Cubic Awarded Contract to Deliver Fare Collection System For Van Nuys Airport ``FlyAway'' Bus Terminal.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Jan. 13, 2004

Future Interoperability with L.A. Regional Smart Card System

Expands Reach to Air Travelers

Cubic Transportation Systems Inc., a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has received a contract from Los Angeles World Airports to provide an automated fare collection system for the Van Nuys Airport's new FlyAway Bus Terminal. The system would make the terminal compatible with the Cubic-designed Los Angeles regional public transit smart card fare collection system.

The Van Nuys Bus Terminal contract, valued at approximately $2.2 million, includes two years of maintenance and an option for an additional year of service. A second contract option would allow Cubic to make a system enhancement that would let users of the Bus Terminal pay their fares with the same smart card they use for public transportation throughout the L.A. regional system. Cubic is supplying that regional smart card system under an $84 million contract awarded by the Los Angeles County Metropolitan Transportation Authority. It will be operational throughout the county in 2005.

Cubic's automated fare collection system for the terminal's bus boarding area will include ticket vending machines for patrons to purchase magnetically encoded bus tickets, sales office terminals for booth agents to sell tickets and gates. Cubic will also provide its open-architecture, modular back-office Nextfare(TM) Central System, which features a new Web-based bus reservation system module. Nextfare offers the scalability to accommodate future FlyAway terminals-should they be added to the system-and also the ability to integrate smart card technology that would link it to the L.A. regional system.

The Van Nuys FlyAway Bus Terminal provides bus service to and from Los Angeles International Airport (LAX). FlyAway buses make about 100 trips daily and transport nearly 2,100 passengers to and from LAX -- a service that reduces traffic congestion by eliminating an estimated 2,000 cars from the region's roads and freeways every day.

In 2003, Cubic received a $16 million service contract from the Los Angeles World Airport for parking control systems maintenance and technical services to ensure the parking facilities at Los Angeles International, Van Nuys and Ontario International airports will be operational around the clock, 365 days a year.

"We are excited about this opportunity to help our long-term customer expand its system with fare, ticketing and revenue management for its express bus services. This is right in line with our vision for a truly multi-modal, multi-application system in Los Angeles. Our ticketing systems for mass transit are easily extendable to airports and airport flyaways, and we are pursuing several similar opportunities where our system and service offerings are an excellent fit," said Richard Johnson, president and chief executive officer of Cubic Transportation Systems Inc.

Cubic has delivered airport access, ticketing and revenue management systems for many of the world's busiest airports including, most recently, John F. Kennedy International Airport where the new AirTrain(TM) light rail airport access system launched on December 17. Other airports linked to mass transit through Cubic's systems include San Francisco International Airport, Washington, D.C.'s Reagan National, Chicago's O'Hare, London's Heathrow, Sydney Airport and Hong Kong International Airport.

Cubic Transportation Systems Inc. is the world's leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic's solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call center services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems, delivered over 400 projects in 40 major markets on 5 continents. Active projects include London, New York / New Jersey region, Washington, D.C. / Baltimore / Virginia region, Los Angeles region, San Diego region, San Francisco, Minneapolis/St. Paul, Chicago, Houston, Atlanta, South Florida, Vancouver and Edmonton, Canada, Brisbane, Australia, Singapore, Bangkok, Thailand, and Scandinavia.

The corporation's other major segment, Cubic Defense Applications, provides 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. For more information about Cubic, see the company's Web site at www.cubic.com.