Brazilian Army Troops to Train With Cubic's Laser-Based MILES 2000 Combat Training System.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Sept. 3, 2002

Brazilian Army troops will soon be able to train with MILES 2000, a sophisticated laser-based ground combat training system used by the U.S. military. Cubic Defense Applications group, the defense segment of San Diego-based Cubic Corp. (AMEX:CUB), announced it will provide the system to Brazil under a recently signed contract.

MILES 2000 -- which stands for Multiple Integrated Laser Engagement System -- allows military commanders to conduct force-on-force exercises in which the actions of participants, weapons and vehicles are tracked and recorded for after-action review. It uses devices mounted on actual weapons that fire eye-safe laser pulses, which replicate the range and accuracy of the weapons.

Ray Barker, senior vice president of Cubic's Business Development division, said the new contract is the first sale of MILES 2000 to a South American country and is another endorsement of the worldwide appeal of the MILES 2000 system.

"Doing business with Brazil gives Cubic a foothold in an important new market," Barker said. "We are already working on Brazil's equipment and expect to ship the entire order within eight months. We see a bright future for Cubic in Latin America."

Under the contract, Cubic will supply a small quantity of infantry rifle kits, controller devices for tracking and analyzing performance, and Individual Weapons Systems -- manworn vests containing laser-sensitive detector devices that monitor "hits" during the course of the exercise.

Cubic recently shipped a large order of MILES equipment to the U.S. Army installation at Fort Lewis, Wash., and trained soldiers there in how to operate the equipment. Cubic has previously delivered MILES 2000 systems to the U.S. Army at Fort Stewart, Ga.; Marine Corps Base Camp Pendleton, Calif.; several U.S. Air Force bases; the Kuwait Land Forces and the Royal Netherlands Marine Corps.

The Cubic Defense Applications group, manufacturer of MILES 2000, is one of Cubic's two major segments. The group produces instrumented air and ground combat training systems, battle command training, simulations and simulation support for U.S. and allied military forces. The group also produces high technology avionics, data links and communications products for government and commercial customers, and a wide range of technical and logistics services.

The corporation's other major segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com