Cubic Wins 10-Year $525 Million Contract to Develop Next-Generation Air Combat Training System; System to Support U. S. Air Force, Navy, Marine Corps and Air National Guard Forces.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--June 6, 2003

Cubic Defense Applications, the defense segment of San Diego-based Cubic Corp. (AMEX:CUB), today announced it has won a 10-year contract with a ceiling value of $525 million to develop and deliver the next-generation rangeless air-to-air and air-to-ground combat training system.

Under the P5 Combat Training System (P5CTS) indefinite delivery, indefinite quantity contract, Cubic will be the single contractor providing new technology for a total of 27 Air Force, Navy, Marine Corps and Air National Guard training ranges in the U.S., Europe and the Pacific. IDT Metric Systems is a major subcontractor, providing the airborne instrumentation to collect and process in-flight data for post mission debrief.

With P5CTS, the Navy will be able to conduct at-sea instrumented training from aircraft carriers for the first time. An initial $8 million to $10 million delivery order is expected to be awarded immediately.

"P5CTS continues Cubic's 30 year legacy as the world leader in air combat training. The broad scope and 10-year duration of this contract provide the opportunity for new technology insertion and capability expansion as additional training requirements emerge," said Gerald Dinkel, president and CEO of Cubic Defense Applications. "This system will significantly increase U. S. training effectiveness and, importantly, will improve the ability of our forces to jointly train with coalition partners."

As the prime contractor, Cubic will provide overall program management, systems engineering and integration, as well as ground processing, display and debriefing. A key element of P5CTS is Cubic's Individual Combat Aircrew Display System (ICADS), which allows pilots to debrief training missions on PCs or laptop computers.

"The system includes a long-range datalink, allowing the exercise to be monitored and controlled on the ground or from the aircraft carrier, even before the actual debrief," said Philip J. Fisch, Cubic's director of business development for training systems.

Cubic Defense Applications, one of Cubic Corp.'s two major segments, provides realistic combat training systems for military forces, as well as simulation, force modernization, educational services, operations & maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue avionics and radio communications for military and civil markets. The corporation's other major segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit authorities.