Cubic Receives $98 Million in Orders for Next-Generation
P5 Air Combat Training System under ID/IQ Contract

San Diego, Calif., July 13, 2006 – The defense segment of San Diego-based Cubic Corporation (AMEX:CUB) announced it has received orders totaling $98 million from the U.S. military for its next-generation air combat training system.

Cubic Defense Applications and its principal subcontractor, DRS Technologies, Inc. (NYSE:DRS) are providing the P5 Combat Training System/Tactical Combat Training System (P5 CTS/TCTS) to the U.S. Air Force, Navy, Marines and Air National Guard under an Indefinite Delivery, Indefinite Quantity (ID/IQ) contract awarded in 2003. The ID/IQ contract, valued at $525 million, calls for the delivery of the P5 system to potentially 30 sites over a 10-year period.

“The P5 system will dramatically improve air combat training missions for U.S. and coalition forces. It features a common approach for joint, multi-service and coalition training – allowing fighter pilots to train together as a coordinated team in any available airspace,” said Don Jacobs, Cubic’s vice president of Air Combat Training Systems. “Cubic is extremely proud to provide this important capability to our forces.”

The system is designed to support live training for air-to-air, air-to-ground and electronic warfare missions. With P5 CTS/TCTS, tactical aircrews can conduct rangeless training missions without the need for a fixed range. The system uses GPS technology and a sophisticated data link system. It also features live monitoring, real-time weapons simulations, extended tracking capabilities and timely, accurate post-mission debriefs.

“P5 CTS/TCTS is truly the future of air combat training,” said Philip Fisch, senior director of Business Development for Cubic’s Air Combat Training Systems. “This technology will eventually replace all of the U.S. military’s existing air combat training systems around the globe. It also meets current and emerging requirements for U.S and coalition training and sets the stage for foreign military sales.”

The Navy has already conditionally accepted the system at Naval Air Station, Key West, having successfully flown more than 1,000 sorties. The Air Force is expected to make final acceptance of the system within the next few months.

Future delivery orders will provide this capability to Air Force and Navy installations throughout the U.S., Europe and Asia.

The system features easily transportable components for on-demand training. It includes two major subsystems: GPS-based airborne pods and transportable ground stations.

The airborne instrumentation, provided by DRS Technologies, performs the real-time weapons simulations and processes/records in-flight events. The ground stations enable training officers to communicate with pilots in real time and conduct debriefs via the Individual Combat Aircrew Display System, or ICADS.

A cooperative multi-service program, P5 CTS/TCTS is contracted through the 689th Armament System Squadron at Eglin AFB. The Navy portion of the program is managed through PMA-205 at Naval Air Systems Command, Patuxent River, Maryland.

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.