Defense Threat Reduction Agency Awards Cubic; $10.3 Million Task Order Under ID/IQ; Company to Support Department of Defense Joint Transformation Efforts.

SAN DIEGO -- The Defense Threat Reduction Agency (DTRA) has awarded Cubic (AMEX:CUB) a four-year, $10.3 million task order for technical services focused on supporting DTRA Transformation -- Joint Concept Development & Experimentation (T-JCDE) activities.

The task order was awarded under the Indefinite Delivery/Indefinite Quantity (ID/IQ) contract that Cubic received from DTRA in 2003. Cubic is one of five companies supporting DTRA's Weapons of Mass Destruction Defeat Technology initiative under the five-year ID/IQ, which has a ceiling value of $1.26 billion and a potential of five additional option years.

The initial focus for the T-JCDE support will be the U.S. Joint Forces Command (JFCOM), the Department of Defense organization spearheading national military transformation efforts, together with the other combatant commands. At JFCOM, Cubic will provide on-site assistance to the J-9 Joint Experimentation Directorate; the J-7 Joint Training Directorate, including the Joint National Training Capability (JNTC) Joint Management Office; the Joint Warfighting Center; the Joint Systems Integration Command and other offices. The support will include integrating chemical, biological, radiological, nuclear and high-yield explosives (CBRNE) weapons effects models and simulations into live, virtual and constructive computer-based simulations used in T-JCDE activities and for realistic combat training.

Cubic's Threat Technologies Division, part of the Cubic Defense Applications group, will perform the work at various Northern Virginia locations and in Suffolk, Va. The division is part of the Mission Support Business Unit of the Cubic Defense Applications group (CDA).

CDA provides realistic combat training systems for military forces, as well as mission support services for training and exercises, modeling and simulation, force modernization, leadership development, educational services, curriculum design and development, web-based learning solutions, and 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.