Cubic Begins Negotiations with MARTA for Multi-Million Dollar Smart Card Fare Collection System.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--April 23, 2003

Cubic Transportation Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has begun negotiations with the Atlanta's Metropolitan Atlanta Rapid Transit Authority (MARTA) for a contract to replace the city's outdated fare collection system with state-of-the-art smart card technology.

With options, the contract could be worth approximately $100 million.

Cubic's high-tech gating reduces fare evasion, and its smart card technology gives commuters a way to prepay, making the fare collection process more efficient for transit agencies. The MARTA system could eventually be linked to other Atlanta-area transit agencies, as well as toll roads and airport parking facilities, providing "intermodal" fare collection in the area.

Cubic is already creating such a regional system in the Washington, D.C. area, where smart cards are used for rail, bus and parking, and some employers credit their employees' transit benefits directly on the transit cards. Cubic is linking the smart card system to 16 other bus and rail agencies in Virginia and Maryland. Under recently awarded contracts, the company is also creating regional smart card systems in Los Angeles and San Diego.

Cubic expects negotiations with MARTA to be completed by the end of the summer.

Cubic is the world's largest provider of integrated electronic ticketing systems and has smart card contracts for public transit systems in North America, Europe and Asia. Every year, nearly 10 billion people use Cubic systems in more than 40 major markets in cities on five continents, including London, Washington, D.C., Hong Kong, Chicago, New York, Guangzhou, Shanghai, Atlanta, San Francisco, Singapore and Miami. As part of the TranSys consortium, Cubic also is supplying the entire automated fare collection system including smart cards for the London PRESTIGE project.

The corporation's other major segment, Cubic Defense Applications, provides realistic combat training systems for military forces as well as 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.

Recently, Cubic added a security group to expand its smart card technology into non-transit uses including security and access control. For more information about Cubic, see the company' Web site at www.cubic.com.