Cubic Selected as Preferred Supplier for Merseyrail Fare Gates.

Business Editors

SAN DIEGO & SALFORDS, U.K.--(BUSINESS WIRE)--March 9, 2004

Cubic Transportation Systems Limited, the United Kingdom subsidiary of San Diego-based Cubic Corporation (AMEX:CUB), has been selected as the preferred supplier of an automated gating system for Liverpool-based Merseyrail, the busiest commuter rail network outside London with an annual ridership of over 27 million passengers.

Once Merseyrail issues the GBP 2 million (US$3.8 million) contract, Cubic will build, deliver and install its Universal Gate, a modularly constructed access control and fare management system using state-of-the-art technology that complies with Merseyrail's stringent safety requirements.

"Merseyrail has moved quickly and decisively to start their program of improvements and innovation following the appointment last year of Serco/NedRailways to run the franchise," said Nigel Bryant, managing director of Cubic Transportation Systems Limited. "Increased passenger safety, the re-capture of revenues previously lost to fraud and fare evasion, and the ability to track public transportation usage are among the many benefits that will enable Merseyrail to better serve its customers in the future."

The gates will be installed at the busiest of the 66 stations on the Merseyrail network. The gates support the magnetic strip farecards that Merseyrail initially plans to use, and include Cubic's patented Tri-Reader(R), which can process any type of contactless smart card that meets international standards. The gates will be ready to accept smart cards when Merseytravel, the Passenger Transport Executive in Merseyside, upgrades to a smart card scheme in the future.

Including the Merseyrail project, which will be completed later this year, Cubic will have delivered more than 1,000 gates to the UK train operating companies that have been running the former British Rail network since it was privatized in the mid-1990s.

Cubic is a principle shareholder in the TranSys consortium, which designed, delivered and operates the Oyster(TM) smart card system in London. Cubic provided all of the ticketing equipment, infrastructure and ongoing maintenance enabling customers who use the Oyster(TM) smartcard to make a seamless transition between the buses, Tubes, trams and Docklands Light Railway of the Transport for London network.

Cubic Transportation Systems, Inc. is the world's leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic's solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic's fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London, New York / New Jersey region, Washington, D.C. / Baltimore / Virginia region, Los Angeles region, San Diego region, San Francisco, Minneapolis/St. Paul, Chicago, Houston, Atlanta, South Florida, Vancouver and Edmonton, Canada, Brisbane, Australia, Singapore, Bangkok, Thailand, and Scandinavia.

The corporation's other major segment is Cubic Defense Applications. For more information about Cubic, see the company's web site at www.cubic.com.