© Copyright 2004 Frost & Sullivan. All Rights Reserved. North American Military and Commercial Flight Simulation Markets Safety-Conscious Federal Agencies Drive Flight Simulation Industry Aerospace and Defense Group “By recognizing the importance of simulator training and encouraging it, the FAA has strengthened the position of the commercial simulator sector and helped it become an inevitable step on the path to certification for all pilots.”

© Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends Independent and privately-owned simulator training centers growing in number Outsourced training driving market growth Industry consolidation continues but U.S. small business preference helps small participants Computer-based training and FTDs gaining popularity Traditional commercial air travel companies suffer while no-frills travel and business travel fare better in spite of industry slowdown Simulator manufacturers teaming up with aircraft makers

© Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, and challenges Pricing and technology trends Market sizing and competitive analysis Market forecasts

© Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: The United States, Canada Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

© Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants  Manufacturers can assess their situation in comparison with the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities or new alliances  End users can plan their acquisition and procurement schedule based on technology and pricing trends New Entrants  Analyze challenges associated with the industry  Calculate time scales for strategy implementation  Position yourself to capitalize on the market’s unmet needs Investment Community  Analyze long-term strategies of aviation and flight simulation companies  Determine which participants will outperform the competition  Assess attractiveness of investing in the flight simulation market

© Copyright 2004 Frost & Sullivan. All Rights Reserved. What’s Included Commercial Flight Simulator Market Military Flight Simulator Market FFS, FTDs, PC-based Applications End-user Trends Pricing Trends

© Copyright 2004 Frost & Sullivan. All Rights Reserved.  Advanced Simulation Corp.  Advanced Simulation Systems, Inc.  Aerosim Technologies, Inc.  Atlantis Systems Corp.  BAE Systems  Boeing Training Systems and Support  CACI International, Inc.  CAE USA  Camber Corp.  Computer Sciences Corp.  Cubic Simulation Systems  FlightSafety International  FLYIT Simulators  Frasca International, Inc. Key Market Participants  Karta Technologies, Inc.  L-3 Communications Link Simulation & Training  Lockheed Martin  NLX Corp.  Northrop Grumman Corp.  SAIC  SDS International, Inc.  SGI, Inc.  Simgraph, Inc.  SYTRONICS, Inc.  Thales Training and Simulation, Inc.  Vector Training Systems, Inc.  Wicat Systems, Inc.

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