Cubic to Promote Latest Training and Communications Technologies at Farnborough International Air Show.

SAN DIEGO & LONDON -- The defense segment of Cubic Corp. (AMEX:CUB) is participating in the 2004 Farnborough International Air Show with a display of its latest air combat training technologies, data links for manned and unmanned aerial vehicles (UAVs) and United Kingdom business initiatives that address the issues of adaptability, interoperability and joint and combined arms training for British forces. Farnborough International, which runs July 19 through 25 in the United Kingdom, is the world's largest international showcase for aerospace equipment and technology.

"Cubic's participation at Farnborough demonstrates our commitment to the security of our NATO allies and other potential coalition partners," said Gerald Dinkel, president and CEO of Cubic Defense Applications. "Our exhibit illustrates the development of new technologies that address high-priority requirements for standardization and interoperability in training and tactical communications for network-centric and network-enabled capability."

At Farnborough, Cubic will highlight its new developments and program milestones, including:

DATA LINKS

    -- Tactical Common Data Link: Cubic's interoperable TCDL is a
contender in the UK's 800 million (GBP) WATCHKEEPER program.
WATCHKEEPER will provide UK armed forces with essential Intelligence,
Surveillance, Target Acquisition and Reconnaissance (ISTAR) capability
based on a tactical unmanned air vehicle (UAV) system. 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.

    -- Navy Communications Data Link System: In the U.S., Cubic is
developing a next-generation data link for the Navy that is faster,
lighter and more cost-effective than current shipboard systems in use
today. The Navy CDLS features the complete family of waveforms needed
to communicate with U.S. Air Force, Army and coalition aircraft
sensors in a network-centric matter. Cubic is developing the Navy CDLS
under a major contract from the U.S. Navy's Space and Naval Warfare
Systems Command, or SPAWAR.

    AIR COMBAT TRAINING

    -- Exercise Maple Flag: In the area of air combat training,
Cubic's next-generation CF-18 ACMI system helped sharpen the tactical
skills of 13 NATO air forces during Exercise Maple Flag 2004 -- one of
the world's largest multinational exercises dedicated to combined
operations training. The month-long event, which ran May 3 to June 11
at Cold Lake AB, Alberta, Canada, allowed NATO air forces to train
jointly in a realistic simulated air combat environment. The exercise
officially was the largest Maple Flag to date.
    -- MOKKITS Pacific Air Forces Training: With the award of an
operations and sustainment contract, Cubic has complete responsibility
for the Misawa-Osan-Kunsan-Kadena Instrumentation Training System, or
MOKKITS, which supports single-service, bilateral, joint and combined
forces missions. Under the contract, Cubic will provide full-service
support and equipment for the system. This includes a three-fold
increase in capability compared to the original Kadena Instrumentation
System (KITS) that Cubic delivered in 1997.
    -- ICADS - Individual Aircrew Display System: A key component of
the MOKKITS aircrew debriefing system is Cubic's ICADS. This PC-based
system allows pilots to monitor, control and debrief their missions on
standard computers, laptops or in a theater environment. It provides
accurate and versatile views of the simulated battle in real-time,
including more than a half dozen 3-D graphical representations.
    ICADS is operational at various U.S. and international air combat
training sites, including the UK, the Netherlands, Alaska, Canada
("Maple Flag") and Nellis Air Force Base ("Red Flag"), which supports
large-scale exercises for U.S. and coalition training.
    -- P5 Combat Training System/Tactical Combat Training System:
ICADS is a major component of the P5 CTS/TCTS program. This
significant program will provide next-generation air combat training
technology that enables U.S. Navy, Marine Corps and Air Force Units to
train together with coalition partners. It is a rangeless air-to-air,
air-to-ground and surface-to-air combat training system that features
real-time training without the need for a fixed range. Cubic and its
principle subcontractor, DRS Technologies, are providing P5 to
approximately 27 training ranges in the U.S., Europe and the Pacific
region over a 10-year period.

    UK INITIATIVES

    -- Area Weapons Effects Simulator (AWES): At Farnborough, Cubic
will promote its expansion plans for AWES -- the most advanced combat
training system of its kind. Developed for the British Army, AWES is
designed to support joint and combined arms training. Future plans for
AWES include modifications for the Bowman radio communications system;
integration of Watchkeeper UAVs; future interoperability with fixed
wing and rotary wing aircraft; integration of deployable exercise
control systems; expansion of urban operations training capabilities;
and integration of live, virtual and constructive simulation at AWES
to expand the battlespace for digitized forces.
    The Cubic-developed AWES system is operational at the Salisbury
Plain Training Area in the UK and the British Army Training Unit at
Suffield in Alberta, Canada. AWES incorporates position tracking with
realistic, high-fidelity area weapons and the MILES 2000 direct-fire
weapon effects simulation for dismounted soldiers. It features new
individual soldier and vehicle instrumentation systems, and a
software-based system for exercise planning, control and evaluation of
force-on-force exercises.

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.