SAN DIEGO, June 7, 2007 – Cubic Corporation (AMEX: CUB) is in the process of reorganizing the senior management of its two principal subsidiaries. Under this plan, the president of our Defense Group, Gerald Dinkel, will become a Senior Advisor. In addition, the president of our Transportation Group, Richard Efland, will retire at the end of this year, as previously announced. Both presidency positions will be eliminated.

The units of the Defense Group will be managed by the existing heads of the Readiness Systems, Mission Support and the Communications and Electronics units, who will assume direct General Managerial responsibility for those businesses.
In the Transportation Group, the functions of the office of the Presidency will be assumed by a Directorate composed of existing senior vice presidents.

In order to improve operating efficiencies, both the Defense and Transportation Groups are selectively reducing their personnel by approximately 10 -15 persons each. This has already been done in the Defense Group and is expected to be completed in the Transportation Group over the next 10 days.

Cubic Corporation is the parent of two major segments: transportation and defense. The Cubic Transportation Systems group designs and manufactures automatic fare collection systems for public transit authorities throughout the world, including rail, bus and parking lot systems. The Cubic Defense Applications group is a world leader in realistic combat training systems, mission support services and defense electronics.