Cubic's laser-based combat training system due for deployment to Air Force, DOE sites.

Cubic Defense Applications, the defense segment of San Diego-based Cubic Corp. (AMEX:CUB), has received a contract valued at approximately $5.2 million to provide its laser-based combat training system for use in facility protection and counterterrorism training exercises.

Cubic's equipment will be delivered next year to a Department of Energy site in the United States and to U.S. Air Force installations in the U.S. and overseas under a contract with the U.S. Army's Program Executive Office for Simulation, Training and Instrumentation (PEO STRI). PEO STRI acted as procurement agent for the Air Force in awarding the contract to Cubic under the Army's Military Operations on Urbanized Terrain (MOUT) program. The contract is an add-on to contracts Cubic previously received in 2001.

"Cubic has been working with the U.S. Air Force for some time to provide a laser-based combat training system that allows their security forces to engage in high-fidelity training involving small arms," said Jeff King, program manager for Cubic's Multiple Integrated Laser Engagement System (MILES). "This new contract is a continuation of those efforts."

King noted that an increasing number of U.S. military personnel around the world now have the opportunity to train with Cubic's MILES.

"This new contract is bound to generate more interest in our products, and we're very excited about adding the Department of Energy to our list of MILES users," King said. "Cubic would like to outfit every security force in the United States."

Under the new contract, Cubic's MILES is scheduled for delivery in summer 2003 to Kunsan Air Base in Korea; Kadena, Misawa, Osan and Yokota Air Bases in Japan; Anderson Air Force Base in Guam; and Ramstein Air Force Base in Germany. Cubic equipment will also be shipped during that time frame to these U.S. installations: Hickam Air Force Base in Hawaii, Eielson AFB in Alaska, Tinker AFB in Oklahoma, Camp Bullis in Texas, Hill AFB in Utah, McGuire AFB in New Jersey, USAF Security Police at various locations, the U.S. Army post at Fort Lewis, Wash., and one Department of Energy site.

Cubic's MILES system for small arms consists of laser transmitters that are mounted on actual weapons, helmets and vests equipped with laser detectors, and controller devices that allow data transfer for after-action review. Participants in training exercises use the weapon-mounted laser transmitters to fire eye-safe laser pulses during simulated battles. Manworn laser detectors record "hits," "misses" and "kills" and the controller gun downloads the action of the day to gauge how the participants performed.

Cubic previously received a total of $3.5 million from the MOUT program to outfit USAF personnel at 17 U.S. Air Force bases and one USAF base in Korea. This latest contract brings the total value of Cubic's participation under the MOUT procurement to approximately $8.7 million.

The Cubic Defense Applications Group, one of Cubic Corp.'s two major segments, 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.