Cubic Transportation Systems Gets Additional Fare Gate Order from Shanghai Metro.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Sept. 20, 2001

Cubic Transportation Systems Inc., a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), received a second order to provide ticketing gates to Shanghai Metro.

The transit authority has experienced increased ridership since Cubic completed installation of the original automated fare collection system last year.

This latest order increases Cubic sales to Shanghai Metro to more than $31 million in fare collection equipment and keeps Cubic positioned to obtain more additions.

The new award follows the recent program milestone of Shanghai Metro's formal acceptance of the system for Lines 1 and 2, built under a 1996 contract. The fare collection system accepts both magnetic and smart card ticketing and is managed by a sophisticated central computer system designed by Cubic.

"We are delighted that we are developing a good relationship with our Shanghai customer that further positions Cubic to capture a larger share of the automatic ticketing systems business in a city where the urban population is one of the largest in the world," said Walter C. Zable, president and CEO of Cubic Transportation Systems.

The most advanced electronic ticketing systems in China are in Shanghai and Guangzhou, where Cubic is also the system supplier. These successful installations also position Cubic to capture other projects in China's emerging mass transit market, including Beijing, host city for the 2008 Olympic Games, which will be investing in significant transportation infrastructure. Additionally, Nanjing, Chongqin, and Tianjing plan to build major metros over the next 10 years.

"With our proven technology base and broad product line, Cubic can better serve the emerging Chinese transit market," said Zable. "Cubic can provide a more cost-effective fully integrated approach to providing commuters the kind of service they deserve in the 21st century."

Cubic Transportation Systems is the world's largest supplier of integrated ticketing and automated fare collection systems for mass transit. Every year, nearly 10 billion people use Cubic systems in more than 40 major markets in five continents, including London, Washington D.C., Hong Kong, Chicago, New York, Guangzhou, Shanghai, Atlanta, San Francisco, Sydney, Singapore and Miami among other major installations.

The company introduced the first contactless smart card ever used in mass transit in 1989. Since then Cubic has integrated various smart card technologies on several contracts in Europe, Asia, and North America, including Chicago and the Washington Metro which are the first American systems using smart card technology. Cubic also is supplying the entire Automated Fare Collection System including smart card as part of the TranSys consortium for the London PRESTIGE project.

Cubic Transportation Systems is one of Cubic Corp.'s two major segments. The Cubic Defense Group provides battle command training, instrumented training systems, avionics, data links, product logistical support and radio communication systems. For more information about Cubic, see the company's Web site at www.cubic.com.