Cubic to Develop Australia's First Air Combat Training System.

Technology is Interoperable with U.S. Systems for Joint Combat Training

SAN DIEGO -- Cubic Defense Applications, the defense segment of Cubic Corporation (Amex: CUB), is providing Australia's first-ever instrumented air combat training system under a new contract with the Royal Australian Air Force (RAAF) worth nearly $10 million.

Under this contract, Cubic is supplying Air Combat Maneuvering Instrumentation (ACMI) pods and Individual Combat Aircrew Display Systems (ICADS[TM]) in time to support a major joint training exercise in June 2007. The ACMI pods track aircraft during training missions and record aircrews' weapons actions for after-action playback on ICADS, which allows aircrews to view training events from various perspectives during debriefing. Under a separate contract, Cubic will be providing the Contractor Logistics Support (CLS) for ACMI operations at Williamtown and during deployments. The CLS contract extends through the next five years, with a contract option for another five-year period.

Australia's new air combat training system is interoperable with U.S. Pacific Air Forces (PACAF) systems to permit a comprehensive joint training program, and is also intended for deployment to multiple RAAF and joint training sites, including the RAAF's Tindal Air Base and Delamere Air Weapons Range.

The ACMI system will play an important part in the Australia-U.S. Joint Combined Training Capability (JCTC) proof of concept event during the Talisman Sabre exercise in June 2007. Spearheaded by the Australian Defence Force, U.S. Joint Forces Command and U.S. Pacific Command, with Cubic's ground combat training system, the Combat Training Capability-Live Simulation, Range Instrumentation and Information System (CTC-LIS) also playing a key role, the JCTC effort envisions networked military Live, Virtual and Constructive systems and training areas for interoperable bilateral training.

Cubic's new air combat training system for Australia satisfies not only RAAF requirements, but also contributes significantly to the Australian Defence Forces (ADF) joint training capabilities. The system also is expandable, allowing the Australians the option to build on new features such as integration with electronic warfare training.

The ACMI pods that Cubic will be delivering to Australia are of the same configuration as Cubic's Canadian ACMI system and its MOKKITS system, currently in service at U.S. bases in Japan and South Korea.

"Australia's new system consists of proven products currently supporting critical training for U.S. and allied forces," said Dianna Granum, vice president of Business Development for Readiness Systems and Cubic's Australasia Account Manager. "This will allow Cubic to deliver the equipment swiftly to meet training requirements. We are extremely excited to be able to support the RAAF and add value to their critical training missions, and look forward to a long partnership with the Commonwealth supporting ACMI operations."

Cubic Defense Applications (CDA) is one of Cubic Corporation's two major segments. CDA 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.