Cubic Wins Chance to Bid on Urban Warfare Training Contracts.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--June 5, 2000

Cubic Defense Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has been awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract to bid on $28 million in Army urban warfare training systems over the next three years.

The contract will enable Cubic to compete for delivery orders administered through the U.S. Army Simulation, Training and Instrumentation Command (STRICOM) for Military Operations on Urbanized Terrain/Restrictive Terrain (MOUT/RT) work.

The IDIQ award has significant long-term market potential, since it positions the company to compete on potential future MOUT contracts over the next six to 10 years.

The goal of MOUT/RT is to improve the operational effectiveness of soldiers operating in congested, urban areas -- preparing them to defend against terrorist threats, carry out peace keeping assignments and perform raids, rescue missions and other sophisticated military operations.

With the growth of cities around the world and the increased threat of terrorist incidents, there is more emphasis than ever among military leaders on the importance of training troops for "urban warfare."

These volatile close-range engagement situations will require the kind of specialized training that has become Cubic's trademark with programs such as the Multiple Integrated Laser Engagement System (MILES 2000), the world's most advanced "next generation" training system; the U.S. Army's Joint Readiness Training Center Instrumentation System (JRTC-IS) at Fort Polk, La.; and the Advanced Weapons Engagement System (AWES) currently under development for the United Kingdom.

"Our JRTC experience and current state-of-the-art developments for AWES provide us with the world's best expertise in training, tracking and gathering of data for light forces combat readiness," said Gary Washam, Cubic's program manager for MOUT IDIQ. "We are extremely excited about this opportunity to use our next-generation technology to prepare U.S. forces for 21st century combat scenarios."

Cubic Defense Systems has assembled a team of 12 small and large businesses with proven expertise and products in simulation and training to effectively assess the requirements for MOUT/RT.

Cubic is the world leader in the development and installation of state-of-the-art digital ground and air combat training systems. Over the past 26 years, the subsidiary has developed and installed more advanced combat training systems than all other companies combined.