Cubic’s Distance Learning Business Shows Steady Growth

SAN DIEGO, Calif. – February 22, 2006 -- Cubic Corporation (AMEX: CUB) reported that its defense segment is seeing an increase in U.S. Army distance learning business. Over the past three years, the company has received approximately $7 million in Army contracts for distance learning courseware, and is positioned to gain more of this business following its successful teaming with UNITECH to win an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with a five-year potential value of $320 million for the Army’s Distance Learning Education and Training Products (DLETP) program.

A UNITECH team including Cubic is one of six teams selected by the U.S. Army Training and Doctrine Command (TRADOC) to win the opportunity to bid for a wide range of interactive and multimedia training and simulation content and courseware under the DLETP program. The TRADOC contract is for one base year with four option years.

Web-based or distance learning courseware is of growing interest to military educators because it enables rapid update of content, and standardizes the material presented for both active and reserve components.

“Distance learning is a methodology that can be used when it’s not possible to get everyone in one central location to train,” said Pat Lamar, Cubic program manager for the Non Resident School located at the U.S. Army Command and General Staff College (CGSC) at Fort Leavenworth, Kansas. “The tools that Cubic is developing for the U.S. Army will allow thousands of people who could otherwise not continue their professional military education – including active-duty, Reserve and National Guard officers – to continue learning wherever they go. And the tools that Cubic is providing can be expanded upon later if the Army so chooses, to make the content even more valuable and current for each unit.”

Cubic received its first contract to provide distance learning coursework in 2002, when the CGSC asked Cubic to convert the Army’s Intermediate Level Education (ILE) common core component to a Web-based curriculum that mid-grade Reserve and National Guard officers could take at any location with Internet access. The ILE contract, which generated about $3.5 million for Cubic over its three-year term, was successfully completed in September 2005. Since October 2005, the Army’s Non-Resident School has enrolled students worldwide to learn warfighting ethos and leadership skills.

Cubic received a second, $1.1 million contract in 2004 from the Army Combined Arms Center at Fort Leavenworth to convert a portion of the Army’s traditional Advanced Operations & Warfighting Course (AOWC) for distance learning. This effort involved the conversion of approximately 72 hours of leadership and history courses to a distance learning format suitable for Reserve and National Guard officers. Cubic completed this second contract in August 2005.

In September 2005, Cubic received a new $2.6 million award to convert AOWC Block I (Joint Operations) and Block II (Division Operations) to a distance learning format. Cubic began work on the new contract in October. Completion is scheduled for August 2006, with the possibility of follow-on maintenance and sustainment work.

And now the new DLETP contract offers the promise of more distance learning opportunities. Cubic specifically will focus on developing the capability to conduct training collaboratively enabling students to not only interact with the media, but also with the instructor.

Cubic’s Training and Education Division is part of the Mission Support Business Unit of Cubic Defense Applications (CDA), one of Cubic Corporation’s two major segments. CDA 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.