Cubic Receives $2.5 Million to Produce Key Components for U.S. Army Virtual Training System.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 17, 2004

Cubic Defense Applications, the defense segment of Cubic Corp. (AMEX: CUB), has been selected to produce key components for the U.S. Army's Close Combat Tactical Trainer (CCTT) system -- a sophisticated virtual trainer that simulates the armored combat environment.

Cubic will provide computer-related hardware and crew station electronics for the CCTT under a $2.5 million subcontract awarded by Lockheed Martin. Deliveries are scheduled to begin in August 2004. This award is the sixth CCTT production contract that Cubic's Simulation Systems Division (SSD) has received from Lockheed Martin Simulation, Training & Support, based in Orlando, Fla.

"SSD has a long history of on time, cost-effective, quality product deliveries to Lockheed Martin. We are pleased to continue this tradition," said Terry Kohl, vice president and general manager of the Simulation Systems Division.

The CCTT is a part of the Combined Arms Tactical Trainer program that trains crews -- up through battalion levels -- in manned simulators replicating a realistic force-on-force, virtual battlefield environment. The CCTT simulates operational characteristics and performance of armored vehicle combat, complete with the sights and sounds of warfare.

In the CCTT training environment, combat crews operate simulated armored vehicles while command staff and support personnel man simulated combat stations. Cubic provides the networked simulation modules that replicate the performance of tactical vehicles and armaments in real time.

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 and 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. Cubic Corp.'s other major segment, Cubic Transportation Systems, designs and manufactures electronic ticketing systems for public mass transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.