Cubic Wins Navy UAV Services and Support Contract; Current Capabilities Provide Starting Point for Takeoff into Strategic New Area.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 13, 2004

The Naval Air Systems Command (NAVAIR) has awarded the defense segment of Cubic Corp. (AMEX:CUB) a five year, $5 million contract to supply instructional services and maintenance support for the Navy's Pioneer Unmanned Aerial Vehicle (UAV) program.

The new contract will include classroom instruction, systems operator instruction and systems maintenance for the Pioneer UAV and its ground control system at Navy Outlying Field Choctaw in Milton, Fla.

Cubic's Worldwide Technical Services Division (WSTD), part of the Cubic Defense Applications group, received the award under the Indefinite Delivery, Indefinite Quantity (ID/IQ) contract that it won from NAVAIR in 2000. The ID/IQ prequalified Cubic and a half-dozen other contractors to compete over a 10-year period for Navy Fielded Training Systems Support business.

Kevin Hayes, vice president of Range Programs and deputy general manager for WSTD, said Cubic's past and current experience with naval aviation will ensure a quick response capability for technical direction and problem resolution.

"The Worldwide Technical Services Division has more than 70 technicians at five different locations along the East Coast performing operation and maintenance of flight simulators," Hayes said. "Besides this extensive network of potential on-call personnel, we can also draw upon the experience of military training professionals throughout the Cubic Defense Applications group."

"UAVs will play an important role in the future of the U.S. military operations, and we are proud to help the Navy train and maintain the technology in this important new tactical area," added Cubic Program Manager Harold Carlisle. "We think this contract will open a lot of doors for us."

Cubic is scheduled to take over UAV program support at NOLF Choctaw in June 2004.

In an operational setting, Marine Air Ground Task Force (MAGTF) commanders and Navy Battle Group commanders use Pioneer UAVs for real-time intelligence imagery for maritime, amphibious and ground combat operations.

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.