Cubic awarded $24.2 million in contracts
for small arms and other defense training systems

SAN DIEGO, Calif. – Jan. 24, 2007– The defense segment of Cubic Corporation (Amex: CUB) has received in excess of $24 million in contracts for its Engagement Skills Trainer 2000 (EST 2000) training system and other defense training systems.

The U.S. Army Program Executive Office, Simulation Training and Instrumentation Command (PEO STRI) ordered the EST 2000 systems. Validated by the U.S. Army Infantry School, EST 2000 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. The enhanced Warrior Skills version of EST 2000 allows mounted or dismounted soldiers to engage enemy targets as they move through virtual urban environment that replicates current combat conditions and includes simulated improvised explosive devices (IEDs).

Under the awards, Cubic's Simulation Systems Division, based in Orlando, Florida, will produce and manufacture the complete small arms training systems, which include more realistic weapons.

Cubic has fielded more than 800 EST 2000 systems to installations throughout the world, including the continental United States, Alaska, Hawaii, Korea, Germany, Afghanistan and Kuwait.

Cubic will also produce driver components for the LAV 25 Advanced Gunnery Training System (AGTS) as a subcontractor to Lockheed Martin, prime contractor for the virtual trainer, which is used by the U.S. Marine Corps for combat gunnery training for light armored vehicle crews.

Cubic Defense Applications, 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.