Cubic Wins Contract to Help Launch New Fleet Anti-Submarine Warfare Command.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--March 4, 2004

The Commander, U.S. Pacific Fleet, has awarded Cubic Defense Applications, the defense segment of Cubic Corporation (AMEX:CUB), a $2 million contract to provide start-up support for the Fleet Anti-Submarine Warfare Command. The U.S. Navy established the new San Diego-based command to reinvigorate training and operational standards for modern anti-submarine warfare (ASW).

"Modern ASW involves integrated submarine, surface ship, aircraft and shore-based assets. Therefore, it is essential to develop comprehensive in-port and at-sea training and assessments across all naval warfare communities to address this changing environment," said Al Sargeant, a retired Navy submarine officer who is now vice president and general manager of Cubic's Information Operations Division in San Diego. "Since the end of the Cold War, ASW has been on the back burner. Emphasis is needed to offset the threat of quiet diesel-electric and air-independent propulsion submarines in the fleets of potentially hostile nations."

To assist in launching the FASWC, Cubic will provide support in the planning and implementation of staff, budgets, facilities development and information management under a multi-phased General Services Administration (GSA) contract with potential for add-on business. Cubic's ASW experienced team will assist the COMPACFLT staff as they establish the new command's standards for training, assessment and ASW doctrine. With complete staffing, the command is expected to employ 130 military, government services and contractor personnel. The majority of the staff will work at the San Diego Command, with some personnel assigned to detachments in Norfolk, Va.; and Yokosuka, Japan.

San Diego-based employees of Cubic's Information Operations Division have a significant depth of experience in submarine and anti-submarine warfare. The division currently delivers analysis, training and operational support to the U.S. Pacific Command, including operating two Honolulu, Hawaii-based information-sharing networks focused on Asia-Pacific military, political and economic issues.

Other Cubic divisions provide live training, computer-based simulation training, operational and doctrine support to the U.S. Navy, U.S. Army, U.S. Air Force, U.S. Marine Corps and U.S. Joint Forces worldwide.

Since 2001, Cubic has provided both instruction and O&M (operations and maintenance) support for Navy ASW crews training on ASW aircraft flight simulators in Jacksonville, Fla., and San Diego.

The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces as well as simulation, force modernization, educational services, operations and maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and 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. For more information about Cubic, see the company's Web site at www.cubic.com.