SPAWAR Gives Cubic Final Acceptance for Navy Communications Data Link System (CDLS).

SAN DIEGO -- Cubic Defense Applications, the defense segment of Cubic Corporation (Amex: CUB), announced that the U.S. Navy Space and Naval Warfare Systems Command (SPAWAR) has given final acceptance to the first production unit of Cubic's Communications Data Link System (CDLS). The action clears the way for Cubic to produce and deliver more systems for SPAWAR and its organizational partner, the Navy's Program Executive Office for C4I and Space, under a 2003 contract.

The CDLS is an extremely high-speed wideband data link that transmits signal and imagery intelligence data between reconnaissance aircraft sensors and associated surface ship processing systems. The next-generation data link system is expected to significantly increase the speed and volume of intelligence, surveillance and reconnaissance data that can be processed aboard Navy combat ships, and to ensure quick, accurate and secure distribution of intelligence data to the fleet.

"It took dedication and focus on the part of Cubic and PEO C4I and Space to get this vital system delivered on time. Now Navy CDLS can perform its important duty -providing superior information faster to our fighting forces," said Navy Capt. John Pope, program manager for the Navy's Communications Program Office.

"Final acceptance of this system is an important milestone for Cubic, and demonstrates to our customers and potential customers that Cubic delivers quality data link and systems technology that is interoperable with legacy systems developed by others," said Richard Lober, senior vice president in charge of Cubic's Communications and Electronics Business Unit. "Navy CDLS will also be an important hub for the Department of Defense's network-centric warfare initiatives."

Cubic delivered its first production Navy CDLS system to SPAWAR in late May. Destined for installation aboard USS Tarawa, a Navy ship used to support U.S. Marine Corps amphibious landings, the system will provide wideband Common Data Link capability to the Marines. A CDLS qualification system was installed aboard the aircraft carrier USS Eisenhower last summer, and Navy crews have been using the new wideband capability following successful sea trials aboard the ship.

Trey Cochran, vice president of Program Operations for Cubic's Communications and Electronics Business Unit, said the sea trials aboard the Eisenhower and other government-sponsored tests have shown the system's interoperability with data links for the U-2 reconnaissance aircraft, as well as SHARP reconnaissance pods aboard tactical aircraft.

Cubic's 2003 contract with SPAWAR on behalf of its organizational partner, the Program Executive Office for C4I and Space, has a potential value of $94 million, with $67.5 million awarded to date. Ultimately, Cubic will deliver a total of 18 systems to SPAWAR. Cubic has delivered seven of the 18 systems so far, including five qualification systems; the first production unit, delivered in May; and a second production unit delivered in early June.

The Communications and Electronics Business Unit is part of Cubic Defense Applications (CDA), one of Cubic Corporation's two major segments. CDA is a world leader in realistic combat training systems, mission support services and defense electronics. 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 website at www.cubic.com.