Cubic and GE Security Introduce First Integration of Explosives Detection Capability into Public Transit Infrastructure; Innovative Ticket Vendor Result of Joint Development Agreement Focus on Comprehensive Vision for Safer Public Transit.

WASHINGTON -- Cubic Corporation (AMEX:CUB) and GE Security (NYSE:GE) this week introduced the world's first automatic public transit ticket vending machine with integrated early warning explosives detection capability -- the first element in the companies' joint vision for the future of public transit security. The new system represents the first component of the companies' joint vision for the integration of real world, technology-enabled security solutions into a wide range of automatic fare collection 'touch points.'

Shown publicly for the first time at the American Public Transit Association's annual Legislative Conference in Washington, D.C., the ticketing machine incorporates GE's innovative fingertip trace detection analyzer, the Itemiser FX, into Cubic's advanced automatic fare collection (AFC) system.

The ticket vending machine is a result of a development agreement between GE Security and Cubic Corp. announced last year that is intended to create and introduce new security solutions to help make public transit operations, facilities and passengers safer.

Cubic and GE are working with the Department of Homeland Security and transit agencies to expand the use of technology-based security solutions as part of their overall vision. Additionally, the ticket vending machine has been selected for a transit pilot program to be announced in the coming weeks.

"This ticketing machine is the first in a series of innovations we plan to deliver to help improve security and safety of public transit systems around the world," said Dennis Cooke, president, GE Security's Homeland Protection business. "Through this joint initiative with Cubic, GE expects to use its deep security expertise, and its vision for the future, to offer practical real-world security solutions to transit operators."

"With many years of experience in the transit industry, Cubic has a unique understanding of our transit customers' primary mission, which is to move people through their systems quickly, efficiently and conveniently. This first-of-a-kind explosives-detection-capable AFC systems device from Cubic and GE offers transit operators a critical layer of security that is compatible with normal transit operations," said Walt Bonneau, vice president of transit technology for Cubic Corporation.

The agreement takes advantage of GE's expertise in explosives detection and Cubic's expertise in integrated automatic fare collection systems and concept of operations to create design concepts for advanced integrated products to help make passenger travel on public transit systems safer. The companies are inviting public transit authorities to participate in the joint development activities.

"The Cubic/GE integrated explosives detection system represents an innovative application of proven technology that begins to address public transit's security challenges while minimizing patron inconvenience," said Tom Parker, manager of fare collection capital, Bay Area Rapid Transit, after viewing a recent demonstration of the system.

The first operational explosives-detection-capable ticket-vending machine was demonstrated for industry and government attendees at APTA's Legislative Conference yesterday in Washington.

About GE's Security Business

GE's Security business is a wholly owned subsidiary of the General Electric Company (NYSE:GE) focused on communication and information technologies for security, safety and lifestyle enhancements. GE Security has operations in more than 30 countries and is represented by some of the best-known brand names for intrusion and fire detection, access and building control, video surveillance, explosive and drug detection, key management and structure wiring.

GE Security was recently named Frost & Sullivan's 2006 Company of the Year for Homeland Security. For more information about GE Security and our products, please visit http://www.gesecurity.com.

About Cubic Corporation

Cubic Corporation is the parent of two major segments: transportation and defense. The Cubic Transportation Systems group is the world's leading full-service systems provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. The Cubic Defense Applications group is a world leader in realistic combat training systems, mission support services and defense electronics. For more information about Cubic, please visit http://www.cubic.com.