Cubic to support comprehensive training exercise
for Indiana National Guard

SAN DIEGO, Calif. – July 5, 2006 -- The defense segment of Cubic Corporation (Amex: CUB) will provide role players, scenario development, battlefield effects and other training support for a comprehensive combat training exercise in July involving more than 750 members of the Indiana National Guard.

Cubic is supporting the National Guard Bureau in executing and evaluating the Exportable Combat Training Capability (XCTC), a new training concept that allows Army National Guard and Army Reserve units to undergo highly realistic battlefield conditions and instrumented training at their home station, or at regional training sites. XCTC training exercises resemble the training experiences that soldiers receive at major Army combat training centers such as Fort Polk, Louisiana, or Fort Irwin, California.

The National Guard Bureau’s second XCTC exercise will take place July 8-28 at Camp Atterbury Joint Forces Maneuver Training Center and at the Muscatatuck Urban Training Center, both in Indiana. Cubic’s team will be responsible for developing settings, characters, scenarios and battlefield effects reflecting the contemporary operating environment that National Guard troops now face in Iraq or Afghanistan.

To prepare for the event, Cubic’s Operations Support Division has assigned a core group of full-time employees to plan and execute the training exercise, and is also training more than 200 local role players to portray civilians on the battlefield.

“The XCTC concept allows the National Guard and Reserve to make maximum use of limited training time and dollars,” said Lee Legowik, a retired brigadier general in the Army National Guard who now directs National Guard Programs for Cubic’s Mission Support Business Unit. “XCTC is also a win-win situation for local communities. Local National Guard personnel receive training through XCTC that could help them stay safe and return to their families, and civilians benefit as well from the money that contractors like Cubic are pumping into the local economy.”

Cubic is supplying its training services as part of a team headed by Coalescent Technologies Corporation. Earlier this year, the Coalescent team received a four-year, $39 million task order to provide modeling and simulation and broad-based training support to the Army National Guard and other Department of Defense units. The team received the task order through the U.S. Navy’s nationwide Seaport-e electronic contracting activity.

Cubic also participated in the National Guard Bureau’s first XCTC exercise last summer, providing realistic battlefield effects, role players, video recording services, training analysts and technicians.

The Mission Support Business Unit is part of the Cubic Defense Applications Group (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.