Korea Contract Marks First Sale of Cubic's New PC-Based Combat Training Technology.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 22, 2001

Cubic Defense Systems, a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB), announced it will use its versatile new PC-based Range Instrumentation System (PC-RIS) technology for a new combat training system for the South Korean Army.

Cubic recently signed an $18.8 million contract with SsangYong Information & Communications Corp. (SICC) of Seoul, Korea, to provide PC-RIS and other training system hardware and software for the Korean Army's Training and Doctrine Command (TRADOC). The subcontract represents Cubic's first entry into the Korean ground-range market and marks the first sale of its new PC-RIS technology.

Just introduced last year in response to increasing market demand for PC-based products, PC-RIS is a modern information processing system for combat training systems that employs personal computers and commercial software programs as its foundation. Use of commercial "off the shelf" technology and software programs gives military customers more affordability, portability and interoperability than they have with current training system architectures based on the UNIX software and workstations.

PC-RIS uses the Microsoft Windows NT/2000 platform and integrates other well-known Microsoft products including Word, Excel, PowerPoint and Microsoft Media Toolkit for video and audio. It is designed to work in conjunction with soldier instrumentation such as Cubic's Multiple Integrated Laser Engagement System -- MILES 2000 -- as well as other systems. It also features a GPS receiver integrated with the instrumentation, a data transfer system, an exercise control unit and After Action Review (AAR) units.

The AAR technology planned for Korea will incorporate both direct fire and area weapons effects simulation to allow high-fidelity combined arms and urban warfare training.

"We are excited about working with SICC and the Korean Army to customize PC-RIS to include the unique features the South Korean Army has requested," said Bruce Roberts, president of Cubic Defense Systems. "We think the PC-RIS system has enormous potential globally in the ground-range market. It will be easy and inexpensive to operate and maintain, and is also very powerful, with the capability of running two or more exercises simultaneously. No other combat training center instrumentation system in the world can do that."

Today, military customers on five continents use Cubic systems to train for combat as well as peacekeeping missions. Cubic's fiscal year 2000 combat training systems backlog includes projects in the United Kingdom, Taiwan, Canada, the Netherlands and Kuwait.

PC-RIS is leveraging existing Java technologies created by Polexis Inc., a San Diego-based Java development company, by utilizing their technology platform product called XIX(TM). The development effort is being done with a joint team of Cubic Defense Systems and Polexis engineers, effectively pairing world-class military training system knowledge with advanced Java technology expertise.