SAN DIEGO, Calif. – Sept. 29, 2004 -- Cubic Defense Applications, the defense segment of Cubic Corporation (AMEX: CUB), has received a $2.5 million cost-plus contract from General Dynamics to develop high-frequency (HF) Power Amplifiers for use with General Dynamics’ software-defined radio system aboard U.S. submarines.

Cubic will develop a prototype for a new 500W Power Amplifier based on both existing Cubic technology and new modules. Cubic is scheduled to deliver the first units by mid-May 2005. The 500W Power Amplifier will form part of the AN/USC-61 Digital Modular Radio (DMR) system developed by General Dynamics for the Program Executive Office for C4I and Space.

The DMR system is a software-controlled and reconfigurable digital communication system that improves the Navy’s ability to communicate with diverse legacy radios. The DMR system significantly reduces the weight, size and complexity of the communication equipment required to support the Navy’s mission.

“This contract represents Cubic’s first sale of its power amplifier technology for use with a software-defined radio aboard a U.S. Navy vessel,” said Dan McCormick, vice president for communications, intelligence and avionics for Cubic’s Communications Business Unit. “Overall, Cubic has had strong bookings for power amplifiers this year, and we have indications that shipboard amplifiers will be a growing market for us.”

Cubic also has contracts to deliver Power Amplifier systems to foreign customers, including systems for Korean and Malaysian naval vessels, systems to AirServices Australia for air traffic control use, and to Rockwell Collins to upgrade the United Kingdom military’s global HF communications system, which provides air/ground HF command and control radio communications between ground agencies and military aircraft and ships.

Cubic’s Communications Business Unit is part of Cubic Defense Applications (CDA). CDA provides realistic combat training systems for military forces, as well as mission support services for training and exercises, modeling and simulation, force modernization, leadership development, curriculum design and development, web-based learning solutions and operations and maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and 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. For more information about Cubic, see the company's Web site at www.cubic.com.