Cubic to Continue Warfighter Education Support for U.S. Army Combined Arms Center at Fort Leavenworth; Awarded $9.8 Million with Possibility of Four Option Years.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Nov. 25, 2003

As a result of a recent contract award, Cubic Defense Applications, the defense segment of San Diego-based Cubic Corp. (AMEX:CUB), will continue to provide warfighter education and other support services to the U.S. Army's Combined Arms Center at Fort Leavenworth, Kan.

The U.S. Army Training and Doctrine Command (TRADOC) has awarded Cubic a new $9.98 million non-personal services contract to provide educational and other support services to the Combined Arms Center (CAC). This is the first year of a five-year Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with a possible value close to $75 million. In addition to Cubic, another contractor will receive awards under that ID/IQ program. The two contractors will also be eligible for four option years for amounts at the customer's discretion. A previous five-year ID/IQ contract brought the company $49.6 million from FY 99 to FY 03.

"Winning this recompete is strategically important for Cubic," said Stan Cherrie, a retired U.S. Army brigadier general who is vice president and general manager of Cubic's Leavenworth-based Training & Education Division.

"The Combined Arms Center plays a central role in educating the Army's commissioned, warrant and noncommissioned officers, including those who are leading the global battle against terrorism," Cherrie said. "Cubic supports the CAC by enhancing the knowledge, critical thinking abilities and decision-making skills of units and leaders involved in military operations around the world. Whatever an officer's mission is -- waging war or defusing tensions - Cubic will help provide the academic and training empowerment necessary to cope with those circumstances."

As with its previous contract with the Army, Cubic's educational services support includes development of traditional classroom curriculum, and in some cases Cubic employees who are retired military personnel will teach courses. Cubic will also provide live, Web-based, CD-ROM and computer-based simulation training.

"The new contract is a natural progression from the existing CAC contract which included doctrine, training, leader development and recommended policies and procedures for both combat and stability and support operations," said Kent Ervin, CAC program manager for Cubic.

The ID/IQ contract authorizes the Army to issue task orders for support of the Intermediate Level Education (ILE) course which all Army field grade officers are required to take during their career. The current ILE course, developed with Cubic's help, is designed to prepare field-grade officers to operate in today's operational environment. Study topics include: military history; leadership; combined arms tactics and techniques; peace, counter-terrorism, peacekeeping, nation assistance, counterdrug and joint multinational operations; digitized skills and information operations. Cubic may receive task orders for ILE support under this contract as well, if such orders are issued.

Under the previous contract, Cubic was responsible for developing the Commander's Force Protection Handbook for anti-terrorism operations. The Force Protection Handbook, delivered in both hard copy and interactive CD-ROM versions, deals with vulnerabilities, prevention, reaction, consequence management, and military support to civil authorities.

In addition, Cubic developed and executed major exercises for the Army, National Guard and civilian agencies with scenarios involving terrorist events and the threat of weapons of mass destruction (WMD). Cubic developed a complete training support package and train-the-trainer courseware for WMD and terrorism events.

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.