Beijing, China, and San Diego, Calif., June 9, 2004 – Cubic Transportation Systems, Inc., a subsidiary of San Diego based Cubic Corporation (AMEX:CUB) has established its China headquarters in Beijing, China.

The new company will be called Cubic Transportation Systems (Beijing) Co., Ltd.

The initiative is linked to the company’s commitment to be active in the manufacture and supply of automatic fare collection systems and equipment to railway operators in what is the world’s fastest developing market.

“We have been working in China for a number of years and have now decided it is time to more formally stake our presence in the market place,” said Walter C. Zable, chairman of Cubic Transportation Systems.

“Transport operators in China are seeing the need to make their ticketing and fare collection systems more streamlined and efficient and as a result we see tremendous opportunities to introduce our expertise.

“We will be bidding in the next few weeks for major contracts being tendered by the Beijing Metro,” he said.

“Cubic has designed and installed fare collection systems and equipment on behalf of railway authorities in nearly every major city of the world. Beijing, which will soon be under the international spotlight when it hosts the 2008 Olympics, is working hard to ensure its transportation networks are operating to a high and efficient standard.

“Cubic, along with our partner, Digital China, understands the city’s needs and is ready to provide our services, expertise, experience and technology to the people of Beijing and help them make a success of the Olympics,” Zable added.

In China, Cubic has successfully installed systems and equipment in Guangzhou and Shanghai. In Asia, Cubic has installed systems and equipment in the Hong Kong MTR, the Singapore MRT, Bangkok’s Skytrain and the LRT Kuala Lumpur.

Cubic is teaming with local partner Digital China for the Beijing Metro projects.

Digital China is China’s largest systems integration provider, and is the first in the provision of IT products distribution and e-commerce services.

The Chairman of Digital China, Li Qin, said his company was delighted to be working with Cubic. “Cubic is one of the world’s leading providers of AFC systems and equipment in the world and will enable us to expand our already broad technical capability and offering into the transportation field,” he said.

“We have been doing research and development work with Digital China for the last several months in preparation for these tenders and have built up a good working relationship and technical rapport,” said John Annison, vice president of Cubic Transportation Systems for Asia.

“As a result, we are confident of being able to deliver to the Beijing Metro, good reliable technical solutions--on time and within budget,” said Annison.

A Chinese version of Cubic Transportation Systems’ web site can be found at www.cubic.com/cts.

Digital China’s web site can be found at www.digitalchina.com.

Background on Cubic Corporation
Cubic Corporation is made up of two operating units, Cubic Transportation Systems, Inc. and Cubic Defense Applications.

Cubic Transportation Systems, Inc. is the world’s leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic’s solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London, New York / New Jersey region, Washington, D.C. / Baltimore / Virginia region, Los Angeles region, San Diego region, San Francisco, Minneapolis/St. Paul, Chicago, Houston, Atlanta, South Florida, Vancouver and Edmonton, Canada, Brisbane, Australia, Singapore, Bangkok, Thailand, and Scandinavia.

The corporation’s other major segment, Cubic Defense Applications, 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.