Cubic Awarded $33.5M U.S. Army Contract for Engagement Skills Trainer 2000 Production.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 18, 2004

Cubic Defense Applications, the defense segment of Cubic Corp. (AMEX: CUB), today announced it has received a $33.5M delivery order award from the U.S. Army for the production and deployment of the Engagement Skills Trainer 2000 (EST 2000) training system, simulated weapons and program related services. This is the fifth and largest production order for the program, and augments the current production and deployment of the EST 2000 training systems. The U.S. Army Program Executive Office - Simulation Training and Instrumentation (PEO STRI) in Orlando, Fla., made the award under the STRICOM Omnibus contract.

The EST 2000 is the only small arms training system validated by the United States Army Infantry School. As the most accurate small arms training system available today, this device trains marksmanship skills, squad level collective defense and judgmental 'shoot-don't shoot' tactics. The EST 2000 system currently is being deployed in the U.S. Army's Initial Entry Training for Basic Rifle Marksmanship skills for all new soldiers entering the army. Training is conducted on various weapons including rifles, pistols, machine guns, shotguns, anti-tank and grenade launchers.

Under this award, Cubic's Simulation System Division (SSD) is providing small arms training systems to the U.S. Army Active and Reserve components. EST 2000 systems are currently operational in Kuwait and Afghanistan in the EST Deployable Shelter System. Future deployments into Iraq to support sustainment training of troops are currently in the planning process.

Due to the system's superior accuracy and flexibility, there is growing interest from other U.S. agencies as well as international customers. When fully fielded, the EST 2000 will train more soldiers each year than any other army training system.

According to Terry Kohl, vice president and general manager of the Simulation Systems Division, "The Cubic Simulation Systems Division and PEO STRI work as a close-knit team to ensure our soldiers are the best trained in the world. SSD is committed to meeting the training requirements of today's soldiers -- allowing them to fight, win and return home safely."

The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces as well as simulation training, force transformation assistance, educational services, operations and 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. Cubic Corp.'s other major segment, Cubic Transportation Systems, designs and manufactures electronic ticketing systems for public mass transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.