Cubic Corp. Reports 26 Per Cent Earnings Growth And Announces Dividend.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Aug. 14, 2000

Cubic Corp. (AMEX:CUB) today reported a 26 per cent increase in earnings for the third quarter of fiscal 2000 compared to fiscal 1999.

Net income for the quarter was $4,714,000 or 53 cents a share compared to $3,741,000 or 42 cents a share for the same quarter in 1999. Sales for the three months ended June 30 were $133,064,000 compared to $129,289,000 for the same quarter last year.

For the nine months ended June 30, 2000, net income grew 38 per cent to $13,397,000 or $1.50 a share on sales of $393,395,000. The figures for the comparable period in 1999 were net income of $9,636,000 or $1.08 a share on sales of $367,691,000.

The company also announced a regular semi-annual cash dividend of 19 cents per share payable on Sept. 19, 2000 to shareholders of record at the close of business on Aug. 22, 2000. Cubic has now paid uninterrupted semi-annual dividends for 29 consecutive years.

"We have exceptional opportunities ahead of us in all divisions of Cubic Corporation," said Walter J. Zable, Cubic chairman and chief executive officer. "Our recent acquisitions have strengthened an already solid business base," Zable said.

                              Cubic Corp.
        Condensed Consolidated Statements of Income (Unaudited)

             (amounts in thousands, except per share data)

                          Nine Months Ended        Three Months Ended

                              June 30,                  June 30,

                          2000         1999        2000         1999


Revenues:
Sales                   $393,395     $367,691    $133,064     $129,289
Other income               5,866        3,649       2,587        2,043
                         -------      -------     -------      -------
                         399,261      371,340     135,651      131,332
Costs and
 expenses:
Cost of sales            310,655      293,963     105,721      107,086
Selling, general
 and administrative
 expenses                 59,169       52,342      19,690       15,171
Goodwill
 amortization              1,674        1,590         634          542
Research and
 development               4,517        5,639       1,478        1,717
Interest                   2,749        3,170         914        1,225
                         -------      -------     -------      -------
                         378,764      356,704     128,437      125,741

Income before
 income taxes             20,497       14,636       7,214        5,591

Income taxes               7,100        5,000       2,500        1,850


Net income              $ 13,397   $    9,636    $  4,714     $  3,741

Net income per
 common share           $   1.50     $   1.08    $   0.53     $   0.42


Dividends per
 common share           $   0.19     $   0.19      $   --       $   --


Average number
 of common shares
 outstanding               8,907        8,907       8,907        8,907

                              Cubic Corp.
                 Condensed Consolidated Balance Sheets

                        (thousands of dollars)

                                       June 30,         Sept. 30,
                                         2000             1999
                                      (Unaudited)    (See note below)

ASSETS

Current assets:
Cash and cash equivalents              $  56,848        $  61,540
Marketable securities,
 available-for-sale                        3,212            1,802
Accounts receivable                      147,454          133,252
Inventories                               32,185           36,400
Deferred income taxes
 and other current assets                 14,008           16,540

Total current assets                     253,707          249,534

Property, plant and
 equipment -- net                         40,004           42,976
Goodwill, less amortization               21,957           23,273
Miscellaneous other assets                10,916           14,378
                                       ---------        ---------
                                       $ 326,584        $ 330,161

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Short-term borrowings                    $    --        $   6,457
Accounts payable                           8,647           13,761
Customer advances                         24,936           23,460
Salaries and wages, and
 amounts withheld from
employees' compensation                   19,325           17,757
Other current liabilities                 23,444           20,219
Income taxes payable                       3,475            4,671
Current portion of
 long-term debt                               --            5,000

Total current liabilities                 79,827           91,325

Long-term debt                            50,000           50,000
Deferred income taxes
 and other                                 5,140            5,871

Shareholders' equity:
Common stock                                 234              234
Additional paid-in capital                12,123           12,123
Retained earnings                        218,052          206,347
Accumulated other
 comprehensive income (loss)              (2,729)             317
Treasury stock at cost                   (36,063)         (36,056)
                                         -------          -------
                                         191,617          182,965
                                         -------          -------
                                       $ 326,584        $ 330,161

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