Cubic Wins Euro2.2 Million Contract to Deliver the Netherland's First ``Gated'' Public Transit Fare Collection System.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 20, 2002

Cubic Transportation Systems Ltd., in England, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), has received a Euro2.2 million ($2 million U.S.) contract from the Rotterdam Electronic Tram (RET) to install the Netherlands' first "gated" public transit fare collection system.

Under the contract, Cubic will provide and maintain an innovative access control system for six new stations of the Benelux Line in Rotterdam, the most recent extension of the Rotterdam metro network, which begins operation this year. The system consists of gates and a central computing sub-system.

The new system has a series of gates that allow the traveller access to the station with tram, bus card or season ticket. Data is loaded to and collected from the gates by the computer sub-system. With the new system, RET can easily obtain information regarding travel patterns which will help in planning for the transportation needs of the future. The system will provide RET several benefits including increased revenue by reducing fare evasion, the mentioned travel data and very importantly, provide added security by restricting access to legitimate passengers. This last aspect is in concert with Cubic's expansion into security access control. The design of the access system also allows RET to connect to a national electronic ticketing system. The Netherlands has plans for such a system and this contract with RET places Cubic in a good position for the future.

Cubic, the world leader in automated fare collection, is teamed with EDS, a leader in IT operation and management, on this project as well as other joint pursuits in Europe. Cubic is providing the entire system while EDS is providing operational services.

According to RET commercial director, Trix van Bennekom, "When deciding on Cubic and EDS, we chose a combination of international expertise and practical experience in order to guarantee the best possible solution for our passengers."

Ray deKozan, chairman, Cubic Transportation Systems, said, "We are pleased to be working on this, our first transit project in the Netherlands and proud that our proven expertise and reputation in the international community, especially in London, positioned us to be selected for this project. Our hope is that this is to be the first of several transit projects in the Netherlands."

Cubic is the world's largest supplier of integrated ticketing and automated fare collection systems for mass transit, including magnetic and smart card ticket media.

Every year, at least 10 billion passengers on five continents in more than 40 major markets pay for their mass transit rides using Cubic-designed payment systems. Cubic's installations include London, Washington DC, Hong Kong, Chicago, New York, Guangzhou, Shanghai, Atlanta, San Francisco, Sydney, Singapore and Miami, among others.

Cubic's other major segment, the Cubic Defense Group, provides instrumented air and ground combat training systems, battle command training simulations, and simulation support for United States and allied military forces. The Group also produces high technology avionics, data links and communications products for government and commercial customers and provides a wide range of technical and logistics services. For more information about Cubic, see the company's Web site at www.cubic.com.