Cubic Corp. Announces Continued Growth in Sales and Income.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 3, 2000

Cubic Corp. (AMEX:CUB) today reported a 55 percent increase in income on a 17 percent increase in sales for the first quarter of fiscal 2000.

Net income for the quarter ended Dec. 31, 1999 was $4,127,000 or 46 cents a share compared to $2,665,000 or 30 cents a share for the same quarter of the year before. Sales grew to $115,398,000 for the quarter versus $98,758,000 in prior year.

&uot;Fiscal 2000 is off to a good start for us,&uot; said Cubic chairman and chief executive officer Walter J. Zable. &uot;Sales and earnings are up in all of our business segments. I expect earnings to continue to grow.&uot;

Cubic Transportation Systems designs and manufactures automatic fare collection systems for public mass transit, including rail and buses throughout the world. The Cubic Defense Group produces instrumented air and ground combat training systems for both the U.S. and allied military forces. In addition, it produces avionics, data links, and communications systems and provides support for military simulations and battle command training, and provides product logistical support.

In addition to historical matters, this news release contains forward-looking statements with respect to future earnings. These forward-looking statements are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. 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 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 transportation industries, and other competitive and technological factors.

                              Cubic Corp.
        Consolidated Condensed Statement of Income (Unaudited)
             (Amounts in thousands, except per share data)

                                        Three Months Ended
                                             Dec. 31
                                     1999                  1998
Revenues:
Sales                              $115,398              $ 98,758
Other income                          1,504                   789
                                    -------                ------
                                    116,902                99,547

Costs and expenses:
Cost of sales                        88,212                74,636
Selling, general and
 administrative expenses             19,917                18,481
Research and development              1,328                 1,586
Interest                                917                   779
                                    -------                ------
                                    110,374                95,482

Income before income taxes            6,527                 4,065
Income taxes                          2,400                 1,400
Net income                         $  4,127              $  2,665
Net income per share               $    .46              $    .30
Average shares of common
 stock outstanding                    8,907                 8,907


                           Cubic Corp.
                 Consolidated Condensed Balance Sheet
                        (Thousands of dollars)

                                   Dec. 31,             Sept. 30,
                                     1999                 1999
                                  (Unaudited)        (See note below)

ASSETS
Current assets:
Cash and cash equivalents         $  72,883             $  61,540
Marketable securities,
 available-for-sale                   1,775                 1,802
Accounts receivable                 119,581               133,252
Inventories                          32,186                36,400
Deferred income taxes and
 other current assets                14,621                16,540
Total current assets                241,046               249,534

Property, plant and
 equipment -- net                    42,181                42,976
Goodwill, less amortization          22,531                23,273
Deferred income taxes and
 other assets                        12,363                14,378
                                    -------               -------
                                  $ 318,121             $ 330,161

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Current liabilities:
Short-term borrowings             $   1,619             $   6,457
Trade accounts payable                9,026                13,761
Customer advances                    24,348                23,460
Other current liabilities            33,347                37,976
Income taxes payable                  3,910                 4,671
Current portion of long-term debt     5,000                 5,000
Total current liabilities            77,250                91,325
Long-term debt                       50,000                50,000
Deferred income taxes and other
 liabilities                          4,846                 5,871
Shareholders' equity:
Common stock                            234                   234
Additional paid-in capital           12,123                12,123
Retained earnings                   210,474               206,347
Accumulated other
 comprehensive income                 (744)                   317
Treasury stock at cost             (36,062)              (36,056)
                                    186,025               182,965
                                  ---------             ---------
                                  $ 318,121             $ 330,161

Note: The balance sheet at September 30, 1999 has been derived from the audited financial statements at that date.