Cubic Receives Contract for UK’s WATCHKEEPER
Program

SAN DIEGO, Calif., December 15, 2005—Cubic Defense Applications, the defense segment of Cubic Corporation (AMEX:CUB), has received a $52 million contract from UAV Tactical Systems, a subcontractor to the Thales UK WATCHKEEPER Prime Contract Management Office, to supply its advanced data link technology for the UK Ministry of Defence’s WATCHKEEPER program. Cubic has issued a subcontract to its UK design and manufacturing partner, Ultra Electronics, to assist in supplying the data links for this critical UK defense program.

WATCHKEEPER will provide UK Armed Forces with an Intelligence, Surveillance, Target Acquisition and Reconnaissance capability based on an Unmanned Aerial Vehicle (UAV) system and will be a key element of the UK military’s Network Enabled Capability. This capability is expected to become operational in 2010.

Cubic’s spectrally efficient Tactical Common Data Link (TCDL) and High Integrity Data Link (HIDL) will be employed for this program. The TCDL will enable WATCHKEEPER to transfer time-critical information from multiple UAVs operating in the same geographical area without mutual interference. The HIDL, developed for command-and-control of UAVs, will provide WATCHKEEPER with a versatile, programmable back-up link.

“WATCHKEEPER is a very important program for us, and we’re thrilled to be part of the Thales UK team. This award firmly establishes our foothold in this market and proves that our newest data link technology is ideally suited for today’s unmanned aerial vehicle programs,” said Rick Lober, senior vice president of Cubic’s Communication and Electronics Business Unit.

WATCHKEEPER will provide the UK Armed Forces with 24/7 surveillance capability in all types of weather conditions without the need to deploy troops into sensitive or harmful environments. The unmanned air vehicles that will be used, the WK450, can stay airborne for up to 16 hours each. Cubic’s high-speed TCDL provides the wireless connection for transferring data and images from WK450s to control ground stations.

The Cubic Defense Applications group, one of Cubic Corporation’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 Web site at www.cubic.com.