Cubic Wins $3.5 Million Contract from Edmonton Transit System; New Contract Continues Cubic's Expansion Into Mid-Size Market.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--June 11, 2002

Cubic Transportation Systems Inc., a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has received a $3.5 million contract from Edmonton Transit System, in Edmonton, Alberta, Canada, to deliver a proof-of-payment fare collection system that will be smart card-ready for light rail services.

Cubic will deliver light rail ticket vending machines and a data acquisition system to Edmonton Transit's 10 light rail stations in the third quarter of 2003.

"Edmonton Transit is excited about being a standard setter for the small-to mid size systems wanting to capitalize on the next-generation fare collection technology," said Wayne B. Mandryk, Manager of ETS. "We feel our low-risk, turnkey solution from Cubic will meet our management needs for a light rail fare payment system of today, and positions us well for the possibility to expand to a contactless smart card for bus as well."

According to Walter C. Zable, president and CEO of Cubic Transportation Systems, "There is a growing demand worldwide for smart card systems in mid-size cities. So it makes sense for Cubic to tailor and target for the mid-size city market the smart card fare collection system that we first developed for and successfully implemented in big cities. This award represents the second of its kind in recent months."

In January, Cubic won a $15.2 million contract from the Metro Council of Minneapolis/St. Paul which, when completed in two years, will represent the nation's first "smart" regional ticketing system for the mid-size market.

"Cubic's contactless smart card ticketing will give our bus and rail customers the ease of use, speed of boarding and convenience that make public transportation an attractive alternative to driving alone," said Jim Alexander of Metro Transit, who is managing the Minneapolis/St. Paul contract for the Metropolitan Council.

"Our region's first light rail line is nearly half constructed," Alexander said. "When it opens fully in late 2004, the Cubic system will already be a mainstay on our fleet of nearly 1,000 buses, and we'll have a first class fare payment system for both bus and rail."

Metro Transit is the nation's 11th largest bus system with 73.3 million customer boardings last year.

Cubic is the world's leading system integrator for electronic transit ticketing and revenue management systems. Installations include Washington, D.C., New York, Chicago, Miami, London, Singapore, Guangzhou, Shanghai and Vancouver. Cubic customers utilizing smart card systems are in North America (Washington, D.C. and Chicago, and in the future Baltimore, Los Angeles and Minneapolis-St. Paul), Europe and Asia.

Every year, at least 10 billion passengers pay for their mass transit rides using Cubic-designed payment systems in more than 40 major 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. As one of the majority shareholders in the TranSys consortium, Cubic also is supplying the entire automated fare collection system including smart cards for the London PRESTIGE project.

The corporation's other major segment, Cubic Defense Applications group, 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 provides a wide range of technical and logistics services.

Cubic's recently formed security group is pursuing opportunities to incorporate the company's proven transit smart card technology in other access control markets, such as corporate campus, data security and homeland defense.

For more information about Cubic, see the company's Web site at www.cubic.com.