Cubic Technology Brings Convenient, Speedier Boarding to Chicago Transit Customers.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Nov. 27, 2002

The Chicago Transit Authority (CTA) this week announced the system-wide launch of the new high-tech Chicago Card, smart card-based fare collection technology developed by Cubic Corp. (AMEX:CUB).

Cubic installed the CTA's automated fare collection (AFC) system -- a $106 million investment -- in 1997. The system initially was based on magnetic stripe ticketing and Cubic expanded it two years ago to include smart card technology. In 2001, Cubic received a $1.5 million contract from CTA to increase the purchase of smart cards from the original 3,500 to 300,000 over the next three years.

"Now all CTA customers have a touch-and-go farecard option. This new way of boarding truly captures the meaning of `Chica-go,' as it will help speed boarding on buses and trains throughout the city," said CTA President Frank Kruesi. "The Chicago Card is a smart investment for CTA. It streamlines our operations while increasing convenience for our customers, a combination that supports the CTA operating in a fiscally responsible manner and delivering on the promise of providing a valuable and beneficial product for our customers."

The Chicago Card resembles a plastic credit card and uses smart card technology that enables customers to simply touch the card near a target on bus fareboxes and rail turnstiles, and go. The technology allows for fare balance protection, a four-year use life and greater durability than magnetic strip cards.

"This is a great day for Chicago's commuters," said Walter C. Zable, president and CEO of Cubic Transportation Systems. "Now hundreds of thousands of Chicago's commuters will enjoy the same convenience and speedy access that their counterparts in the greater Washington, D.C area have been enjoying over the past few years using their smart cards."

"The technological developments in the transit sector have allowed CTA to provide more efficient service and the Chicago Card is another example of CTA investing in system enhancements that benefit our customers," said Chicago Transit Board Chairman Valerie B. Jarrett. "We have purchased and applied technologies to improve our bus fleet, rail service and stations, internal operations and fare media. Customers can now feel secure that their farecard balances can be protected through this high-tech card."

The CTA operates the nation's second largest public transportation system and covers the City of Chicago and 38 surrounding suburbs. On an average weekday, people take 1.5 million rides on the CTA.

Cubic is installing transit systems all over the world that feature smart cards as a way to pay for transit rides. The smart cards used in Chicago incorporate Cubic's GO CARD(R) chip technology, one of several card technologies Cubic integrates in its systems. In many systems, transit authorities want the flexibility to integrate any smart card type, which led Cubic to develop the Tri-Reader(R), the first multi-card reader for transit.

GO CARD also is the foundation for the SmarTrip(R) system running in Washington, D.C., which is the nation's largest smart card program.

Cubic Transportation Systems is the world's largest provider of integrated electronic ticketing systems and has smart card contracts for public transit systems in North America, Europe and Asia.

Every year, nearly 10 billion people use Cubic systems in more than 40 major markets in cities on five continents, including London, Washington, D.C., Hong Kong, Chicago, New York, Guangzhou, Shanghai, Atlanta, San Francisco, Singapore, Miami and soon, in Los Angeles and San Diego. As part of the TranSys consortium, Cubic also supplied the entire automated fare collection system including smart cards for the London PRESTIGE project.

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