Cubic Awarded $3.2 Million for Unique ``Cope Thunder'' Joint Combat Training System Upgrade.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--July 26, 2001

Cubic Will Help Create First Combat Training System to

Integrate Combat Search and Rescue and High-Tech Review

Capability With Ground and Air Instrumentation

Cubic Defense Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has been awarded a $3.2 million follow-on contract to integrate Combat Search and Rescue operations with air and ground instrumentation technology for Cope Thunder -- a joint services combat training exercise conducted in Alaska four times a year.

Cope Thunder is an intense two-week exercise that provides realistic combat training for aircrews and ground support forces. With Cubic's help, Cope Thunder is evolving to become the world's first PC-based joint combat instrumentation system to integrate combat search-and-rescue capability with air and ground combat training systems equipped with precise review and monitoring technology.

Through this instrumentation effort, Cubic is providing Alaska's Eielson Air Force Base with additional exercise monitor and control capability by installing core portions of the company's new PC-Based Range Instrumentation System (PC-RIS). PC-RIS interfaces with analog and digital simulation training technology and provides real-time tracking of ground forces during training exercises so that commanders can monitor missions as they happen and review the exercises later. The new contract represents the end of the first of a six-phase approach to enhancing Alaska military training to world -- class joint exercise capability. Full PC-RIS installation will be completed in the second phase of the program.

Cubic developed core elements of Eielson's integrated range instrumentation system under a $1 million contract awarded in August 2000. Under that agreement, the company designed and produced a prototype harness to be worn by the dismounted warrior containing engagement simulation equipment, a Differential Global Positioning System receiver and a data link to communicate the collected information to central computers. The data will then be transmitted to the Yukon Measurement and Debriefing System via a High Level Architecture interface to allow the integration of the combat search and rescue exercise data with the air combat exercise to provide joint control and review capabilities.

The first phase of the Cope Thunder project will provide the delivery, installation and initial testing of hardware at Eielson AFB and Ft. Wainwright and is scheduled to be completed by the end of next year.

Cubic Corp. is the parent company to two major segments: Transportation Systems and Defense. The Defense Group provides battle command training and instrumented training systems for military forces, as well as avionics, data links, radio communication systems and product logistical support to global government and commercial customers.

Cubic's other major segment, Cubic Transportation Systems, designs and manufactures automatic revenue collection systems for public transit projects throughout the world. For more information about Cubic, see the company's Web site at www.cubic.com.