Cubic Corp. reports increase in third-quarter sales, earnings.

SAN DIEGO--(BUSINESS WIRE)--July 23, 1996--Cubic Corp. Tuesday reported an increase in sales and earnings for the third quarter of fiscal 1996.

At the same time, company shareholders approved a 3-for-2 stock split and the board of directors approved a dividend increase.

Earnings for the quarter ended June 30, 1996, were up 163 percent at $3,136,000, or 35 cents per share adjusted for the stock split, compared with $1,188,000, or 13 cents per share on an adjusted basis, for the same quarter last year.

Third-quarter 1996 earnings equated to 52 cents per share before the stock split. Sales for the third quarter were $98,667,000, vs. $94,395,000 in the same quarter last year.

Subject to notification of approval of the listing application by the American Stock Exchange, the additional shares of stock resulting from the stock split will be distributed Aug. 7, 1996, to shareholders of record at the close of business Aug. 1, 1996. Cash will be paid in lieu of fractional shares based on the closing price on the American Stock Exchange on the record date.

The company announced a 19-cents-per-share semiannual dividend payable on Aug. 23, 1996, to stockholders of record on Aug. 14, 1996. Adjusted for the stock split, this is an increase of 7.5 percent.

The San Diego-based company, whose primary business segments include defense electronics and automatic revenue collection, reported sales of $303,501,000 for the first nine months of the fiscal year, compared with $255,970,000 for the same period a year ago.

Net income for the first nine months of fiscal 1996 was $7,788,000, compared with $3,420,000 for the same period a year ago. Adjusted for the stock split, per-share earnings were 87 cents for the period, vs. 38 cents last year. The nine-month earnings for fiscal 1996 equated to $1.30 per share before the stock split.

``This is the fifth consecutive quarter of increased earnings,'' said Walter J. Zable, chairman and chief executive officer. ``Our income continues to increase, and we are on track for another year of healthy, sustainable growth.''

Cubic Automatic Revenue Collection Group designs and manufactures automatic fare-collections systems throughout the world for public mass transit, including rail and buses.

The Cubic Defense Group produces instrumented air and ground training systems for both the U.S. and allied military forces and supports military simulations and battle command training. The group also produces communications equipment, avionics, data links and aerospace systems, and provides product logistical support. -0-

                            CUBIC CORP.
                       Financial Highlights

                                                 Third quarter ended
                                                       June 30,
                                                  1996         1995
Sales                                      $98,667,000  $94,395,000
Net income                                 $ 3,136,000  $ 1,188,000
Net income per share (a)                      35 cents     13 cents
Average shares of common stock               8,981,000    8,981,000

                                                  Nine months ended
                                                       June 30,
                                                  1996         1995
Sales                                     $303,501,000 $255,970,000
Net income                                $  7,788,000 $  3,420,000
Net income per share (a)                      87 cents     38 cents
Average shares of common stock outstanding   8,981,000    8,981,000

(a)  All per-share amounts have been adjusted to reflect the 3-for-2
stock split approved by shareholders on July 23, 1996.  Before the
impact of the stock split, earnings would have been 52 cents for the
third quarter and $1.30 for the nine months, compared with 20 cents
and 57 cents, respectively, in the previous year.

CONTACT: Cubic Corp., San Diego 

Gerry Reeves, 619/277-6780