Cubic Introduces Interoperable Military Training and Tactical Systems at UK Aerospace Exhibition; Systems Provide Joint, All-Arms Training and Information Dominance.

Business Editors & Aerospace Writers

SAN DIEGO & LONDON--(BUSINESS WIRE)--July 22, 2002

Cubic Corp. (AMEX:CUB) today introduced new interoperable military training and communications systems at a major UK aerospace exhibition, and demonstrated how these products are bringing British forces a step closer to information dominance and superior joint, all-arms training.

The advanced products are on display through July 28 at Farnborough International 2002.

"Cubic's presence at Farnborough ties together the extensive work we are doing in the UK with developments that address the key issues of mobility and interoperability," said Gerald Dinkel, president and CEO of the Cubic Defense Applications (CDA) group. "The ultimate objective is to allow NATO or coalition forces to jointly train and fight together using compatible air and land systems."

Last month in the U.S., for instance, Cubic successfully demonstrated its interoperable training capabilities at Maple Flag, one of the world's largest multinational air combat exercises held annually at Cold Lake, Canada. During the month-long event, pilots from 11 countries trained in a NATO team environment using Cubic's "rangeless" Air Combat Maneuvering Instrumentation (ACMI) system. The new Canadian CF-18 ACMI now provides both fully autonomous and tethered ACMI training capabilities.

These rangeless/autonomous ACMI products are on display at Farnborough, as well as PC-based exercise control and after-action review systems for joint air-and-ground missions, and Tactical Engagement Simulation (TES) systems for precision gunnery and mobile training. Also featured are new digital tactical data links for Unmanned Aerial Vehicles (UAVs), a software-defined DSP receiver for signal intelligence, an airport spectrum monitoring system that pinpoints sources of interference, smart card applications for access control, and new GPS-based personnel recovery products for combat and civilian missions.

"Our new products are software-intensive and adaptable to new requirements," Dinkel said. "Our presence at Farnborough is part of a broader effort to integrate and expand our capabilities to meet high priority customer requirements."

Committed to meeting customers' increased requirements for joint training and interoperable communications worldwide, Cubic has recently realigned its defense subsidiaries under the newly formed CDA group umbrella.

"As a group, we have all the right pieces in the right places to leverage our competencies in training and communications to quickly meet our customers' requirements," said Ray Barker, CDA senior vice president of Business Development. "I am delighted that we're playing a significant role in helping the UK be a leader in training for 21st century warfare."

At Farnborough, CDA will feature the following UK programs and new products:

UK PROGRAMS

-- AREA WEAPONS EFFECTS SIMULATOR (AWES): Cubic's largest defense program, AWES, is being installed at the Salisbury Plain Training Area in the UK and the British Army Training Unit at Suffield in Alberta, Canada. AWES incorporates GPS-based position tracking with realistic, high-fidelity area weapons and direct-fire simulation effects. It features new individual soldier and vehicle instrumentation systems, and a software-based system for exercise planning, control and evaluation of force-on-force exercises.

Final delivery of the UK AWES system is scheduled for December 2002, with Canada deliveries to follow in 2003. Future plans for AWES include full digitization and the integration of next-generation precision gunnery systems, and rotary wing and fixed-wing platforms for joint and collective training missions.

-- RANGELESS AIRBORNE INSTRUMENTED DEBRIEFING SYSTEM (RAIDS): Cubic is providing its advanced PC-based aircrew debriefing system for the UK's RAIDS under a contract awarded by Matra BAe Dynamics. Cubic will install 22 ground stations equipped with its Individual Combat Aircrew Display System (ICADS). ICADS will enable Royal Air Force aircrews to view in-flight events and data on a PC or laptop.

-- WAH-64 COLLECTIVE TRAINING SYSTEM (CTS): Production is underway for the WAH 64 Collective Training System (CTS), which will provide high-fidelity collective training on the Apache AH MK1 Helicopter. It is designed for the British Attack Helicopter Regiments' special-to-arms training with potential for full UK TES. Using realistic weapons effects simulations, the system allows aircrews to fly training missions and use their suite of weapons, electronics and defensive measures on a portable instrumentation range. Cubic is the systems integrator for the project.

-- AIRBORNE STAND-OFF RADAR (ASTOR) SYSTEM: Cubic is providing the Narrowband Data Link Subsystem (NDLS) for the UK's ASTOR system that is in development. ASTOR offers long-range surveillance and imagery of ground vehicles, troop movements, airfields and transportable launchers. The system will be installed onboard Bombardier Aerospace Global Express jets. The ASTOR data link is a spin-off from Cubic's highly jam-resistant data link for the Joint Surveillance Target Attack Radar System, or Joint STARS.

PRODUCTS

-- TACTICAL COMMON DATA LINK (TCDL): Cubic's digital TCDL transfers radar data, video and other sensor information from UAV surveillance aircraft to analysts on the ground or Navy ships. Its performance has been certified in tests conducted by the U.S. Department of Defense. Its unique design ensures affordability, versatility and interoperability. TCDL is a contender in the UK's Watchkeeper program. It has also been selected for the U.S. Multi-service Target Control System program, designed to improve the interoperability of target control systems at various Department of Defense test and training ranges.

-- STAR/URX 3000-4000 PERSONNEL RECOVERY PRODUCTS: Cubic has developed an interoperable search-and-rescue package that uses global positioning satellite technology, two-way voice communications and digital moving maps to locate downed or missing pilots. The system consists of two main components: the Survivor Tracking and Recovery (STAR) guidance system, which is located inside the rescue helicopter and the compatible URX 3000/4000 handheld survival radios that are carried by the survivors. The package evolved from the Cubic-developed AN/ARS-6(V) Personnel Locator System.

-- AIRPORT INTERFERENCE MONITORING SYSTEM: Cubic has customized its Direction-Finding (DF) technology to help air traffic management isolate, track and eliminate sources of radio-frequency interference in a cost-effective, timely manner. Cubic's Airport Interference Monitoring System allows users to triangulate the source of interference via a master control station, mobile direction-finding stations and customized mapping software. Cubic has installed the system at Los Angeles International Airport and is testing the system at Chicago and New York airports. Our DF radios also support U.S. Air Force tactical training missions and may be used in the future by the Coast Guard to assist with search-and-rescue missions.

-- SECURITY/ACCESS CONTROL: Cubic is building on its defense and commercial systems integration experience and the established presence of its smart card technology in the transit market -- already in use in Washington, DC and Chicago, and planned for several other areas -- to offer high-security access control solutions for borders, airports and other public and private locations. Cubic's GO CARD(R) is the fastest and most reliable smart card in the market today. Cubic's new Security Group is working to integrate biometric functions to help positively identify and authenticate personal characteristics of cardholders and is partnering with other companies to offer fully integrated and validated system solutions.

-- CDR-4000 DSP RECEIVER: This DSP-driven signal intelligence receiver is an ideal product for beam steering, radio direction-finding and other multi-channel uses. The software-defined radio is easily reprogrammed by the users and well-suited for small platforms where critical weight, power and cooling considerations require sharing of resources.

-- PRECISION COMBAT TRAINING SYSTEM (PCTS): PCTS is a cost-effective dual-simulation system for both tactical training and precision gunnery. It provides crew training in all modes of operation in the harshest environments. PCTS is also the only system that provides unrestricted "fire-and-forget" capabilities, and simulates tactical engagements at extended ranges.

-- ADVANCED MULTIPLE INTEGRATED LASER ENGAGEMENT SYSTEMS: Our family of MILES products and next-generation derivative products, support full-scale CTC exercises as well as Military Operations in Urban Training (MOUT) missions. The system -- an integral part of AWES -- allows troops to fire laser-based "bullets" from their actual weapons, then scores and records their performance for AARs.

-- OSCMAR SIMULATOR AND MOUT PRODUCTS: Products from Oscmar International, a Cubic company, include TES products, instrumentation and control equipment. Oscmar also develops MOUT products, mining and de-mining simulators and mobile combat training centers.

-- "RANGELESS" AIR COMBAT TRAINING PODS: Cubic's "rangeless" GPS-based pods incorporate Global Positioning Satellite technology to allow aircrews to train in any available airspace -- without the need for a fixed infrastructure. The instrumented pods, mounted on the aircraft, relay and record detailed information about a pilot's location, maneuvers and firing patterns. This information is then transferred to ground stations or mobile units for live monitoring and debriefs.

-- INDIVIDUAL COMBAT AIRCREW DISPLAY SYSTEM: ICADS allows pilots and instructors to view in-flight events and data on a standard PC or laptop. ICADS features a user-friendly interface, and incorporates commercial off-the-shelf components to keep costs low. ICADS is now supporting Red Flag exercises at Nellis Air Force Base and multinational Cope Thunder exercises in Alaska. It will also be installed at nine Air Force and Air National Guard bases that will receive rangeless/autonomous air combat training technology.

-- PC-BASED RANGE INSTRUMENTATION SYSTEM (PC-RIS): Provides exercise control and after-action reviews for joint combat missions on a personal or laptop computer. This system uses off-the-shelf hardware and software. PC-RIS operates in the Windows environment, and interfaces with both analog and digital systems. PC-RIS can be used for Brigade-level exercises that require multiple workstations and for home station training.

Cubic's Defense Applications group produces 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 a wide range of technical and logistics services. Cubic Corp.'s other major business segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit authorities. In the UK, Cubic is upgrading London Underground and bus fare collection systems as part of PRESTIGE. Visit Cubic on the Web at http://www.cubic.com./