Cubic Wins $24 Million Flight Simulator Training Contract.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--July 3, 2001

Cubic Worldwide Technical Services (CWTS), a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has been awarded a $24 million contract to provide flight simulator instruction at seven military installations on the East Coast.

Under the new contract -- awarded by the Naval Air Warfare Center Training Systems Division (NAWCTSD) in Orlando, Fla. -- Cubic will provide simulator training to crews at seven locations for 13 different aircraft. The scope of training will include fighters, interceptors and ground support; surveillance and anti-submarine warfare (ASW); in-flight refueling, cargo transport and transfer; and attack, ASW and transport helicopters.

Cubic will provide simulator instruction at Naval Air Station (NAS) Oceana, Va., NAS Norfolk, Va.; NAS Jacksonville, Fla., Naval Station Mayport, Fla.; Marine Corps Air Station (MCAS) Cherry Point, N.C.; MCAS New River, N.C; and MCAS Beaufort, S.C.

Richard D. Koon, president and CEO of Cubic Worldwide Technical Services, said winning the Contract Simulator Instruction -- Atlantic (CSI-LANT) task order was a major victory for the company. CWTS became eligible to compete for the contract more than a year ago, when the Navy selected Cubic to join a seven-company bidding pool for Fielded Training System Support (FTSS) contracts. CWTS subsequently was awarded three contracts to provide operations and maintenance and simulator support at sites in Europe, Japan and the United States.

"With the latest award, Cubic has now won four out of 11 FTSS contracts we've bid over the past 18 months," Koon said. "Our good success rate is due to our experience and excellent support to our customers. Because we have developed the procedures, management structure and communications systems necessary for effective support of our contracted training sites, we are always exceeding our customer's performance expectations."

Koon said that Cubic's CSI-LANT bid was determined to be the best value based on proposed staffing, contingency planning, cost and "an exemplary history of providing excellent support to NAWCTSD for simulator instruction in numerous locations."

Koon said Cubic will now turn its attention to hiring more than 100 instructors for the seven contract sites, with preference given to fully qualified and flight-certified former active-duty Navy and Marine Corps personnel.

Cubic Worldwide Technical Services, a member of the Cubic Defense Group, supports, installs, operates and maintains military aviation, surface and subsurface training systems, and ground and air combat ranges around the world.

The Cubic Defense Group, one of the corporation's two major segments, provides instrumented training systems for military forces, as well as avionics, data links and product logistical support.

Cubic's other major segment, the Transportation Systems Group, designs and manufactures automatic revenue collection systems for public transit projects throughout the world, including rail, bus and parking lot systems.

In addition to historical matters, this release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements involve predictions of future results. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the company's business and prospects. These include the effects of politics on negotiations and business dealings with government entities, economic conditions in the various countries in which the company does or hopes to do business, competition and technology changes in the defense and transit industries, and other competitive and technological factors.