Cubic Transportation Systems To Provide More Smart Cards to Chicago Transit Authority.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Sept. 5, 2001

The Chicago Transit Authority (CTA) has awarded a $1.5 million contract to Cubic Transportation Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), that will boost the number of Smart Cards available for distribution to Chicago riders from 3,500 to 300,000 starting early next year.

Cubic is the supplier of the CTA's integrated ticketing and automated payment system that has been operational since 1997. Initially a magnetic ticket-only system, CTA last summer began offering full-fare customers a smart card that also link CTA's bus and rail operations and neighboring suburban bus operator Pace.

Cubic supplied 3,500 cards to help CTA launch the limited "trial."

"Smart Cards last longer than our current magnetic strip Transit Cards. They also offer our customers easier access and reliability while paying their fares," said CTA President Frank Kruesi. "Our current automated fare collection system is capable of including Smart Card technology without the expense of purchasing new fare collection equipment."

The CTA vision includes expanding the Smart Card program so riders can use the same card to do their ATM banking, pay for taxis, and make purchases at retail stores, gas stations, and other transit outlets.

"We are very pleased that the CTA has awarded Cubic this contract to expand their smart card program. Smart cards are fast, convenient, and offer transit authorities tremendous potential for advanced ticketing and revenue-generating strategies beyond transit," said Walter C. Zable, president and CEO, Cubic Transportation Systems.

"Passengers like the fact they don't have to remove their cards from their wallet or purse to enter a faregate or board a bus, and for those passengers with limited dexterity and other physical disabilities, smart cards have delivered a dimension of freedom and independence that was not available before."

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., the nation's largest smart card program.

Cubic Transportation Systems is the world's largest supplier of total revenue services, including integrated ticketing and automated fare collection systems for mass transit that utilize a magnetic ticketing-based system to support the future addition of smart card systems as transit agencies expand their fare collection services. On an annual basis, at least 10 billion people pay for their mass transit rides using Cubic-designed payment systems in more than 40 markets on 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.

Cubic's magnetic ticketing technology is the foundation for many of the world's largest fare collection systems, including New York and London. Cubic also pioneered contactless fare collection for mass transit more than ten years ago. Since then, the company has integrated various smart card technologies in Europe, Asia and North America.

Cubic, which is celebrating its 50th anniversary, is the parent of two major segments, Transportation Systems and Defense. The Defense Group provides instrumented training systems for military forces, as well as avionics, data links and product logistical support, and provides battle command training, radio communications systems and field service operation and maintenance.