Cubic Introduces New Software Feature to Reduce Operational Costs of Regional Public Transit Ticketing Systems.

Business Editors/High-Tech Writers

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

New Peer-to-Peer Clearing(TM) Software Creates Potential for

Significant Cost Savings for Transit Authorities

Cubic Transportation Systems Inc., a subsidiary of Cubic Corp. (AMEX:CUB), today introduced a new software feature that eliminates the requirement for a central clearinghouse in regional smart card and magnetic ticketing systems.

Cubic, the world's leading provider of revenue management equipment and central systems for public transit, said the new feature creates the potential for significant savings for public transit agencies.

Building off technology the company introduced in Europe, Cubic's new peer-to-peer software module allows individual agencies to "self-clear," providing a cost-effective alternative to the traditional approach of outsourcing regional clearinghouse services to third-party providers.

Cubic Transportation Systems Inc. has installations in major cities around the world including Chicago, Washington, D.C., New York, London, Shanghai, Singapore, Los Angeles, San Diego and San Francisco (BART and MUNI).

With Cubic's peer-to-peer transaction clearing software, individual agencies can now choose to autonomously clear and recover fares collected from inter-agency transactions that are part of a regional smart card and/or magnetic ticketing system. Agencies can also retain control of issuing their own branded cards, while being able to accept other agencies' cards as well as "regional" cards.

"Cubic is proud to be able to offer solutions to our customers that provide cost savings and revenue enhancements," said Richard Johnson, president and CEO of Cubic Transportation Systems Inc.

Using Peer-to-Peer Clearing(TM), participating agencies negotiate agreements on how the regional system operates; then their revenue management software is structured to allow each agency to participate in automated clearing. With Peer-to-Peer Clearing(TM), each agency can develop fare products and business rules and their central computers will communicate with each other to settle and clear transactions and generate reconciliation reports instead of having to send all of their transactional information to a central clearinghouse for the same process. Like a regional clearinghouse, the entire process is electronic and automatic. The software also allows for same-day settlement and clearing.

"The ongoing cost of using a regional clearinghouse to settle transactional revenues and data has been a recurring theme among our customers," Johnson said. "Cubic has been working with this software application for a number of years in Europe, and we see this as an exciting opportunity, benefiting transit agencies worldwide, to offer it as an extension to our Nextfare(TM) product base."

The new features will allow transit operators to work autonomously, capture revenues, and provide a solution for maintaining brand identity as individual agencies, while still allowing for individual agency cards to be used throughout a specified region, which ultimately could be multi-state.

Peer-to-Peer Clearing(TM) is the latest tool from Cubic's Nextfare(TM) central system, a suite of advanced software modules that provide backend administrative and revenue management for public transit agencies. Nextfare provides several capabilities including central computing and other value-added applications such as autoload or prepaid transit benefits. Individual modules may be implemented as needed and over time, creating a "building block" approach.

Cubic Transportation Systems is the world's largest provider of integrated electronic ticketing systems and has smart card contracts for public transit systems in North America, Europe and Asia. Every year, nearly 10 billion rides are taken worldwide using Cubic-designed payment systems in more than 40 major markets in cities on five continents. As part of the TranSys consortium, Cubic also is supplying the entire automated fare collection system including smart cards for the London PRESTIGE project.

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.