Cubic Receives $15 Million Order from U.S. Air Force for Next-Generation Air Combat Training System.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 28, 2004

Cubic Defense Applications, the defense segment of San Diego-based Cubic Corp. (AMEX:CUB), has received the first major production order from the U.S. Air Force to provide its advanced rangeless air combat training system to three Air Force locations. The delivery order, valued at $14.684 million, was placed under the P5 Combat Training System (P5CTS/TCTS) contract on March 31, 2004.

The P5 CTS/TCTS contract, potentially valued at $525 million over 10 years, calls for the development of the next-generation, common air combat training system for the Air Force, Navy, Air National Guard and the Marine Corps. Cubic and its principal subcontractor, DRS Training and Control Systems Inc, are providing P5 CTS/TCTS to approximately 27 sites under an Indefinite Delivery, Indefinite Quantity (ID/IQ) contract awarded in 2003.

The Air Force order includes the production of 112 Airborne Subsystem participant instrumentation packages and 17 portable and transportable ground systems for live monitoring and debriefing. The equipment will be delivered to Eglin AFB, Langley AFB and Seymour-Johnson AFB.

"The order represents a significant milestone in the P5 CTS/TCTS program and signifies the beginning of the first major production efforts," said Gerald Dinkel, president and CEO of Cubic Defense Applications. "This production order means new training capabilities will soon be available to support the critical live combat training of Air Force pilots."

Under the ID/IQ contract, Cubic and DRS expect to produce more than 1,300 participant instrumentation packages and hundreds of ground-based display systems.

The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces as well as simulation training, force transformation assistance, educational services, operations & maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue avionics and radio communications for military and civil markets. 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 Web site at www.cubic.com.