Cubic's OSCMAR Subsidiary to Provide Urban Combat Training Equipment to Royal Netherlands Army.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--April 10, 2003

Oscmar International Ltd., part of the defense segment of San Diego-based Cubic Corp. (AMEX:CUB), will provide laser-based training equipment for the Royal Netherlands Army's (RNLA) new urban training village in Lauwersmeer.

Under the initial agreement, Oscmar will supply and maintain infantry, vehicle and anti-armor MILES products for the Military Operations on Urban Terrain (MOUT) village over a two-year period. The contract includes an option to extend for an additional two years.

"It is obvious from the conflict in Iraq that 'fighting in built-up areas' or FIBUA is an area of military operations that will play an ever-increasing role of importance in today's battlefield, and we intend to be at the forefront in terms of delivering high-tech training solutions," said Oscmar Managing Director Tom Scott. "We are delighted to have the opportunity to supply equipment and work with the RNLA to develop further capability for future MOUT products."

Cubic's Oscmar unit will work closely with the RNLA using the Lauwersmeer facility as a proving and testing ground for products to be developed specifically for use in FIBUA training.

Scott considers this initial contract to be a significant award that strengthens Cubic's position in Europe as a key supplier of FIBUA/MOUT training equipment.

"The award is also an endorsement of the Royal Netherlands Army's confidence in the company," Scott said. "Oscmar also won a contract from RNLA in 1999 to supply MILES equipment for Home Base Training under a similar agreement."

A member of the Cubic Defense Applications group, New Zealand-based Oscmar International Ltd. develops and manufactures precision instruments that are used for simulation systems, instrumentation and control equipment, and monitoring defense training performance. Cubic Defense Applications, one of Cubic's two major segments, provides realistic combat training systems for military forces as well as simulation, force modernization, educational services, operations & maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue avionics and radio communications for military and civil markets. 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