Cubic Defense Systems to Provide Air Combat Training System for Royal Saudi Air Force.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Jan. 3, 2002

The U.S. Air Armament Center at Eglin Air Force Base, Fla., has awarded a $19 million contract to Cubic Defense Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), to provide a new air combat training system to the Royal Saudi Air Force for F-15 fighter pilot training.

As part of a U.S. government Foreign Military Sale, the Royal Saudi Air Force (RSAF) will receive a system similar to Cubic's Kadena Interim Training System (KITS), now being used by U.S. Air Force pilots at Kadena Air Base, Okinawa, Japan, and Air National Guard pilots at Alpena, Mich.

The Saudi Arabian KITS, which the RSAF's new system will be called, is scheduled for completion by May 2003 with follow-on contractor logistics support. System components will include Cubic's Air Combat Training -- Rangeless (ACT-R) pods, its Individual Combat Aircrew Display System (ICADS (TM)), spares and test equipment. Cubic will also train RSAF personnel on how to use the system and provide two years of operations and maintenance support.

The contract represents Cubic's first sale of air combat training equipment for use in Saudi Arabia and the first sale of its ACT-R system in the Middle East. Cubic Corp.'s Cubic Sales Ltd. subsidiary took a leadership role in winning the business.

"Our dedicated and dynamic team worked diligently to adapt a great product -- our ACT-R system -- to the specific requirements of the Royal Saudi Air Force," said George Stapleton, president of Cubic Sales Ltd. "This is a significant contract win that will open the door to additional business growth both within Saudi Arabia and the Gulf Cooperation Council."

Cubic Defense Systems will begin work on the contract immediately. The work will be performed at Cubic's San Diego facility with the first shipment of equipment scheduled a year from now.

News of the RSAF contract closely follows Cubic's announcement of a USAF contract award valued at approximately $40 million to provide nine USAF and Air National Guard facilities with autonomous, "rangeless" air combat training capability.

"Cubic has worked effectively with the Royal Saudi Air Force and U.S. government to bring this program to fruition," said Bruce Roberts, president and CEO of Cubic Defense Systems. "This sale further illustrates the world acceptance of our ACT-R technology."

Cubic Defense Systems is part of the Cubic Defense Group, which provides instrumented air and ground combat training systems, battle command training, simulations and simulation support for U.S. and allied military forces. The Group also produces high technology avionics, data links and communications products for government and commercial customers and provides a wide range of technical and logistics support services.

Cubic Corp.'s other major segment, Cubic Transportation Systems, designs and manufactures automated fare collection systems for public mass transit authorities worldwide.