Cubic Awarded $18.3 Million Delivery Order from U.S. Army
for EST 2000 Small Arms Training Systems

SAN DIEGO, CA., Aug. 4, 2005 — The defense segment of Cubic Corporation (AMEX: CUB) has received an $18.3 million delivery order to provide its Engagement Skills Trainer 2000 (EST 2000) training systems, simulated weapons and services to the U.S. Army.

Cubic received the award from the U.S. Army Program Executive Office for Simulation Training and Instrumentation (PEO STRI) under the Army's STRICOM Omnibus Contract.

EST 2000 – the only small arms training system 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.

Under the award, Cubic's Simulation System Division will produce and deploy the systems to the U.S. Army Active and Reserve components.

“Cubic and PEO STRI work as a close-knit team to ensure our soldiers 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 managed the Army’s EST 2000 program for the past six years. The company has fielded more than 500 EST 2000 systems to Army installations throughout the world, including the continental United States, Alaska, Hawaii, Korea, Germany, Afghanistan and Kuwait.

EST 2000 currently is being deployed for the U.S. Army’s Initial Entry Training for Basic Rifle Marksmanship skills, which is required for all new soldiers entering the Army. Plans are underway to deploy EST 2000 Deployable Shelters to Iraq for sustainment training.

”When fully fielded, the EST 2000 will train more soldiers each year than any other Army training system,” said Kohl.

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.