DARPA Selects Cubic to Develop Advanced Optical Technologies.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 26, 2004

Cubic Defense Applications, the defense segment of Cubic Corporation (AMEX: CUB), has been selected by the Defense Advanced Projects Research Agency (DARPA) to develop the powerful new Dynamic Optical Tags (DOTs) laser-based military optical tag system.

The $1.8 million R&D contract from DARPA represents a first phase of DOTS research and development. The scope of work includes defining systems requirements, electro-optical and mechanical design, lab and field-testing and software development. Options two and three, if awarded, could have a full contract value of approximately $13 million.

"Extensive internal research efforts focused on optical communications, and our substantial development and production experience with laser technologies have given Cubic a head start on the DOTS program," said Arthur Tuckman, vice president of Advanced Technology for Cubic Defense Applications. "This is a strategic project for Cubic and we are looking forward to working with DARPA to create an important new tactical system for the U.S. military."

"This contract breaks new ground for Cubic in the tactical world," said Deepak Varshneya, Ph.D., a Cubic senior staff scientist and project leader for the DOTS effort. "Cubic is well known for developing laser-based live training systems and laser equipment for precision gunnery training. This contract offers the company an opportunity to apply its extensive engineering skills to solve a difficult tactical challenge."

Cubic was one of 19 companies invited to bid for the DOTs program. Other relevant Cubic electro-optical programs include the MILES 2000 laser-based combat training system, a new Precision Combat Training System, which allows tank crews to use laser technology for precision gunnery practice, and an optical combat identification system (O-CIDS) concept for reducing fratricide during tactical operations.

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 Corporation'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 website at www.cubic.com.