New HF Communications Orders Signify Growth in this Market for Cubic.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Jan. 15, 2004

Cubic Corporation (AMEX:CUB) said its Cubic Defense Applications subsidiary has seen a steady increase in orders for its high frequency (HF) communications products -- such as power amplifiers, transmitters and receivers -- over the past year. The company attributes the growth to the need for Government and civilian agencies to upgrade older communications systems, particularly as the nation and allied countries focus on combating terrorism at home.

In recent months, Cubic has received orders totaling roughly $7 million for its HF Communications Systems from several customers, including AirServices Australia, Rockwell Collins in the U.K. and Samyung Electronics in South Korea, which is providing shipboard communication systems for the Korean Navy.

"HF communications will remain a vital part of the worldwide communications infrastructure and our small acquisition of a solid-state line of high power amplifiers two years ago has proved to be good move," said Rick Lober, senior vice president and general manager of Cubic's Communications and Electronics Business Unit. "We expect to see continued growth in this area as military and civilian organizations seek to upgrade their older equipment with modern, solid-state designs," he added.

"Some of this uptick in sales of HF communications products may be attributable to increased concerns about Homeland Security in the wake of 9/11," said Dan McCormick, vice president of communications, intelligence and avionics for the Communications and Electronics Business Unit. "Government agencies discovered shortly after that horrific event that HF communications systems typically serve as a reliable alternative to satellite and other terrestrial systems."

AirServices Australia is that country's air traffic control service provider. Cubic's power amplifiers and receivers will be used exclusively in that company's High Frequency Rationalisation & Modernisation Project, which will upgrade the HF communications systems covering Australia's Domestic and International Flight Information Regions, which constitute around 11% of the world's airspace.

On another project, Cubic is supplying power amplifiers and receivers to Rockwell Collins in the UK, which will be used to upgrade the UK military's global HF communications system, which provides air/ground HF command and control radio communications between ground agencies and military aircraft and ships.

A recent development contract Cubic received from Samyung, a Korean electronics company, calls for Cubic to develop a 4 kilowatt and 1.6 kilowatt power amplifier and an 800 watt VHF receiver. Nine units will be built and installed on new Korean Navy ships.

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 & 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. The corporation's other major segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit authorities.