Cubic Wins $9.4 Million Contract to Operate U.S. Navy Flight Training Simulator In-Service Engineering Office.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--April 22, 2002

Cubic Corp. (AMEX:CUB) has received a $9.4 million contract covering the next five years to provide in-service engineering support for the AV-8B flight and maintenance training systems and KC-130 operational and instrument flight trainers at Marine Corps Air Station in Cherry Point, N.C.

The contract represents the first win for the company in the on-site software and hardware engineering business area within Navy Simulator Support.

The work will be performed by Cubic's Worldwide Technical Services division, part of the Cubic Defense Applications group. The contract is the second win this year for Cubic out of four awarded so far under a U.S. Navy flight training simulator support Indefinite Delivery/Indefinite Quantity (ID/IQ) program, wherein seven companies are prequalified to compete for contracts with a total value of more than $300 million. Since this program was initiated 30 months ago, Cubic has won $54 million of the $156 million in contracts offered.

"This new tasking will take a lot of coordination and cooperation," said Cubic Defense Applications Group President and CEO Gerry Dinkel. "We are motivated by the fact that our reputation for providing world-class service has earned us the kind of customer confidence that results in new projects. There are several In-service Engineering Office contracts coming up under the Flight Training Simulator Support program over the next several years, and we intend to win our share or better," Dinkel added.

Under its new contract, the company will begin operation of the In-Service Engineering Office this week. Cubic has carefully orchestrated preliminary personnel planning and has already been successful in getting all current on-site employees to sign up to work for the company's Worldwide Technical Services division. Cubic also plans to hire very skilled and experienced professionals in this new business area to assist in future proposal preparation.

The Worldwide Technical Services division installs, operates and maintains military aviation, surface and subsurface training systems and ground and air combat ranges at 26 U.S. sites and in seven international locations. The division also contracts with electronics and commercial customers, providing operation and maintenance services for a variety of training systems, including firefighter training.

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

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.