New contract clears the way for new U.S. Air Force orders
for Cubic’s next-generation Personnel Locator System

SAN DIEGO, Calif. – August 8, 2006 –The defense segment of Cubic Corporation (AMEX:CUB) announced today that it has received a key contract for Cubic’s next-generation Personnel Locator System (PLS). Cubic said the new contract to integrate its new AN/ARS-6 V12 systems aboard Air National Guard helicopters could clear the way for significant new U.S. Air Force business over the next several years.

Cubic’s initial contract value is for less than $1 million, with a $1 million option for additional PLS V12 systems. But the company will be eligible for more business as the Air Force proceeds with upgrading the combat search and rescue (CSAR) aircraft in its inventory over the next five to 10 years.

“This is the initial procurement in a long-term effort to update all of the ARS-6 Personnel Locator Systems in the U.S. Air Force inventory, including systems aboard the HH-60G PaveHawk and HC-130 Hercules. The Air Force also plans to increase the number of PLS systems installed on the A-10 Thunderbolt aircraft,” said Craig Campbell, director of International Business Development for Cubic’s Communications and Electronics Business Unit.

For nearly two decades, Cubic systems have helped combat search and rescue crews communicate with downed pilots to locate and extract them without detection by enemy forces. Cubic’s V12 system includes extended and improved voice communications, and allows two-way text messaging and GPS location from new-generation survival radios. The V12 system is also interoperable with all standard civil emergency beacons.

Aerospace Integration Corporation (AIC), based in Mary Esther, Florida, is the prime contractor for the installation of the new PLS V12 on the HH-60G PaveHawk. As a subcontractor to AIC, Cubic will provide technical support and production PLS V12 systems for integration and test on the PaveHawk. The HH-60G serves as the primary CSAR aircraft for the U.S. Air Force, and is operated by the Air National Guard, USAF Research and active Air Force, as well as the Air Force Special Operations Command.

In addition, Cubic is working with the Air Force to determine requirements for installing the new PLS systems aboard the A-10, a fixed-wing attack aircraft flown by active USAF squadrons as well as the Air National Guard and USAF Reserve. The A-10 serves in a close air support role during CSAR missions, suppressing any enemy forces in the area, and in providing security while the rescue aircraft extracts the survivors from hostile territory.

In the past two years, Cubic has received a total of approximately $10 million in U.S. and international orders for the AN/ARS-6 V12, a smaller, lighter and more powerful version of Cubic’s industry-standard V6 PLS.

Cubic’s Communications & Electronics Business Unit is part of Cubic Defense Applications (CDA). One of Cubic Corporation’s two main 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 web site at www.cubic.com.