Cubic Communications Acquires RF Power Amplifier Business from Advanced Analog Inc.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Sept. 10, 2001

Cubic Communications Inc., a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has acquired Advanced Analog Inc.'s RF Power Amplifier business.

The purchase, for an undisclosed amount, strengthens Cubic's power amplifier product line for RF communications applications and also moves the company into the "megasonic cleaning" segment of the semiconductor equipment market.

RF (radio frequency) power amplification is used for many communications applications in both military and commercial markets. With Advanced Analog's assets, Cubic better positions itself to cost-effectively compete for future contracts, specifically in the evolving markets for solid-state high power HF communications. In addition, the technology has applications in the "megasonic" cleaning of silicon wafers from which microprocessors and memory chips evolve, and in the control of high power lasers for industrial applications such as the precision cutting of glass and metal for the automotive industry.

The new business line, named the RF Systems Division of Cubic Communications Inc., is located in San Jose, Calif., and includes all resources used in the design, manufacture and sale of the power amplifier product. Cubic's existing sales and customer support staff will add a significant marketing component to the product line, and programs requiring additional engineering support and high volume manufacturing will be supported by Cubic's existing San Diego operation.

Bent Meier, former general manager of the Advanced Analog Inc. Power Amplifier business, has been named vice president and general manager of the RF Systems Division, reporting to Richard M. Lober, president and CEO of Cubic Communications Inc.

"We are excited to have Bent and his team join the Cubic family and view the acquisition as significantly strengthening our position in the worldwide market for high power communications equipment," Lober said. "Equally important is the opportunity this gives us to continue our push into evolving commercial markets. We anticipate that increased development and sales focus on the 'megasonic' cleaning product line, which is directed to the semiconductor equipment market, will result in rapid revenue growth during this sector's rebound over the next nine to 18 months."

"While we have been a leader in high power amplifiers for many years, we view the synergies between our business line and Cubic Communication's products, engineering, sales and manufacturing team as very significant, and as a major driver of our future growth together as a single company focused on these existing and evolving markets," Meier said.

Cubic Communications Inc. provides high quality RF and digital signal processing (DSP)-based wireless communications equipment to government and commercial customers worldwide. Headquartered in San Diego, the company has served the domestic and international communications and signal intelligence markets for more than four decades.

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

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.

In addition to historical matters, this release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements involve predictions of future results. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the company's business and prospects. These include the effects of politics on negotiations and business dealings with government entities, economic conditions in the various countries in which the company does or hopes to do business, competition and technology changes in the defense and transit industries, and other competitive and technological factors.