Cubic Awarded $15.5 Million for Small Arms Training Systems

SAN DIEGO, CA., AUGUST 22 , 2006 — The defense segment of Cubic Corporation (AMEX: CUB) has received several orders totaling $15.5 million for its Engagement Skills Trainer 2000 (EST 2000) training systems, Warrior Skills Training enhancements, simulated weapons and services. Cubic will deliver the virtual training systems and services to the U.S. Army, Air Force and the Department of Energy.

EST 2000, validated by the U.S. Army Infantry School, teaches marksmanship skills, squad-level collective defense, and judgmental ‘shoot-don’t shoot’ tactics. The system trains soldiers in the use of small arms, as well as the 50-caliber M-2 machine gun and the 40mm Mark-19 grenade launcher. The Warrior Skills trainer, an enhancement to the EST 2000, provides convoy combat and offensive training in addition to standard small arms training.

Under the awards, Cubic's Simulation Systems will produce and manufacture the complete systems, which will include more realistic and robust weapons.

“Cubic and our customers work as a close-knit team to ensure our soldiers and security personnel are the best trained in the world,” said Terry Kohl, vice president and general manager of the Simulation Systems Division.

“This award confirms our customers’ confidence in our ability to rapidly respond to the ever-increasing training needs of our dedicated young men and women, and enables our division to continue expanding our presence in the Orlando simulation and training marketplace."

Cubic has fielded more than 700 EST 2000 systems to installations throughout the world, including the continental United States, Alaska, Hawaii, Korea, Germany, Afghanistan and Kuwait.

The Cubic Defense Applications group, one of Cubic's two major segments, 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.