Cubic to Establish Simulation Training Center in the Ukraine.

Business Editors/Political Writers

SAN DIEGO--(BUSINESS WIRE)--Jan. 27, 2004

Cubic Defense Applications, the defense segment of Cubic Corp. (AMEX: CUB), today announced it has won a contract from the U.S. Army to establish and support a simulation training center in the Ukraine. The Indefinite Delivery, Indefinite Quantity (ID/IQ) contract has a ceiling value of $4 million over four years.

Under this task order, Cubic's Simulation System Division (SSD) and Analysis & Learning Technologies Division will establish and provide day-to-day operations support for a Joint Conflict and Tactical Simulation (JCATS) Simulation Center in the Ukraine. This work includes planning, preparing and helping to run exercises; simulation center database generation; terrain data and software troubleshooting; and problem resolution.

"The creation of this new simulation center is an important step in the Ukraine's defense modernization program. It will create an important capability to examine and practice NATO standardization requirements as part of an overall transformation process," said Bob Howard, vice president and general manager of the Analysis & Learning Technologies Division.

"The award also validates the expected synergy of our new Simulation Systems Division with other Cubic divisions. It was a great team effort," Howard continued. "Cubic's Analysis and Learning Technologies Division has been performing important work in the Central and Eastern European defense communities for several years, and this award is also testimony to the success of those efforts."

Beginning in 1998 with the award of the Government of Hungary Force Modernization contract, Cubic continues to support Military Force Enhancement and modernization initiatives in a number of former communist states in Central and Eastern Europe.

The new task order was awarded by the Naval Air Systems Command (NAVAIR) Training Systems Division/U.S. Army Program Executive Office for Simulation, Training and Instrumentation (PEO STRI). It was originally awarded to ECC International Corp., which became part of Cubic last year.

The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces, as well as simulation training, force transformation assistance, educational services, operations and maintenance, and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue avionics, and radio communications for military and civil markets. Cubic Corp.'s other major segment, Cubic Transportation Systems, designs and manufactures electronic ticketing systems for public mass transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.