Cubic to Provide First Instrumented Urban Combat Trainer to the British Army.

SAN DIEGO -- The UK Ministry of Defence has awarded Cubic Defense Applications, the defense segment of Cubic Corporation (AMEX:CUB), a $4.3 million contract to provide the first instrumented urban combat trainer for the British Army.

Cubic Defense Systems Limited, a Cubic UK subsidiary, and its principal subcontractor, NSC Training Systems of Sweden, will provide the Low Level Urban Skills Trainer (LUST) at various training villages throughout the UK. The primary installation will be at Copehill Down Village, located at the Salisbury Plains Training Area.

"The system addresses the need for adequate training inside built-up urban areas, which can be among the most challenging and dangerous environments today for the individual warfighter," said David Williams, director of UK Business Development for Cubic's defense segment. "The urban trainer teaches both offensive and defensive tactics, techniques and procedures for urban operations in the most realistic environment possible. This significantly increases the chance of survival during actual combat missions."

By equipping all soldiers and weapons with electronic tags and transponders, the trainer makes it possible to accurately track the position/location of all elements involved in urban warfare -- even hand grenades.

At the heart of the system is a grid of positioning antennas, or wire loops embedded in the floors, which send out radio-frequency pulses. The electronic tags worn by the soldiers respond to these signals with their individual identification codes, allowing the system to track their position. All events, including tracking/positioning and hit/kill status, are observed in real time on a graphical presentation and recorded for after-action reviews.

LUST accurately simulates the effects of direct and area weapon engagements, including external weapon attacks. It also accurately calculates the impact of the weapon engagement through walls, ceilings and floors, and ascertains the position/location and posture of the individual and weapon pointing directions. Each individual is instrumented with a microphone, allowing voice monitoring and direct soldier-to-soldier communications during the exercise.

System deliveries are scheduled to begin in August 2005, followed by eight months of initial support. The contract also includes options for support packages for an additional seven years.

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.