Cubic Wins $4 Million Award to Provide Data Link For Military Weapon System Testing and Training.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--May 20, 2002

The U.S. Air Force has awarded Cubic Corp. (AMEX:CUB) a $4 million contract to develop an advanced, two-way data link that will dramatically improve data communications among the military's weapon system testing and training products.

The radio frequency link -- based on Cubic's breakthrough Tactical Common Data Link (TCDL) technology -- will be at the heart of the Multi-Service Target Control System (MSTCS). The tri-service MSTCS program will improve the interoperability of target control systems at various Department of Defense test and training ranges.

Target control systems allow troops to fire their actual weapons at aerial and surface targets, or "drones," such as unmanned aircraft and tanks, in realistic operational scenarios. The drones may operate autonomously or remotely by personnel at ground control stations. Cubic will provide the data relay between the targets and control stations.

"This is a strategically important win for Cubic, because it represents our first entry into the weapon system testing and training market," said Gerald Dinkel, president and CEO of the Cubic Defense Applications group. "It also represents the first sale of our TCDL technology, which builds on the success of our Joint Surveillance Target Attack Radar System (Joint STARS) data link."

For MSTCS, Cubic will develop a Data Link Transceiver (DLT), which allows high-performance communications between multiple targets and ground control stations. The contract, awarded by the Air Force Materiel Command, Air Armament Center at Eglin AFB, calls for the development of 10 prototype DLTs. If all options are exercised, the total award will exceed $8 million and include more than 100 data link transceivers.

"This award indicates strong customer confidence in Cubic, which has been a long-standing, reliable supplier of Air Combat Training Systems to the Air Force," said Philip J. Fisch, Business Development director for Cubic's Training Systems. "The award also opens up new business opportunities for us -- not only in the Air Combat Training Systems product area -- but also for the instrumented test and training market."

David Moehle, program manager and project engineer for the DLT, noted that Cubic's TCDL was developed under an internal research-and-development and was proven in tests conducted by the Joint Interoperability Test Command.

The MSTCS data link will be a modified version of the TCDL, a digital Common Data Link designed to transfer radar images and data from manned and unmanned aerial vehicles to Navy ships and Army ground stations. It is smaller and less expensive than current common data links. The TCDL uses commercially available components and is fully interoperable with other data link systems.

Cubic currently provides the jam-resistant Surveillance and Control Data Link (SCDL) for Joint STARS, a sophisticated battlefield management system that allows US and NATO commanders to look behind enemy lines and obtaining intelligence and targeting data. Cubic is also providing a similar broadcast data link for the UK's Airborne Stand-Off Radar System.

The Cubic Defense Applications group, one of Cubic's two major segments, 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 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' Web site at www.cubic.com.