Cubic Is Awarded Lot 5 Option on U.S. MILES 2000 Contract as the Successful Next-Generation Training System Goes On-Line.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 29, 2000

Cubic Defense Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has been awarded a $24 million contract to provide the U.S. Army additional Multiple Integrated Laser Engagement System (MILES 2000) equipment.

Lot 5 brings the total value of Cubic's MILES 2000 orders from the U.S. Army Simulation, Training and Instrumentation Command to $134 million. The equipment will be delivered to Ft. Benning, Ga. beginning early next year, with a projected completion time of nine months.

The Lot 5 contract comes as the U.S. Army begins deployment of the next-generation Cubic military training system at Ft. Stewart, Ga.

"Lot 5 and the Ft. Stewart deployment represent major milestones for MILES 2000," said Bruce Roberts, president, Cubic Defense Systems. "With our next-generation training system, we are giving our soldiers the latest technology, enabling them to train in a realistic, real-time environment."

MILES 2000 is a laser-based ground forces training system that allows commanders to conduct force-on-force training exercises, in which the action and performance of soldiers, weapons and vehicles are recorded and analyzed in an "after-action review."

The Ft. Stewart deployment of Cubic's laser-based MILES 2000, the world's most advanced tactical simulation system, follows a year of rigorous testing and successful demonstrations during a variety of military training exercises and competitions. MILES 2000 exceeded operational criteria in these real-world operational environments.

"Developing this state-of-the-art system has been an exciting challenge," said Lee Patterson, program director, Tactical Engagement Simulation for Cubic. "The result has been a better product -- resulting in lighter, smaller, more durable equipment."

A big plus for MILES 2000 in the field is its simplicity and ability to withstand harsh weather. Soldiers are pleased that the equipment performs well in extreme conditions, even -- according to a trainer in a recent article in Ft. Stewart's The Frontline -- after being submerged in water for extended periods of time.

Along with proving itself at Ft. Stewart, where MILES 2000 will be integrated in every aspect of combat training, the system performed flawlessly during exercises such as the Ranger Training Brigade's Best Ranger Competition at Ft. Benning, Ga.; Defender Challenge, an allied military police competition at Lackland Air Force Base, Texas; and U.S. Marine Corps training exercises at Quantico, Va.

Cubic Defense Systems has sold MILES 2000 to several foreign militaries, including the Royal Netherlands Marine Corps, United Kingdom Ministry of Defence and Kuwait Land Forces.