Cubic Corp (NYSE:CUB) Reports Sales and Earnings for the Fiscal
Year Ended September 30, 2008

SAN DIEGO, Calif., December 4, 2008—Cubic Corporation (NYSE:CUB) today reported sales and earnings for the fiscal year ended September 30, 2008. Sales in fiscal 2008 were $881.1 million, while net income was $36.9 million or $1.38 per share. Cash flow from operations was strong again this year, at $92.7 million, following $69.2 million in 2007.

Sales and operating income were higher from the transportation systems segment, while defense segment sales and operating income decreased from the strong performance of 2007. Sales were also lower in 2008 by $12.2 million because the Company sold its former corrugated box business in the fourth quarter of 2007. Earnings were impacted in 2008 by a restructuring charge of $6.2 million (approximately $3.7 million or $0.14 per share after applicable income taxes) recorded in the fourth quarter as the result of severance costs related to a reduction in force in the San Diego defense systems subsidiary and corporate headquarters. This is intended to streamline operations and enhance competiveness in the defense-related marketplace. Strong cash flows resulted in net investment and other income increasing to $3.0 million in 2008 compared to $1.3 million in 2007, before applicable income taxes.

Transportation Systems Segment

Transportation systems sales increased 15 percent to $272.3 million in 2008 from $236.6 million in 2007. Sales were higher in the U.K. and Australia and from spare part orders in North America while sales from system installation contracts in North America and Sweden decreased.

Operating income from the transportation segment more than doubled in 2008 to $43.0 million from $20.1 million in 2007. Increased operating income resulted from higher sales in the U.K., increased spare parts orders in the U.S. and improved operating performance on North American system installation contracts.

Defense Segment

Sales from the defense segment decreased 5 percent to $607.8 million in 2008 from $641.1 million in 2007. Sales were higher in the Mission Support Services business, but Training Systems and Communications sales decreased. Sales in several defense training-related product lines were impacted during 2008 by a transition of work from the engineering development phase to the production phase, thereby deferring the recording of sales until the product is delivered and accepted by the customer.

Operating income in the defense segment decreased to $18.3 million in 2008 from $44.2 million in 2007. Cost growth on fixed-price development contracts resulted in an operating loss in Communications and lower operating income in Training Systems. Operating income in 2008 from Mission Support Services was about the same as in 2007.

Backlog

Total backlog was $1.773 billion at September 30, 2008 compared to $2.034 billion at September 30, 2007. Funded backlog was $1.073 billion at September 30, 2008 compared to $1.389 billion at September 30, 2007. The reduction in backlog at September 30, 2008 reflects the termination by Transport for London (TfL), effective in August 2010, of its contract with Transaction Systems Limited (TranSys), a 37.5% owned subsidiary of Cubic, thereby substantially reducing Cubic’s backlog as of the 2008 year end. Subsequently, in November 2008, TfL awarded Cubic a new contract with a base value of $255 million (£170 million) to continue providing virtually all the services formerly contracted to TranSys. This amount will be added to Cubic’s backlog in the quarter ending December 31, 2008.

Liquidity

After spending $53.8 million on a defense acquisition in July, the Company ended the year with $112.7 million in cash and only $31.7 million in total debt, with substantial debt availability.

SEC Form 10-K

The Company also announced that it filed its form 10-K with the Securities and Exchange Commission today. This report may be found at www.cubic.com under “Investor Info”. Shareholders may also receive a free hard copy upon written request to the Company or by E-mail to Investor.Relations@Cubic.com.

Cubic Corporation is the parent company of two major business segments: defense and transportation. The Cubic Defense group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems designs and manufactures automatic fare collection systems for public transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.

In addition to historical matters, this release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements involve predictions of future results. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the Company's business and prospects. These include the effects of politics on negotiations and business dealings with government entities, economic conditions in the various countries in which the Company does or hopes to do business, competition and technology changes in the defense and transit industries, and other competitive and technological factors.

Any statements about the Company’s expectations, beliefs, plans, objectives, assumptions or future events or future financial and/or operating performance are not historical and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,” “opportunity” and similar words or phrases or the negatives of these words or phrases. These statements involve estimates, assumptions and uncertainties.

Since actual results or outcomes may differ materially from those expressed in any forward-looking statements made by the Company, investors should not place undue reliance on any forward-looking statements. In addition, past financial and/or operating performance is not necessarily a reliable indicator of future performance and investors should not use the Company’s historical performance to anticipate results or future period trends. Further, any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict which factors will arise. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

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