canada&#146;s future tactical airlift aircraft and helicopter fleets.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="38%"><B><FONT face=sans-serif size=2>Business segment highlights</FONT></B> </TD>
     <TD align=left width="6%">&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="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><B><FONT face=sans-serif size=2>Simulation Products/Civil (SP/C)</FONT></B> </TD>
     <TD align=left width="6%">&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="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><B><FONT face=sans-serif size=2>Financial results</FONT></B> </TD>
     <TD align=left width="6%">&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="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>(millions, except operating margins)</FONT> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q2-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q1-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q4-07</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q3-07</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>Q2-07</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Revenue</FONT> </TD>
     <TD align=left width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>112.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>113.0</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>97.6</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>92.1</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>84.2</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Segment operating income</FONT> </TD>
     <TD align=left width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>26.2</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>19.7</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>15.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>15.5</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>18.7</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><I><FONT face=sans-serif size=2>Operating margins</FONT></I> </TD>
     <TD align=left width="6%"><I><FONT face=sans-serif size=2>%</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>23.3</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>17.4</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>15.7</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>16.8</FONT></I> </TD>
     <TD align=right width="8%"><I><FONT face=sans-serif size=2>22.2</FONT></I> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="38%"><FONT face=sans-serif size=2>Backlog</FONT> </TD>
     <TD align=left width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>373.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>413.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>352.8</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>340.0</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>313.2</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Revenue in the SP/C segment was $112.3 million this quarter, up by 33% over the same period last year. Revenue increased as a result of higher orders and revenue recorded on simulators that were being manufactured for which we got contracts during the quarter.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Segment operating income was $26.2 million, up by 40% over the same period last year. This increase is mainly due to higher revenue this quarter, improved program performance and a more favourable mix.</FONT></P>
<P align=left><FONT face=sans-serif size=2>New orders totalled $74.3 million, and segment backlog was $373.3 million at the end of the quarter.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="37%"><B><FONT face=sans-serif size=2>Training &amp; Services/Civil (TS/C)</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="37%"><B><FONT face=sans-serif size=2>Financial results</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="37%"><FONT face=sans-serif size=2>(millions, except operating margins)</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q2-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q1-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q4-07</FONT> </TD>
     <TD align=right width="12%"><FONT face=sans-serif size=2>Q3-07</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>Q2-07</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="37%"><FONT face=sans-serif size=2>Revenue</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>90.0</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>94.8</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>91.7</FONT> </TD>
     <TD align=right width="12%"><FONT face=sans-serif size=2>83.1</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>78.4</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="37%"><FONT face=sans-serif size=2>Segment operating income</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>14.6</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>19.6</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>21.3</FONT> </TD>
     <TD align=right width="12%"><FONT face=sans-serif size=2>13.5</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>11.2</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="37%"><I><FONT face=sans-serif size=2>Operating margins</FONT></I> </TD>
     <TD align=left width="5%"><I><FONT face=sans-serif size=2>%</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>16.2</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>20.7</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>23.2</FONT></I> </TD>
     <TD align=right width="12%"><I><FONT face=sans-serif size=2>16.2</FONT></I> </TD>
     <TD align=right width="9%"><I><FONT face=sans-serif size=2>14.3</FONT></I> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="37%"><FONT face=sans-serif size=2>Backlog</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>887.5</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>853.4</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>951.6</FONT> </TD>
     <TD align=right width="12%"><FONT face=sans-serif size=2>905.6</FONT> </TD>
     <TD align=right width="9%"><FONT face=sans-serif size=2>842.9</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Revenue in the TS/C segment increased 15% year over year as a result of continued strong demand in most of our training centres and the addition of seven Revenue Simulator Equivalent Units (RSEUs) to our global network.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Segment operating income was $14.6 million (16.2% of revenue), up by 30% from last year. While our civil training business showed increased operational strength, margins in the quarter were impacted by costs associated with the expansion of our network and the ramp-up of new training programs.</FONT></P>
<P align=left><FONT face=sans-serif size=2>New orders exceeded $165 million, and segment backlog was $887.5 million at the end of the quarter. </FONT></P>
<P align=right><FONT face=sans-serif size=2>2</FONT></P>
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<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="40%"><B><FONT face=sans-serif size=2>Simulation Products/Military (SP/M)</FONT></B> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="40%"><B><FONT face=sans-serif size=2>Financial results</FONT></B> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="40%"><FONT face=sans-serif size=2>(millions, except operating margins)</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q2-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q1-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q4-07</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q3-07</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>Q2-07</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="40%"><FONT face=sans-serif size=2>Revenue</FONT> </TD>
     <TD align=left width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>97.1</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>95.5</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>92.2</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>105.2</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>64.3</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="40%"><FONT face=sans-serif size=2>Segment operating income</FONT> </TD>
     <TD align=left width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>13.4</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>12.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>9.5</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>11.2</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>7.3</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="40%"><I><FONT face=sans-serif size=2>Operating margins</FONT></I> </TD>
     <TD align=left width="4%"><I><FONT face=sans-serif size=2>%</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>13.8</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>12.9</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>10.3</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>10.6</FONT></I> </TD>
     <TD align=right width="8%"><I><FONT face=sans-serif size=2>11.4</FONT></I> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="40%"><FONT face=sans-serif size=2>Backlog</FONT> </TD>
     <TD align=left width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>535.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>560.5</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>635.8</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>609.0</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>626.3</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Revenue in the SP/M segment was $97.1 million this quarter, up by 51% over the same period last year as a result of higher activity on some U.S. and U.K. programs as well as the integration into our results of Engenuity and Multigen Paradigm. These increases were partly offset by the appreciation of the Canadian dollar against the U.S. dollar.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Segment operating income this quarter was $13.4 million, up 84% year over year. The increase follows higher revenues related to the achievement of some significant milestones on some U.S. and U.K. programs.</FONT><I><FONT face=sans-serif size=2> </FONT></I></P>
<P align=left><FONT face=sans-serif size=2>New orders totalled $84.6 million, and segment backlog was $535.3 million at the end of the quarter. We expect variations in the level of order bookings between quarters in both Military segments because of the unique nature of military contracts and the irregular timing in which they are awarded.</FONT><B><FONT face=sans-serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="39%"><B><FONT face=sans-serif size=2>Training &amp; Services/Military (TS/M)</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><B><FONT face=sans-serif size=2>Financial results</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="11%">&nbsp; </TD>
     <TD align=left width="8%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>(millions, except operating margins)</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q2-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q1-08</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q4-07</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>Q3-07</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>Q2-07</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>Revenue</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>54.5</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>55.0</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>55.8</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>50.8</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>53.5</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>Segment operating income</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>7.9</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>6.4</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>6.1</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>6.8</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>9.3</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><I><FONT face=sans-serif size=2>Operating margins</FONT></I> </TD>
     <TD align=left width="5%"><I><FONT face=sans-serif size=2>%</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>14.5</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>11.6</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>10.9</FONT></I> </TD>
     <TD align=right width="11%"><I><FONT face=sans-serif size=2>13.4</FONT></I> </TD>
     <TD align=right width="8%"><I><FONT face=sans-serif size=2>17.4</FONT></I> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="39%"><FONT face=sans-serif size=2>Backlog</FONT> </TD>
     <TD align=left width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>717.2</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>772.3</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>834.4</FONT> </TD>
     <TD align=right width="11%"><FONT face=sans-serif size=2>857.3</FONT> </TD>
     <TD align=right width="8%"><FONT face=sans-serif size=2>801.6</FONT> </TD></TR>
<TR>
     <TD width="96%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Revenue in the TS/M segment was $54.5 million, up by 2% from last year. The foreign exchange impact was offset by the integration of the recent acquisitions of Engenuity and Kesem.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Segment operating income was $7.9 million, down by 15% over the same period last year. This decrease is mainly because the prior year included higher labour rate adjustments related to U.S. military contracts. This decrease was partially offset by a bi-annual dividend received this quarter from an investment in the U.K. </FONT></P>
<P align=left><FONT face=sans-serif size=2>New orders totalled $29.4 million this quarter, and segment backlog was $717.2 million at the end of the quarter.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Combined revenue this quarter for the Military business as a whole was $151.6 million and combined operating income was $21.3 million, resulting in an operating margin of 14.1% .</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 $97.7</FONT><B><FONT face=sans-serif size=2> </FONT></B><FONT face=sans-serif size=2>million of net cash from continuing operations. We invested $87.4 million in capital expenditures, and received $25.2 million in non-recourse financing. As a result, we generated free cash flow</FONT><SUP><FONT face=sans-serif size=2>(2)</FONT></SUP><FONT face=sans-serif size=2> of $27.1 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 $218.6 million for the quarter, down by 1% from last quarter. </FONT></P>
<P align=right><FONT face=sans-serif size=2>3</FONT></P>
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<P align=left><FONT face=sans-serif size=2>CAE will pay a dividend of $0.01 per share on December 31, 2007 to shareholders of record on December 14, 2007. </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 was $2.513 billion at the end of this quarter, compared to $2.599 billion at the end of last quarter. New orders of $353.8 million were added to backlog this quarter, while negative foreign exchange movements reduced the Canadian dollar value of the backlog by $86.1 million. The net increase was more than offset by $353.9 million of revenues generated from backlog.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Income taxes were $17.7 million this quarter, representing an effective tax rate of 31%. We expect the effective income tax rate for fiscal 2008 to be approximately 30%.</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) as well as in our consolidated financial statements which are posted on our website at </FONT><U><FONT face=sans-serif color=#0000ff size=2>www.cae.com/financialsQ2FY08.</FONT></U></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 noon EST for analysts, institutional investors and the media. North American participants can listen to the conference by dialing 1-866-540-8136 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 solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1 billion, CAE employs approximately 6,000 people at more than 75 sites and training locations in 20 countries. We have the largest installed base of civil and military full-flight simulators and training devices. More than 75,000 crewmembers train yearly in our global network of 27 civil aviation and military training centres. We also offer modelling and simulation software to various market segments and through CAE&#146;s professional services division, we assist 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, 2007. 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>), on SEDAR (</FONT><U><FONT face=sans-serif color=#0000ff size=2>www.sedar.com</FONT></U><FONT face=sans-serif size=2>) and a free copy is available upon request to CAE. They have also been filed with the U.S. 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 8, 2007 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=right><FONT face=sans-serif size=2>4</FONT></P>
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<P align=left><B><FONT face=sans-serif size=2>Notes</FONT></B></P>
<P align=left><SUP><FONT face=sans-serif size=2>(1)</FONT></SUP><FONT face=sans-serif size=2> Earnings before interest and taxes (EBIT) is a non-GAAP measure that shows us how we have performed before the effects of certain financing decisions and tax structures. We track EBIT because we believe it makes it easier to compare our performance with previous periods, and with companies and industries that do not have the same capital structure or tax laws. </FONT></P>
<P align=left><SUP><FONT face=sans-serif size=2>(2)</FONT></SUP><B><FONT face=sans-serif size=2> </FONT></B><FONT face=sans-serif size=2>Free cash flow is a non-GAAP measure that tells us how much cash we have available to build the business, repay debt and meet ongoing financial 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 all capital expenditures (including growth capital expenditures and capitalized costs) and dividends paid, and then adding the proceeds from sale and leaseback arrangements and other asset-specific financing (including non-recourse debt). Dividends are deducted in the calculation of free cash flow because we consider them an obligation, like interest on debt, which means that amount is not available for other uses. </FONT></P>
<P align=left><SUP><FONT face=sans-serif size=2>(3)</FONT></SUP><FONT face=sans-serif size=2> Net debt is a non-GAAP measure we use to monitor how much debt we have after taking into account liquid assets such as cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt (debt that matures in more than one year), including the current portion, and subtracting cash and cash equivalents.</FONT></P>
<P align=center><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, Public Affairs and Global Communications, (514) 734-5788, </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, Vice President, Investor Relations and Strategy, (514) 734-5760, </FONT><U><FONT face=sans-serif color=#0000ff size=2>andrew.arnovitz@cae.com</FONT></U></P>
<P align=right><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="46%"><FONT face=sans-serif color=#0000ff size=4>Consolidated Balance Sheets</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=1>(Unaudited)</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=1>As at September 30</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><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="46%"><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=1>2007</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><B><FONT face=sans-serif color=#0000ff size=2>Assets</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><I><FONT face=sans-serif size=2>Current assets</FONT></I> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Cash and cash equivalents</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>144.3</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>150.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Accounts receivable</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>261.7</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>219.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Inventories</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>197.7</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>203.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Prepaid expenses</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>21.8</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>23.5</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Income taxes recoverable</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>31.7</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>24.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Future income taxes</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>4.5</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>3.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>661.7</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>625.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Property, plant and equipment, net</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>948.9</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>986.6</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Future income taxes</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>79.5</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>81.5</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Intangible assets</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>59.5</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>36.0</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Goodwill</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>112.1</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>96.9</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Other assets</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>144.2</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>129.5</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>2,005.9</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>1,956.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><B><FONT face=sans-serif color=#0000ff size=2>Liabilities and Shareholders&#146; Equity</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><I><FONT face=sans-serif size=2>Current liabilities</FONT></I> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Accounts payable and accrued liabilities</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>380.4</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>403.9</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Deposits on contracts</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>183.3</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>184.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Current portion of long-term debt</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>25.5</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>27.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Future income taxes</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>7.8</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>4.9</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>597.0</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>620.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Long-term debt</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>337.4</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>256.0</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Deferred gains and other long-term liabilities</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>209.5</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>232.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Future income taxes</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>31.6</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>16.8</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>1,175.5</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>1,126.3</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><B><FONT face=sans-serif color=#0000ff size=2>Shareholders&#146; Equity</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="15%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Capital stock</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>417.4</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>401.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Contributed surplus</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>5.6</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>5.7</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Retained earnings</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>574.4</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>510.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%"><FONT face=sans-serif size=2>Accumulated other comprehensive loss</FONT> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>(167.0</FONT></B> </TD>
     <TD align=left width="13%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>(87.7</FONT> </TD>
     <TD align=left width="3%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>830.4</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>829.9</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="46%">&nbsp; </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="15%"><B><FONT face=sans-serif size=2>2,005.9</FONT></B> </TD>
     <TD align=left width="13%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="15%"><FONT face=sans-serif size=2>1,956.2</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=7>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=right><FONT face=sans-serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_7"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Earnings</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="16%" 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="5%">&nbsp; </TD>
     <TD align=right width="13%" colSpan=4><B><FONT face=sans-serif size=1>Six months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=1>(Unaudited)</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="10%" colSpan=2><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%">&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="50%"><FONT face=sans-serif size=1>((amounts in millions of Canadian dollars, except per share amounts)</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2006</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=1>2006</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="50%"><FONT face=sans-serif size=2>Revenue</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>353.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>280.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>712.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>582.2</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="50%"><FONT face=sans-serif size=2>Earnings before interest and income taxes</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>62.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>44.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>120.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>91.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Interest expense, net</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>5.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>1.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>8.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>4.2</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="50%"><FONT face=sans-serif size=2>Earnings before income taxes</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>56.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>43.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>112.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>87.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Income tax expense</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>17.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>12.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>34.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>23.4</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="50%"><FONT face=sans-serif size=2>Earnings from continuing operations</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>39.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>31.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>77.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>64.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Results of discontinued operations</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(0.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>(0.3</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(0.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>(0.9</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><B><FONT face=sans-serif size=2>Net earnings</FONT></B> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>38.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>31.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>77.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>63.4</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="50%"><B><U><FONT face=sans-serif size=2>Basic earnings per share from continuing operations</FONT></U></B> </TD>
     <TD align=right width="3%"><B><U><FONT face=sans-serif size=2>$</FONT></U></B> </TD>
     <TD align=right width="4%"><B><U><FONT face=sans-serif size=2>0.15</FONT></U></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><U><FONT face=sans-serif size=2>$</FONT></U> </TD>
     <TD align=right width="5%"><U><FONT face=sans-serif size=2>0.12</FONT></U> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><U><FONT face=sans-serif size=2>$</FONT></U></B> </TD>
     <TD align=right width="4%"><B><U><FONT face=sans-serif size=2>0.31</FONT></U></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><U><FONT face=sans-serif size=2>$</FONT></U> </TD>
     <TD align=right width="3%"><U><FONT face=sans-serif size=2>0.26</FONT></U> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><B><FONT face=sans-serif size=2>Diluted earnings per share from continuing</FONT></B> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><B><FONT face=sans-serif size=2>operations</FONT></B> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>0.15</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>0.12</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>0.31</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>0.25</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="50%"><B><FONT face=sans-serif size=2>Basic and diluted earnings per share</FONT></B> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>0.15</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>0.12</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>0.31</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>0.25</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="50%"><FONT face=sans-serif size=2>Weighted average number of shares outstanding (Basic)</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>253.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>251.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>253.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>250.9</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="50%"><FONT face=sans-serif size=2>Weighted average number of shares outstanding (Diluted)</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>254.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>252.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>254.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>252.8</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="53%" colSpan=2><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Retained Earnings</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="16%" colSpan=4><B><FONT face=sans-serif size=1>Three months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="13%" colSpan=4><B><FONT face=sans-serif size=1>Six months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=1>(Unaudited)</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="10%" colSpan=2><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&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="50%"><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2006</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=1>2006</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="50%"><FONT face=sans-serif size=2>Retained earnings at beginning of period</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>538.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>422.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>510.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>392.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Transition adjustments &#150; Financial instruments</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(8.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Net earnings</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>38.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>31.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>77.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>63.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Dividends</FONT> </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(2.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=right width="5%">&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> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(5.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>(5.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR>
     <TD width="91%" colSpan=13>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="50%"><FONT face=sans-serif size=2>Retained earnings at end of period</FONT> </TD>
     <TD align=right width="3%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>574.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=2>451.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>574.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>451.2</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=right><FONT face=sans-serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_8"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="58%" colSpan=3><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Comprehensive Income</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="16%" colSpan=4><B><FONT face=sans-serif size=1>Three months ended</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="15%" colSpan=4><B><FONT face=sans-serif size=1>Six months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%"><FONT face=sans-serif size=1>(Unaudited)</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="10%" colSpan=2><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="9%" colSpan=2><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="42%"><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2006</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=1>2006</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%"><B><FONT face=sans-serif size=2>Net earnings</FONT></B> </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>38.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>31.0</FONT> </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>77.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>63.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2><FONT face=sans-serif size=2>Other comprehensive income (loss), net of income</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%"><FONT face=sans-serif size=2>taxes:</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>Foreign Currency Translation Adjustment</FONT></B> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2><FONT face=sans-serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange gains (losses) on translating</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2><FONT face=sans-serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financial statements of self-sustaining foreign</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>operations</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(43.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>0.7</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(110.6</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>(16.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2><FONT face=sans-serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in gains on certain long-term debt</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>denominated in foreign currency</FONT> <FONT face=sans-serif size=2>and</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2><FONT face=sans-serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; designated as hedges on net investments of</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>self-sustaining foreign operations</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>6.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>14.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>5.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Income tax adjustment</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>0.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>0.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>(0.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(36.4</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>0.7</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(95.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>(10.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>Net Changes in Cash Flow Hedge</FONT></B> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="54%" colSpan=2><FONT face=sans-serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in gains on derivative items designated</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>as hedges of cash flows</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>10.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>28.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>Income tax adjustment</FONT> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(3.5</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(9.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%">&nbsp; </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>7.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>19.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="42%">
<HR noShade SIZE=1>
</TD>
     <TD width="18%" colSpan=3>
<HR noShade SIZE=2>
</TD>
     <TD width="6%">
<HR noShade SIZE=1>
</TD>
     <TD width="26%" colSpan=7>
<HR noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%"><B><FONT face=sans-serif size=2>Total other comprehensive (loss) income</FONT></B> </TD>
     <TD align=left width="12%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(29.4</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>0.7</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>(75.8</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=2>)</FONT></B> </TD>
     <TD align=left width="6%">&nbsp; </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>(10.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=2>)</FONT> </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="42%"><B><FONT face=sans-serif size=2>Comprehensive income</FONT></B> </TD>
     <TD align=right width="12%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>9.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=2>31.7</FONT> </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=2>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=2>1.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="6%"><FONT face=sans-serif size=2>$</FONT> </TD>
     <TD align=right width="3%"><FONT face=sans-serif size=2>52.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=12>
<HR noShade SIZE=2>
</TD></TR></TABLE><BR>
<P align=right><FONT face=sans-serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_9"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><FONT face=sans-serif color=#0000ff size=4>Consolidated Statements of Cash Flows</FONT> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="7%" colSpan=2><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="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="17%" colSpan=4><B><FONT face=sans-serif size=1>Three months ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>ended</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="17%" colSpan=4><B><FONT face=sans-serif size=1>September 30</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="9%" colSpan=2><FONT face=sans-serif size=1>(Unaudited)</FONT> </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&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="25%" colSpan=4><FONT face=sans-serif size=1>(amounts in millions of Canadian dollars)</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>2007</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>2006</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>2007</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>2006</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3><B><FONT face=sans-serif size=1>Operating activities</FONT></B> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=left width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="9%" colSpan=2><FONT face=sans-serif size=1>Net earnings</FONT> </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%"><B><FONT face=sans-serif size=1>$</FONT></B> </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>38.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>31.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>77.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp;<FONT face=sans-serif size=1>$</FONT> </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>63.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><FONT face=sans-serif size=1>Results of discontinued operations</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>0.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>0.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>0.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>0.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><FONT face=sans-serif size=1>Earnings from continuing operations</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>39.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>31.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>77.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>64.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="92%" colSpan=18><FONT face=sans-serif size=1>Adjustments</FONT>&nbsp;<FONT face=sans-serif size=1>to</FONT>&nbsp;<FONT face=sans-serif size=1>reconcile</FONT> <FONT face=sans-serif size=1>earnings</FONT>&nbsp;<FONT face=sans-serif size=1>to</FONT> &nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp;<FONT face=sans-serif size=1>cash flows from operating activities:</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Depreciation</FONT> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>15.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>13.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>30.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>26.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Financing cost amortization</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>0.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>0.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>0.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>0.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Amortization and write down of intangible and other</FONT> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="9%" colSpan=2><FONT face=sans-serif size=1>assets</FONT> </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>4.6</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>3.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>8.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>7.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Future income taxes</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>5.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>6.4</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>10.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>12.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Investment tax credits</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>3.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(1.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>7.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(4.1</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Stock-based compensation plans</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>1.8</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>4.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(1.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>8.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Employee future benefits, net</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&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> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(0.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><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> </TD>
     <TD align=right width="3%">&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> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="9%" colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Other</FONT> </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(5.2</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&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=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>1.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>1.5</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="30%" colSpan=5>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Changes in non-cash working capital</FONT> </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>32.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(16.8</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(65.2</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(44.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="30%" colSpan=5><B><FONT face=sans-serif size=1>Net cash provided by operating activities</FONT></B> </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>97.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>41.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>69.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>71.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3><B><FONT face=sans-serif size=1>Investing activities</FONT></B> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><FONT face=sans-serif size=1>Business acquisitions (net of cash and cash equivalents acquired)</FONT> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(1.8</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(40.7</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&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="47%" colSpan=6><FONT face=sans-serif size=1>Proceeds from disposal of discontinued operations</FONT> </TD>
     <TD align=right width="7%">&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=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(6.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>-</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(6.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3><FONT face=sans-serif size=1>Capital expenditures</FONT> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(87.4</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(40.9</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(120.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(81.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><FONT face=sans-serif size=1>Deferred development costs</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&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> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(0.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(9.7</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(0.2</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><FONT face=sans-serif size=1>Deferred pre-operating costs</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&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> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(0.4</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(0.1</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="5%"><FONT face=sans-serif size=1>Other</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(0.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>6.2</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(3.4</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>3.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><B><FONT face=sans-serif size=1>Net cash used in investing activities</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(95.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(41.5</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(174.3</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(84.8</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3><B><FONT face=sans-serif size=1>Financing activities</FONT></B> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><FONT face=sans-serif size=1>Net borrowing under revolving unsecured credit facilities</FONT> </TD>
     <TD align=right width="7%">&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=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>30.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>15.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>30.0</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><FONT face=sans-serif size=1>Proceeds from long-term debt, net of transaction costs and</FONT> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>debt basis adjustment</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>25.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>14.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>109.4</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>24.5</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><FONT face=sans-serif size=1>Reimbursement of long-term debt</FONT> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(12.1</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(4.0</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(16.4</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(7.6</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3><FONT face=sans-serif size=1>Dividends paid</FONT> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><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> </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(2.5</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><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> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(4.9</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="16%" colSpan=3><FONT face=sans-serif size=1>Common stock issuance</FONT> </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>1.9</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>1.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>13.5</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>2.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="5%"><FONT face=sans-serif size=1>Other</FONT> </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="7%">&nbsp; </TD>
     <TD align=left width="9%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>0.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>(0.3</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(4.5</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>0.6</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="30%" colSpan=5><B><FONT face=sans-serif size=1>Net cash provided by financing activities</FONT></B> </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>12.7</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>38.9</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>112.1</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>45.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><B><FONT face=sans-serif size=1>Effect</FONT></B> <B><FONT face=sans-serif size=1>of</FONT></B> <B><FONT face=sans-serif size=1>foreign</FONT></B> <B><FONT face=sans-serif size=1>exchange</FONT></B> <B><FONT face=sans-serif size=1>rate</FONT></B> <B><FONT face=sans-serif size=1>changes</FONT></B> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="25%" colSpan=4><B><FONT face=sans-serif size=1>&nbsp;&nbsp; on cash and cash equivalents</FONT></B> </TD>
     <TD align=left width="5%">&nbsp; </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>(6.0</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="5%">&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> </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(12.7</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>(1.9</FONT> </TD>
     <TD align=left width="2%"><FONT face=sans-serif size=1>)</FONT> </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><B><FONT face=sans-serif size=1>Net increase (decrease) in cash and cash equivalents</FONT></B> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>9.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>38.5</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>(5.9</FONT></B> </TD>
     <TD align=left width="2%"><B><FONT face=sans-serif size=1>)</FONT></B> </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>29.7</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="47%" colSpan=6><B><FONT face=sans-serif size=1>Cash and cash equivalents at beginning of period</FONT></B> </TD>
     <TD align=right width="7%">&nbsp; </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>135.0</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>72.3</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>150.2</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp; </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>81.1</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD align=left width="30%" colSpan=5><B><FONT face=sans-serif size=1>Cash and cash equivalents at end of period</FONT></B> </TD>
     <TD align=left width="17%">&nbsp; </TD>
     <TD align=right width="7%"><B><FONT face=sans-serif size=1>$</FONT></B> </TD>
     <TD align=right width="5%"><B><FONT face=sans-serif size=1>144.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>$</FONT> </TD>
     <TD align=right width="5%"><FONT face=sans-serif size=1>110.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>$</FONT></B> </TD>
     <TD align=right width="4%"><B><FONT face=sans-serif size=1>144.3</FONT></B> </TD>
     <TD align=left width="2%">&nbsp; </TD>
     <TD align=right width="3%">&nbsp;<FONT face=sans-serif size=1>$</FONT> </TD>
     <TD align=right width="4%"><FONT face=sans-serif size=1>110.8</FONT> </TD>
     <TD align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="92%" colSpan=18>
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=right><FONT face=sans-serif size=2>9</FONT></P>
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