Cubic Wins Major Multi-Year Contract to Provide Homestation Training Systems for U.S. Army; I-HITS Contract Has Ceiling Value of $71.7 Million.

SAN DIEGO -- The defense segment of Cubic Corporation (AMEX:CUB) has received a five-year contract to produce and field Initial - Homestation Instrumentation Training Systems (I-HITS) for U.S. Army, Army Reserve and National Guard sites. The initial award from the U.S. Army Program Executive Office for Simulation, Training and Instrumentation (PEO-STRI) totals $4.5 million and if all options are exercised the estimated value of the contract is $71.7 million.

I-HITS is a highly mobile system that offers an instrumented training capability similar to the Army's Combat Training Centers (CTCs). Packaged in transit cases, the system provides cost-effective homestation training and can be rapidly deployed to any training area worldwide for force-on-force, force-on-target, service, joint and combined training.

"I-HITS will significantly expand the Army's ability to provide the critical information for training 'lessons learned,' which has proven to be a key element in U.S. combat readiness and troop survival," said Gerald Dinkel, President and CEO of Cubic Defense Applications.

"This is the second time in four months Cubic has received a major competitive live training contract from the U.S. Army. More than two-thirds of our total defense business is dedicated to training U.S. and allied forces to accomplish their mission successfully with minimum casualties. It is a responsibility we take seriously," Dinkel said.

I-HITS is based upon modular components, providing flexibility to expand collective training activities. It is scalable for all levels of training, from platoon to battalion task force exercises, and is also ideal for urban warfare training.

The system provides exercise control, battle tracking, data collection and streamlined After-Action Reviews (AARs) for live training events. Additionally, I-HITS interfaces with current virtual and constructive simulations.

"We are very honored that the U.S. Army has selected Cubic's I-HITS solution as the system of choice for homestation and deployment training," said Ray Barker, senior vice president of Cubic's Training Systems Business Unit. "I-HITS will provide our soldiers with the best training experience possible -- anywhere they are deployed -- and ultimately assist in saving lives."

I-HITS comes packaged with player instrumentation, GPS player units and portable communications systems that are fully integrated with a software-based exercise control system. These technologies track the positions and casualty status of troops and vehicles in real time and relay exercise data to command centers for post-mission analysis and AAR presentations. With I-HITS, the AARs can be conducted in tents, Humvees, trucks or shelters at training or operational sites.

I-HITS also includes interfaces with C4ISR systems, including Force XXI Battle Command, Brigade-and-Below (FBCB2) and also easily accommodates future and emerging weapon and communication systems.

The system leverages Cubic's combat training and communications technologies developed for the Alaska Training Range Evolution Plan (ATREP) program, which will provide a joint Army and Air Force training capability on the Yukon Training Range. It also incorporates capabilities that Cubic has provided for the world's largest and most advanced CTCs, including the U.S. Army's Joint Readiness Training Center (JRTC), the British Army's Area Weapons Effects Simulator (AWES) and similar instrumented systems being installed in Canada, Australia and other nations.

The Cubic Defense Applications group, one of Cubic's two major segments, is a world leader in realistic combat training systems, mission support services and defense electronics. 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 website at www.cubic.com.