Cubic Showcases `Full Spectrum' Combat Training Package at U.S. Defense Exhibition.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Dec. 2, 2002

Cubic Corporation (AMEX:CUB) today showcases its "full spectrum" combat training and simulation technologies at the Interservice/Industry Training, Simulation and Education Conference (I/ITSEC) in Orlando, Fla.

Cubic's "full spectrum" package is an outgrowth of the company's recent realignment of its defense segment. Five separate companies have been strategically integrated to become the Cubic Defense Applications (CDA) group -- allowing the company to bring more capability to bear on individual customer needs and pursue a broader spectrum of defense markets, including Homeland Security.

"Cubic is now a more flexible, agile and responsive company," said Gerald Dinkel, president and CEO of Cubic Defense Applications (CDA). "We provide the complete spectrum of training that warfighters need to survive on today's battlefield, everything from live training systems and products, to training mission support, doctrine and leader development, simulation development and support and battle command training. Each element reinforces and supports the others."

At I/ITSEC, CDA is showcasing its integrated training capabilities that can help all branches of the military to succeed on the battlefield. The exhibit's theme -- "architects of joint training" -- conveys the group's thrust to provide everything from individual components and technologies to turnkey systems and services for joint, interagency and multinational forces. The company also emphasized its ability to integrate "live, virtual and constructive domains."

"Cubic owns more pieces of the `training puzzle' than any of our competitors. We are placing significant emphasis on creating a total training solution, which includes linking legacy training assets and developing new systems that help foster behaviors that win battles," said Ray Barker, CDA senior vice president of Business Development.

Barker said the group is concentrating its efforts on developing standard protocols and technologies for the U.S Army's family of Tactical Engagement Simulation (TES) systems, developing a family of mobile training products and systems that provide an environment for joint training missions among allied nations.

Examples of the group's recent successes and initiatives include:

TEAMING

One TESS: Cubic has joined Northrop Grumman's One TESS team in pursuit of the One Tactical Engagement Simulation System for the U.S. Army. One TESS is a family of Tactical Engagement Simulation systems that support Force-on-Force (FOF) and Force-on-Target (FOT) training exercises at Brigade and below, in all battlefield operating systems at home stations, instrumented Combat Training Centers and deployed sites. One TESS will develop a standard protocol for products ranging from Multiple Integrated Laser Engagement Systems (MILES), Precision TES, Aircraft TES and Land Warrior.

P5 Combat Training System: Cubic has partnered with Metric Systems Corporation on the P5 Combat Training System (P5 CTS), which will provide an improved combat training capability for the U.S. Air Force, U.S. Navy and U.S. Marine Corps. The system will provide rangeless capabilities that enable pilots to train without a fixed infrastructure. Cubic, serving as the prime contractor, will provide overall systems engineering and all the ground systems' hardware and software to support the advanced security and live monitoring requirements of the program.

JOINT AND MOBILE TRAINING EFFORTS

Alaska Training Range: Cubic will provide the first joint mobile training system for the U.S. Armed Forces to support "Cope Thunder/Northern Edge" joint training exercises in Alaska. The effort calls for the development of Alaska Mobile Units (AMUs), MILES 2000 laser-based manworn systems, and GPS-based player units that will provide near real-time tracking capabilities. The AMU is an outgrowth of Cubic's Deployable System for Training & Readiness (DSTAR) -- a mobile exercise control center that provides live simulation training and feedback on units' performance.

DSTAR AT "MILLENNIUM CHALLENGE": Cubic debuted its new joint mobile training capabilities during the recent Millennium Challenge 2002 -- the U.S. military's largest and most ambitious joint experiment to date. The event represented the first operational use of DSTAR, which uniquely allowed commanders at the Joint Forces Command at Suffolk, Va., to view the troops' movements and location on PCs -- in real time -- and also review the casualty status of the Marines as the exercise was occurring. This was made possible with Cubic's laser-based MILES 2000 system and new GPS radios mounted on vests and vehicles.

"MAPLE FLAG" JOINT AIR EXERCISES: Cubic successfully demonstrated its interoperable training capabilities at Maple Flag, one of the world's largest multinational air combat exercises held annually at Cold Lake, Canada. During the month-long event last summer, pilots from 11 countries trained in a NATO team environment using Cubic's "rangeless" Air Combat Maneuvering Instrumentation (ACMI) system. The system now provides both fully autonomous and tethered ACMI training capabilities.

NATO ACMI INTEROPERABILITY EFFORTS: Philip J. Fisch, CDA director of business development for Training Systems for the Cubic Defense Applications group, played a key role last year in the NATO effort to improve interoperability among air combat training systems. Fisch, who served as vice chairman of the Autonomous Air Combat Maneuvering Instrumentation (AACMI) Working Group, recently presented the team's findings at NATO Headquarters in Brussels, Belgium. The recommendations are the result of a yearlong study by 23 ACMI experts from 14 companies in seven countries.

NEW PRODUCT ROLLOUTS

PRECISION COMBAT TRAINING SYSTEM: Cubic is providing its new Precision Combat Training System (PCTS) for the Spanish Army's new fleet of Leopard 2E Main Battle Tanks under a contract awarded to ELCO Sistemas S.A., a company of Grupo Tecnobit. PCTS, a direct-fire weapons simulation system, is the first system of its kind that supports both precision gunnery and tactical training requirements in realistic, rugged environments. A key advantage of PCTS over older precision gunnery systems is its automatic "hunter-killer" capabilities, which allows the "attacker" to engage a second threat immediately after firing.

MSTCS DATA LINK: Cubic is developing an advanced data link for the U.S. Multi-Service Target Control System (MSTCS) program, which will improve the interoperability of target control systems at various Department of Defense test and training ranges. The data link uses programmable radio technology developed under the company's Common Data Link research-and-development program. The MSTCS data link is a spin-off from the company's new digital Tactical Common Data Link, or TCDL. Cubic's new digital Common Data Link connects airborne radar, video and imagery sensors to analysts and users on the ground or on ships.

PROGRAM DELIVERIES

AREA WEAPONS EFFECTS SIMULATOR (AWES): The Cubic-developed AWES system is now operational at the Salisbury Plain Training Area in the United Kingdom. Cubic is on track to formally deliver the UK system in mid-December, with completion of the system at the British Army Training Unit at Suffield (BATUS) in Canada to follow in 2003. AWES incorporates GPS-based position tracking with realistic, high-fidelity area weapons and direct-fire simulation effects. It features new individual soldier and vehicle instrumentation systems, and a software-based system for exercise planning, control and evaluation of force-on-force exercises.

MILES ORDERS AND DELIVERIES

MILES 2000: Cubic has received approximately $50 million in orders for its MILES 2000 laser-based training system in the past fiscal year. Recently, Cubic won MILES 2000 contracts from the Republic of Croatia and Brazil. MILES 2000 is currently being fielded by the U.S. Army, Marine Corps and Air Force as well as international forces, including the Royal Netherlands Marine Corps, Kuwait Land Forces and the UK Ministry of Defence.

OSCMAR MILES: Oscmar International Ltd, a Cubic subsidiary, was recently awarded a $10 million contract to supply laser-based combat training systems to a customer in the Asia-Pacific Region. Under the contract, Oscmar will provide MILES to Army units, combat analysis software for after-action reviews, and ongoing maintenance and support. The tactical simulators will be mounted on a variety of weapons, ranging from assault rifles and guided missiles to main battle tanks and infantry fighting vehicles.

SIMULATION SUPPORT/FORCE MODERNIZATION EFFORTS

ROMANIA SIMULATION CENTER: The Romanian Armed Forces and Cubic Corporation have opened a new Simulation Training Center in Bucharest, Romania. Cubic designed and implemented the simulation center for the Romanian Armed Forces under a four-year contract with the U.S. Army Security Assistance Command awarded earlier this year. The simulation center is the first ever for the Romanian Armed Forces. Cubic is assisting several Eastern European governments through the company's highly successful force modernization efforts.

CUBIC ANALYSIS CENTER: CDA's Simulation Systems Division has established the Cubic Analysis Center in Honolulu, Hawaii, to provide information-sharing services for military users and their international and non-government partners around the globe. The center's analysts find and collect raw "open source" data on the Internet, newspapers and other public sources. Then they verify and analyze the data to produce knowledge and real-world situational awareness for decision-makers.

The Cubic Defense Applications group, one of Cubic's two major segments, produces instrumented air and ground combat training systems, battle command training, simulations and simulation support for U.S. and allied military forces. The group also produces high technology avionics, data links and communications products for government and commercial customers, and a wide range of technical and logistics services. 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' web site at www.cubic.com.