Cubic's Oscmar Unit Awarded $46.6 Million Contract to Provide Australia's First Transportable Combat Training System.

Business Editors/Defense Writers

SAN DIEGO--(BUSINESS WIRE)--Jan. 31, 2003

Cubic Subsidiary to Enhance Combat Readiness of Australian Army 

Oscmar International Ltd., a subsidiary of Cubic Corp. (AMEX:CUB), has won a $US46.6 million (AU$79 million) contract to provide the first transportable combat training system for the Australian Armed Forces.

The contract was awarded today by the Australian Department of Defence, Defence Materiel Organization.

Oscmar, in partnership with Cubic's Training System Division, will provide live simulation equipment, range instrumentation and information systems for the "Land 134" project, a company-level instrumented Combat Training Center (CTC). Australian industry will provide extensive, seven-year contractor support following system delivery and acceptance in 2005-2006.

The advanced equipment will allow soldiers to cost-effectively train with advanced laser-based simulation and tracking technologies in the remotest areas throughout Australia.

The Oscmar-Cubic equipment will provide range-instrumentation, position-location and communication networks for the CTC. These systems collect and analyze data in real-time from all exercise participants, and provide the multimedia tools needed for CTC staff to provide immediate feedback after the exercise.

"This key win validates our strategy of blending the strengths of all our operating units to bring the best result to the customer," said Gerald Dinkel, president and CEO of the Cubic Defense Applications group.

Oscmar, the prime contractor and systems integrator, will supply its Multiple Integrated Laser Engagement System (MILES) for individual soldiers, tanks and combat vehicles. The laser-based training system will be mounted on a variety of weapons, ranging from assault rifles to main battle tanks and infantry fighting vehicles. Oscmar will also provide communications systems, such as soldier radios that track their position, as well as simulation of direct and indirect fire weapon effects in the live domain.

Cubic's Training Systems Division will supply its PC-based Range Instrumentation System (PC-RIS). PC-RIS allows observer/controllers to use personal computers to create exercise scenarios, monitor the position-location of the players and record the battlefield events for multimedia After-Action Reviews.

New Zealand-based Oscmar has produced more than 70,000 simulators that serve 17 countries worldwide. The company was recently awarded a US$10 million contract to supply its MILES tactical simulators to allied military forces in the Asia-Pacific Region.

In addition to MILES products, Oscmar develops mobile combat training centers, simulated hand grenades and claymore mines and urban training products for soldiers. The company became part of the Cubic Defense Applications group in 2000.

The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces, including MILES 2000, as well 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.