Cubic Delivers First Comprehensive Homestation Training System to U.S. Army Command in Korea.

SAN DIEGO -- The defense segment of Cubic Corporation (AMEX:CUB) today announced it has delivered the U.S. Army's first Initial - Homestation Instrumentation Training System (I-HITS) -- the world's most advanced deployable training system -- to the Eighth U.S. Army at Camp Casey, Korea.

I-HITS provides high-fidelity training capabilities, including battle tracking, data collection and after-action reviews, without the need for a fixed infrastructure. A completely self-contained package, I-HITS can be rapidly deployed to support force-on-force, force-on-target, joint and combined arms training.

Cubic Defense Applications is delivering I-HITS to U.S. and allied forces under a five-year contract awarded in 2005 from the U.S. Army's PEO-STRI. The contract is potentially worth $71.7 million if all options are exercised.

"The rollout of I-HITS represents a major milestone for our forces. It is the first of its kind to provide flexible, Combat Training Center (CTC) capabilities to military units at homestations and while deployed," said Ray Barker, senior vice president of Cubic's Training Systems Business Unit. "I-HITS provides turnkey training capabilities -- from mission planning to objective assessments -- needed for mission success. It is also cost-effective, reliable and easy to use."

The I-HITS configuration delivered to Camp Casey supports force-on-force engagement training for the U.S. Army's mechanized/armor infantry company.

The delivery included player instrumentation that interfaces with MILES engagement simulation; observer/controller equipment; a transportable communications infrastructure, including a satellite-linked backbone; a mobile exercise control center; and deployable after-action review capability.

The instrumentation tracks the positions and casualty status of troops and vehicles in real time and relays exercise data to command centers for post-mission analysis and after-action review presentations. The system can operate in tents, fixed shelters, buildings and vehicles.

The Camp Casey instrumentation supports training for dismounted infantry, vehicles and observer/controllers -- and it is expandable to integrate with over 2,000 live players and 8,000 virtual and constructive entities. It also provides training for urban operations.

"The feedback from the users was extremely positive. They were enthusiastic and amazed at the system's capabilities. They were particularly impressed that they could setup and dismantle the system with an hour," said Randy Hoyt, Cubic's I-HITS program manager.

"I-HITS changes the way soldiers train. It deploys where the soldiers deploy. It trains where the soldiers train," Hoyt said. "It also provides rapid development of training scenarios prior to the exercise, and immediate feedback following the exercise. With I-HITS, troops receive the 'ground truth' of the exercise -- objective measurements of the players' performance -- to ensure a high-degree of combat readiness, at any training site."

Future upgrades include the integration of Test and Training Enabling Architecture, or TENA, to support emerging live-virtual-constructive exercises and joint operations. Other enhancements include the addition of live force-on-target training and remote scenario planning and rehearsal.

The next customers to receive I-HITS include Schofield Barracks, Hawaii, in Fall 2006, and Slovakia in Fall 2007.

The Cubic Defense Applications group, one of Cubic's two major segments, is a world leader in realistic combat training systems, mission support services and defense electronics. The corporation's other major segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit authorities. For more information about Cubic, see the company's website at www.cubic.com.