Cubic Wins $2 Million STRICOM Contract To Supply Laser-Based Combat Training System to Croatia; Technology Sale is Part of Larger Business Focus On Eastern Europe.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Oct. 7, 2002

The defense unit of San Diego-based Cubic Corp. (AMEX:CUB) has received a $2 million order from the U.S. Army Simulation, Training and Instrumentation Command (STRICOM) to provide Cubic's laser-based combat training system to the Republic of Croatia.

"This sale represents Cubic's first entry into the Croatian market," said Jeff King, program manager for the Cubic Defense Applications group (CDA). "Our company's long-standing commitment to the Eastern and Central Europe region positions us to play an important role in this new market."

Cubic's laser-based system allows troops to fire laser pulses from the same weapons they would use in actual combat. The laser "bullets" cause simulated "hits," "kills" and "misses" which are then recorded, replayed and analyzed in detail during after-action reviews in which participants evaluate their performance.

Procured for Croatia under the U.S. government's Foreign Military Sales program, the equipment is scheduled for delivery in early 2004.

Cubic has an established presence in Eastern and Central Europe due to force modernization work now being performed in the region by Cubic's Analysis and Learning Technologies Division, a Virginia-based unit of CDA. Since 1998, this division has been assisting several new NATO members and NATO aspirants with their defense modernization and reform efforts.

Today, Cubic is working with Hungary, Slovakia, Romania, the Czech Republic and Albania. In addition, several studies and analyses have been conducted in the former Soviet republics of Lithuania, Armenia and Azerbaijan.

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's Web site at www.cubic.com.