Cubic to Display Latest Combat Training and Tactical System Technologies at U.S. Army's Annual Convention.

SAN DIEGO -- The defense segment of Cubic Corporation (AMEX:CUB) will display its latest combat training and tactical system technologies geared to joint, urban and network-enabled warfare at the Association of the U.S. Army's annual meeting. AUSA 2005, which begins today in Washington, D.C., is the world's largest land-power forum.

"With so much of our business related to land combat, AUSA is a premier venue to highlight Cubic's growing presence in intelligence, surveillance and reconnaissance markets -- and also demonstrate our extended leadership in the area of combat training," said Gerald Dinkel, president and CEO of the Cubic Defense Applications Group.

"Our advanced systems are designed to provide a joint, interoperable, seamless environment across the spectrum of operations. They also comprise smaller, lightweight components to support on-demand training and tactical missions," Dinkel said.

Cubic's booth will showcase its diverse offerings from its four principal business areas: Combat Training Systems, Mission Support Services, Communications & Electronics and Tactical Defense Systems. Highlights include:

TACTICAL DEFENSE SYSTEMS

O-CIDS Optical Combat Identification System -- O-CIDS is a highly secure combat identification system that uses eye-safe lasers to help avert incidents of fracticide or "friendly fire" among ground troops, vehicle crews and aircraft. O-CIDS provides the shooter with information about the target (friend or foe) and also provides the range to the target with a low probability of detection, interception or jamming. Cubic was recently funded by the U.S. Army Communications-Electronics Life Cycle Management Command to integrate O-CIDS into a major field exercise being held this month.

COMMUNICATIONS & ELECTRONICS:

J2000 High-Speed Jammer and Signal Collection System -- The advanced J2000 Surgical Reactive Jammer is specifically designed to address fast moving, suddenly occurring signals from enemy emitters. J2000 uniquely detects and jams current and future threats without affecting "friendly" communications.

ISR Data Link Portfolio -- Cubic's comprehensive data link products allow troops and commanders to obtain real-time images and data -- on land, air and sea -- to precisely locate and identify enemy targets. Cubic's advanced data links are modular, lightweight and cost-effective; provide spectrally efficient waveforms up to 274 Mbps; and feature adaptable configurations for UAVs, manned fixed wing, rotary wing, shipboard and ground-based platforms. Data links on display include:

--DCDL-1000 HF Non-Line-of Site Data Link -- The power of NLOS communications will be demonstrated via a laptop and camera mounted on the booth. This new HF data link transceiver uses a cognitive radio with improved anti-jam communications, which allows networked communications between the data link units and receiving stations. DCDL-1000 is compact, cost-effective and reliable -- even in adverse weather conditions. It provides NLOS communications up to 20 km for ground communications and up to 50 nm from airborne platforms.

--Man-Portable Tactical Common Data Link (TCDL), which can be hand-carried by two people and easily installed in any environment. The system comprises a compact TCDL carried inside a UAV, as well as a mini antenna system and rugged laptop for land forces. The entire system provides unique video streaming and remote-control capabilities, allowing the foot soldier to control the camera angles inside the UAV to identify and track enemy positions -- and view the resulting video in real time on their laptops.

--WATCHKEEPER TCDL -- The Man-Portable system is based on the Tactical Common Data Link that Cubic is providing for the UK's Ministry of Defence (MoD) WATCHKEEPER program -- the most significant UAV program in Europe. Cubic's TCDL will enable Watchkeeper to transfer time-critical information to commanders and staffs at the tactical level from multiple UAVs operating in the same geographical area, without mutual interference.

LIVE COMBAT TRAINING

I-HITS Homestation and Mobile Training -- The Initial-Homestation Training System, or I-HITS, provides high-fidelity Combat Training Center training capabilities for soldiers at homestations and while deployed. Cubic is providing I-HITS for the U.S. Army under a five-year contract potentially worth $71.7 million. I-HITS provides turnkey training capabilities -- ranging from mission planning and rehearsal to objective assessments -- in a highly mobile, cost-effective package. It is adaptable for any mission, including force-on-force, urban, joint and combined exercises. I-HITS is also scalable for all levels of training, from squad through brigade.

MILES IWS Engagement Simulation -- The U.S. Army's next-generation Individual Weapons System, or IWS, is a laser-based Tactical Engagement System that builds on the company's successfully deployed MILES 2000 system. MILES IWS features superior, accurate performance; smaller, lightweight components; and a cost-effective, user-friendly design. Cubic is providing MILES IWS under a five-year $113 million contract from the U.S. Army's PEO STRI. The first sites to field MILES IWS are the National Training Center (NTC) at Fort Irwin, Calif., and the Combat Maneuvering Training Center in Hohenfels, Germany.

PCTS: Precision Combat Training System -- This advanced precision gunnery system is a next-generation, state-of-the-art simulation system that can be used for both basic gunnery training and force-on-force exercises in rugged environments. PCTS develops armored crews' gunnery techniques using eye-safe laser ammunition and maneuvering targets, while providing the highest level of accuracy, realism and fidelity possible. Cubic is providing PCTS for the Spanish Army as well as the Canadian Armed Forces as part of the Weapons Effects Simulation (WES) combat training system.

VIRTUAL SIMULATION

EST 2000 Marksmanship Training -- Cubic's Simulation Systems Division will feature an interactive demo of its Engagement Skills Trainer (EST 2000) -- the only small arms training system validated by the U.S. Army Infantry School. EST 2000 teaches marksmanship skills, squad-level collective defense and judgmental "shoot-don't-shoot" tactics. The system allows trainees to shoot laser bullets from actual weapons at simulated enemies on a high-resolution, three-screen display. The highly realistic scenarios feature a wide range of environments in all weather and light conditions. EST 2000 currently is being deployed for the U.S. Army's Initial Entry Training for Basic Rifle Marksmanship skills, which is required for all new soldiers entering the Army.

Warrior Skills Trainer (WST), an enhancement to EST 2000, expands the system's capabilities to practice marksmanship -- either on foot or in a moving vehicle. This enhancement was designed to prepare soldiers to better cope with the weather conditions, convoy attacks and judgment issues that arise in today's combat environments. WST was installed this year at the Battle Command Center at Fort Lewis, Wash. Cubic is currently working with several other civilian and military installations to add this key upgrade to their existing EST 2000 systems.

Operations and Maintenance Trainers -- The company will highlight its work in the area of virtual operations and maintenance trainers, which replicate the actual operational environment of today's aircraft and vehicle platforms. Cubic has seen steady orders for the trainers, including Expeditionary Fighting Vehicles and the U.S. Air Force's F-16C aircraft maintenance trainers. The trainers allow crews to enhance and maintain their skills -- without reliance upon actual engines -- and improve the turnaround time required for maintenance.

MISSION SUPPORT & CONSTRUCTIVE SIMULATIONS

Cubic provides mission-critical support for computer-based simulations and live training exercises -- ranging from small-unit training to multinational combined and joint missions. For more than 35 years, the company has been a prime contractor for more than 35 military training and simulation support facilities, including the Joint Readiness Training Center (JRTC) at Ft. Polk, La., and the U.S. Army's Simulation Centers at I Corps, Fort Lewis, Wash., Fort Leavenworth, Kansas, and in Europe, Korea and Japan. Additionally, Cubic serves as the training support contractor for the JFCOM Joint Warfighting Center and provides exercise support for the National Training Center in Fort Irwin, Calif., the Marine Air Ground Task Force Staff Training Program, known as MSTP, and the Korean Battle Simulation Center.

TRAINING & EDUCATION

Cubic is a leader in applying advanced learning technologies to training, education and leader development programs. The company's learning management services include strategic planning, curriculum design and development, computer-assisted training courses and emergency management training programs. Training courseware ranges from traditional and interactive multimedia instruction to web-based distance learning programs. Cubic's experts train at all echelons and all levels, from small units to thousands of participants.

Cubic Defense Applications, 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.