Cubic Applications Inc. Wins $63M Contract for Joint Warfighting Center Training Support.

Business Editors and High-Tech Writers

SAN DIEGO & LACEY, Wash.--(BUSINESS WIRE)--Dec. 18, 2001

Cubic Applications Inc., a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has received a contract with a potential value of $63 million to provide technical and general services for the United States Joint Forces Command Joint Warfighting Center (JFWC) in Suffolk, Va.

The award, a subcontract from TRW Inc., is a follow-on to a five-year, cost-plus-award-fee contract that the U.S. Army Training and Doctrine Command (TRADOC) awarded in 1997.

"This is a significant win for CAI, as U.S. Joint Forces Command work represents a major piece of our base business," said Jack Walker, CAI's president and chief executive officer. "Furthermore, its evolution from inception to one of our largest contracts makes this award particularly important to our future growth."

"We recognized the benefit of joining forces with TRW, the Joint Forces Command's other prime contractor, to compete for this new support contract. By mutual agreement, CAI became TRW's major subcontractor and partner," Walker said.

Today CAI has approximately 160 employees providing development, production and assessment support for design, development, planning, preparation and execution of joint and combined exercises. CAI has responsibility for joint training, joint doctrine, modeling and simulation-related missions, and hardware/software requirements. CAI directly supports the operational and technical requirements of the Joint Staff, Commanders in Chief, and is responsible for development, management and implementation of all phases of the Joint Training System. CAI also provides doctrine and simulation development, leadership education and training, exercise planning and execution, and armed forces restructuring support.

CAI is part of the Cubic Defense Group. In addition to providing battle command training, simulations and simulation support for U.S. and allied military forces, the Defense Group produces instrumented air and ground combat training systems, high technology avionics, data links and communications products for government and commercial customers, and provides a wide range of technical and logistics services.

Cubic's other major segment, Cubic Transportation Systems Group, designs and manufactures automatic fare collection systems for public mass transit authorities worldwide.