Cubic Wins $5.5 Million Contract to Upgrade Chicago Transit Authority's Central Computing System.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Jan. 24, 2002

Cubic Transportation Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has received a $5.5 million contract to upgrade the central computing system and infrastructure for the Chicago Transit Authority (CTA), the nation's second largest public transportation system and the second in the U.S. to implement smart card technology.

The total value of the contract could reach $6.25 million if all options are exercised.

Cubic is the provider of the CTA's high-tech electronic fare collection system that links all rail and regional bus operations to a single magnetic ticket or "touchless" smart card. The CTA launched a limited "trial" of 3,500 Cubic-supplied smart cards in 2000. Last September, CTA awarded a contract for Cubic to supply an additional 300,000 cards, which will be phased in by the CTA over the next two years.

The central system acts as the "brains" of the CTA's fare collection operations, integrating and linking all rail and bus fare equipment to a central source for revenue and data management. Cubic will upgrade station-level computers throughout the CTA's 143 rail stations to ensure seamless data upload and download operations with the central system.

"These enhancements will ensure the CTA's fare collection system continues to be powered by a high-performance, high-reliability central system," said Walter C. Zable, president and chief executive officer, Cubic Transportation Systems. "Not only will our system have the processing power and storage to easily handle the CTA's transaction volume today, but it will have the reserved capability to support several years of sustained annual ridership growth, consistent with the CTA's objectives."

The central system's expansion will include more powerful reporting and distribution tools that will position the agency to take advantage of more advanced fare collection technologies that the CTA may add in the future. The upgrade is scheduled for completion by this summer.

Cubic Transportation Systems is the world's largest supplier and system integrator of integrated electronic ticketing systems and has smart card contracts for public transit systems in North America, Europe and Asia. Recently, the company added a security group to expand its smart card technology into non-transit uses including security and access control.

Every year, nearly 10 billion people use Cubic systems in more than 40 major markets in cities on five continents, including London, Washington, D.C., Hong Kong, Chicago, New York, Guangzhou, Shanghai, Atlanta, San Francisco, Singapore and Miami. As part of the TranSys consortium, Cubic also is supplying the entire automated fare collection system including smart cards for the London PRESTIGE project.

Cubic Transportation Systems Group is one of Cubic Corp.'s two major segments. The Cubic Defense Group provides battle command training, instrumented training systems, avionics, data links, product logistical support and radio communication systems. For more information about Cubic, see the company's Web site at www.cubic.com.