Cubic Wins Army/National Guard Service Contracts Totaling $2 Million.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Oct. 29, 2002

San Diego-based Cubic Corp. (AMEX:CUB) has won two new service contracts totaling $2 million to help the U.S. Army plan and coordinate force transformation efforts in Alaska and assist the Utah Army National Guard in establishing a new simulation training center.

"The Army is transforming from a Legacy Force to an Interim Force, and ultimately to the Objective Force," said Mike McCarthy, program lead in charge of Cubic's new contract with the U.S. Army Training and Doctrine Command (TRADOC) for force transformation in Alaska. "As a longtime provider of educational, training and simulation support services to the U.S. military, Cubic is proud to be part of helping the Army build the fighting force it needs for warfare in the 21st century."

Under the $1.25 million contract, Cubic will help transform the 172nd Separate Infantry Brigade at Fort Richardson and Fort Wainwright, Alaska, into the 172nd Stryker Brigade Combat Team. Cubic's experts will work with the Brigade Coordination Cell - Forward (Alaska) and the Brigade Coordination Cell at Fort Lewis, Wash., to accomplish the work in accordance with the Army Transformation Campaign Plan.

"The Alaska contract shows Cubic's continued strength in a strategically important area of military education and training: force transformation," said Glenn Marsh, vice president and general manager of Cubic's Battle Command Training and Education Division in Leavenworth, Kansas, the unit of Cubic's Defense Applications group that received the contract.

"Cubic will be serving as TRADOC's expert advisor to the Chief of Brigade Coordination Cell - Forward (Alaska) and key commanders and staff on setting long- and midrange goals and priorities for the new Stryker Brigade Combat Team," Marsh said. "We will play an important role in developing requirements for virtual, constructive and live, fire and maneuver training to ensure that the Army accomplishes its objectives. We're excited about being able to help lay the training foundation for the new Stryker team."

The Stryker Brigade Combat Team (SBCT) is so named because it will be equipped with the Stryker, a new multi-wheeled armored vehicle designed for airlifting to global engagements that require a quick-reaction, medium-weight force. McCarthy said an important component of Cubic's work will be to develop and formulate policies, objectives, plans, programs and procedures relating to SBCT new equipment fielding and training, unit fielding operations, maintenance and logistics. This will involve scheduling and supporting Battle Simulation and Training Support Center operations, the Army Schools program, and individual training and evaluation programs. Cubic will also assess work in progress and completed work to measure the results obtained.

The Alaska contract is part of a broad business presence in that state for Cubic, a leading global supplier of air and ground combat training systems. Cubic recently completed an upgrade of the U.S. Air Force's Alaskan Air Combat Maneuvering Instrumentation System (ACMI) and is providing instrumentation and communications systems used to track air and ground participants in joint services exercises such as Cope Thunder and Northern Edge.

Cubic's Battle Command Training and Education Division in Leavenworth also won a $750,000 contract with the Utah Army National Guard (UTARNG). Under that contract, a team of Cubic experts will create and operate a constructive simulation training center to train National Guard units throughout Utah. Cubic will provide the functional and technical skills necessary to support and conduct joint conflict and tactical battle simulation exercises. The simulations and battle simulation exercises will serve to prepare the Utah National Guard response to natural and manmade events such as floods, earthquakes, tornadoes, wildfires, Weapons of Mass Destruction, chemical spills and other emergency management operations.

According to Program Lead Mike McCarthy, the Utah National Guard Battle Simulation Center is also designed to reduce the time soldiers spend going to and from training.

"We have designed and staffed the facility to be completely portable, so the Cubic team can move to training unit locations throughout the state and conduct the simulation training at home station," he said.

Cubic began work on both the Alaska and Utah contracts in late September.

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