Cubic Receives Contract to Coordinate Training Exercises Involving Chemical, Biological, Radiological, Nuclear Explosives Attacks.

SAN DIEGO -- The Defense Threat Reduction Agency (DTRA) has awarded the defense unit of Cubic Corporation (AMEX:CUB) a contract with a program ceiling of $43 million to coordinate training exercises to help prepare military and civilian organizations around the world to manage the consequences of chemical, biological, radiological, nuclear and high-yield explosives (CBRNE) attacks. The initial term for Cubic's contract is five years, with one five-year option and an additional one-year option.

Under the contract, Cubic will be the civilian contractor for the DTRA CBRNE Exercise Support Program and will also coordinate exercise-related events at various locations in the United States and overseas. The DTRA-led exercises will range in scope from small-scale events such as senior-leader seminars and computer-based tabletop exercises to major Command Post Exercises and live training exercises involving hundreds to more than a thousand participants.

"These exercises will help DTRA improve U.S. response capabilities and evaluate national, federal, state, and local policies for responding to CBRNE or other incidents involving Weapons of Mass Destruction (WMD)," said Bill Magill, Cubic's program manager for DTRA CBRNE Exercise Support. "The exercises also will support senior military leaders in charge of the geographic combatant commands from Europe to Asia in assessing the effectiveness of plans, policies, and procedures for their region."

Cubic's Threat Technologies Division, based in Northern Virginia, will provide DTRA's Combat Support Directorate with analytical, program management and staffing resources required to plan, develop and execute the live and computer-based simulation exercises. Cubic will also help compile after-action reviews and summaries of training events to help DTRA assess the effectiveness of the training programs.

In addition to DTRA and other Department of Defense organizations, U.S. agencies participating in the DTRA CBRNE Exercise Support Program may include the U.S. Departments of Energy, State, Homeland Security and Justice; as well as state and municipal governments.

Magill credited Cubic's success in winning this contract to the company's extensive expertise with CBRNE programs, noting that Cubic's Threat Technologies Division currently provides CBRNE computer weapons effect models to DTRA and has assisted the agency in integrating CBRNE models into large-scale military training exercises involving WMD scenarios. In addition, Cubic's Operations Support Division, based in the Tidewater area of Virginia, has extensive expertise in planning and executing live and computer-based simulation exercises for the U.S. military, including WMD mission rehearsal exercises.

The Threat Technologies Division and Operations Support Division are part of the Mission Support Business Unit of Cubic's defense segment -- Cubic Defense Applications (CDA). CDA provides realistic combat training systems for military forces, as well as mission support services for training and exercises, modeling and simulation, force modernization, educational services, curriculum design and development, web-based learning solutions, operations and maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and 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.