Cubic wins contract to develop a new version
of MILES combat training system featuring wireless technology

SAN DIEGO, Calif. – June 28, 2006 – The defense segment of Cubic Corporation (Amex: CUB) has received a $25 million contract from an Asia Pacific customer for a new version of Cubic’s widely used laser-based combat training system featuring wireless technology.

Military trainers around the world use Cubic’s Multiple Integrated Laser Engagement System (MILES) to track and record the performance of soldiers as they participate in force-on-force exercises. MILES has two basic systems – manworn and vehicle. Manworn systems include laser detectors worn on player vests and helmets, and laser transmitters mounted to actual weapons. Vehicle systems consist of laser transmitters and detectors used during simulated battles.

Under the new contract, Cubic Defense Applications and its New Zealand subsidiary, Oscmar International Ltd., will develop new manworn systems and vehicle systems for both armored and softskin vehicles. The new manworn systems will feature smaller and lighter weight wireless technology that is universally configurable to fit on any army’s vest to meet any training requirements. The new systems will also be compatible with previous Cubic Oscmar MILES systems with industry-standard Radio Frequency (RF) links.

“With Cubic and Oscmar’s new wireless technology, our customers will be on the forward edge in training systems technology,” said Ray Barker, senior vice president in charge of Cubic’s Training Systems Business Unit.

A Cubic internal research and development program provided initial funding for the new technology, building on Cubic’s many years of experience supplying MILES equipment to diverse customers in the United States, Australia, Canada, Europe and the Middle East.

Ernie Armijo, general manager of Cubic Oscmar, said the company is the leading supplier of MILES in the Asia Pacific region.

“This new wireless technology carries the potential to increase our footprint in the Asia Pacific market even further,” Armijo said.

The Training Systems Business Unit and Oscmar International Ltd. are part of the Cubic Defense Applications Group (CDA). 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.