Cubic Completes Delivery, Integration of New Fare Collection System for Van Nuys Airport ``FlyAway'' Bus Terminal.

SAN DIEGO -- Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (AMEX:CUB), announced it has completed delivery and integration of an automated fare collection system for the new Van Nuys Airport FlyAway Bus Terminal, which offers express bus service for travelers going to and from Los Angeles International Airport.

Cubic's FlyAway Parking system for airports and bus operators includes its open-architecture, backoffice Nextfare(TM) Central System. Cubic also designed and delivered sales office terminals for booth agents to sell tickets, ticket vending machines for onsite bus ticket purchases and gates for collecting fares in the bus boarding area. The new system was supplied under a $2.2 million contract Cubic received from the Los Angeles World Airports (LAWA) in January 2004.

Cubic also will provide two years of maintenance services. The contract also includes a contract option for an additional year of maintenance and a second option for making the parking system interoperable with the Los Angeles regional public transit smart card fare collection system that Cubic is developing. Making the Van Nuys FlyAway bus system interoperable with the public transit fare collection system would enable FlyAway patrons to pay their fares with the same smart card they use for public transportation elsewhere in the L.A. regional system.

Cubic is also supplying parking control systems maintenance and technical services for LAWA's parking facilities at Van Nuys, Los Angeles International and Ontario under a $16 million service contract awarded in 2003. Cubic has been providing services at the three airports since 1988.

Cubic Transportation Systems, Inc. is the world's leading full-service systems integrator 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, back office computer systems, support equipment, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre 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. Cubic has delivered over 400 projects in 40 major markets on five 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; Atlanta; Vancouver and Edmonton, Canada; Brisbane, Australia; Singapore; Bangkok, Thailand; China; and Scandinavia.

The corporation's other major segment, Cubic Defense Applications, is a world leader in realistic combat training systems, mission support services and defense electronics. For more information about Cubic, see the company's web site at www.cubic.com.