Cubic Wins Major Contract to Support Air Combat Training Missions in Asia-Pacific Region; U.S. Air Force Contract Has Potential Value of $54 Million over 10-Year Period.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--April 6, 2004

Cubic Defense Applications, the defense segment of Cubic Corporation (AMEX:CUB), has won a contract with a potential value of $54 million to provide full-service support and equipment for Pacific Air Forces (PACAF) air combat training missions. The Operations and Sustainment (OS) contract, awarded by the U.S. Air Force, includes an initial six-month base period of $2.2 million and nine one-year options.

Under the contract, Cubic will have complete responsibility for the performance of the Misawa-Osan-Kunsan-Kadena Instrumentation Training System (MOKKITS). This includes management, labor, hardware and software systems, engineering and maintenance for the system.

MOKKITS supports training at Kadena AB and Masawa AB, Japan; Osan AB and Kunsan AB, Korea; and other locations within the PACAF area of operations. The system supports single-service, bilateral, joint and combined forces missions.

The system builds on the technologies Cubic developed for the Kadena Instrumented Training System, or KITS, which went operational in 1997 with the 18th Air Wing at Kadena Air Base, Okinawa. KITS was the U.S. military's first GPS-based rangeless air combat training system.

The MOKKITS contract calls for a 300 percent increase in aircrew debriefing support over the original KITS contract.

"We are extremely pleased to continue our association with PACAF and support the vital training of U.S. and allied forces," said Don Jacobs, vice president of Cubic's Air Combat Training Programs. "I'm also very proud of the Cubic employees whose efforts have laid the groundwork for our success."

MOKKITS is completely portable, allowing training flights to be flown anywhere there is suitable airspace, over land or sea. At the heart of the system are the instrumentation pods, typically mounted on a wingtip weapon station, which contain electronics that record and calculate simulated firings of weapons and "kill" messages. The information can be viewed in near real-time via a data link to the ground-based display systems.

"The system simulates combat missions as close as possible to the 'real thing' in a variety of scenarios. This gives our forces the skills they need to survive actual combat," said Keith Shean, senior program manager for MOKKITS.

The MOKKITS system also supports exercises at temporary sites in Singapore (Commando Sling), Guam (Cope North); Thailand (Cope Tiger); as well as Large Force Exercises and Dissimilar Air Combat Training.

Work on the contract will begin immediately.

The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces as well as simulation training, force transformation assistance, educational services, operations and 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. Cubic Corporation's other major segment, Cubic Transportation Systems, designs and manufactures electronic ticketing systems for public mass transit authorities. For more information about Cubic, see the company's website at www.cubic.com.