Cubic Introduces New Mobile Ticketing Machine New Product Allows for Faster Boarding Times and Minimizes Driver Distractions.

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SAN DIEGO--(BUSINESS WIRE)--July 3, 2003

The transportation segment of San Diego-based Cubic Corp. (AMEX:CUB) has introduced the Mobile Ticketing Machine (MTM), an on-vehicle transit ticketing system that issues bus riders paper transfers and processes contactless smart cards. The MTM is an enhancement to Cubic's "one stop" on-bus processing suite of ticketing/fare management equipment, which allows public transit authorities to accept multiple forms of payment, including cash, stored value tickets, time-based passes and smart cards.

The MTM allows for faster boarding times and keeps distractions to a minimum for bus drivers, freeing them to focus on fast, safe, on-time service to the public. The MTM also reduces transfer fraud and eliminates the cost of pre-printed transfers-two concerns of public transfer authorities-as the unit prints transfers on demand at the point of service,

Cubic's MTM product expands the capability of the company's Driver Control Unit (DCU), which was introduced to the public last year. The DCU is a powerful processing platform designed to integrate automatic fare collection technology, including contactless smart card processing and farebox cash collection. The fare processing intelligence software distinguishes between different forms of payment and is compatible with Cubic's Tri-Reader(R) technology, which allows transit authorities to use a variety of smart card platforms.

"Cubic is committed to market development of our bus/on-vehicle ticket processing technology," said Richard A. Johnson, president and CEO of Cubic's transportation subsidiary. "We are continually coming up with new answers that address our customers' growing need to offer regional ticketing, which allows commuters to use one ticket to make seamless transfers among multiple transportation providers and modes," he added.

The MTM unit is sold and priced as part of an integrated ticketing system featuring Cubic's DCU. The DCU works in conjunction with Cubic's new Autoload technology, which allows people to purchase tickets on the Internet and Ticket on Departure, which allows smart cards to reload with a pre-determined amount of value. With a high-speed digital cellular option in combination with an optional GPS receiver, the MTM also gives transit authorities real-time secure communications between vehicles and central communications. It is the heart of an integrated Vehicle Management System.

Cubic is creating multi-agency, multi-mode regional fare collection systems in various areas such as London, Los Angeles, San Diego and the Northern Virginia-Baltimore-Washington, D.C. area, where regional bus and subway providers will be able to allow their riders to pay their fares with a common fare card. In London, the TfL Oyster Smart Card is used; in the D.C. area, it is the WMATA SmarTrip card; and Cubic is performing a contract with the Port Authority Trans-Hudson (PATH) rapid-transit rail system, where the company's smart card technology will be integrated with New York City Transit's (NYCT) MetroCard(SM) system. The company also recently announced a contract milestone with the San Francisco Bay Area Rapid Transit (BART) District, where Cubic's new fare collection will give BART the flexibility in the future to transition to smart card-based ticketing that will be employed by neighboring transit agencies throughout the region.

Cubic Transportation Systems is the world's leading system provider for regional multi-operator intermodal ticketing systems. Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems in more than 40 major markets on five continents, including London; New York; Washington, D.C.; Baltimore; Sydney; counties in Sweden, Norway, and Denmark; Rotterdam; Chicago; Atlanta; San Francisco; Los Angeles; Miami; Hong Kong; Guangzhou; Shanghai; and Singapore.

The corporation's other major segment, Cubic Defense Applications, 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 a wide range of technical and logistics services. For more information about Cubic, see the company's Web site at www.cubic.com.

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