Cubic Corp (AMEX:CUB) Reports Higher Earnings for the Quarter Ended December 31, 2007

(San Diego, CA, February 7, 2008) - Cubic Corporation (AMEX:CUB) today reported higher earnings on comparable sales for the quarter ended December 31, 2007. Sales for the first fiscal quarter were $202.7 million compared to $202.9 million last year, while net income increased to $10.7 million or 40 cents per share this year from $8.3 million or 31 cents per share last year. Cash flows from operations were a positive $26.8 million for the quarter, compared to negative cash flows of $4.7 million from operations in the first quarter last year.

Sales increased in both the defense and transportation systems segments, however, the increases were offset by the elimination of sales from a business sold last year in the fourth quarter. Operating income increased from $11.7 million in the first quarter last year to $17.1 million this year, with the improvement coming primarily from the transportation systems segment.

Defense Segment
Sales from the defense segment increased 2 percent to $146.2 million from $143.3 million in last year’s first quarter. Both the Mission Support Services and Readiness Systems businesses generated increases in sales. These increases were partially offset by reduced sales from the Communications and Electronics business. Operating income in the defense segment increased to $9.8 million from $9.5 million last year, a 3 percent increase. The increase in operating income came from both Mission Support Services and Readiness Systems, while Communications and Electronics posted a loss for the quarter compared to a profit in the first quarter last year.

Transportation Systems Segment
Transportation Systems sales were virtually flat -- from $56.0 million in the first quarter last year to $56.5 million this year. Sales in Europe increased due to added work on the contract in London and the strength of the British Pound versus the U.S. Dollar, while sales in North America decreased. Operating income from the transportation segment improved from $2.3 million in the first quarter last year to $7.3 million this year. Strong operating income on higher sales from European operations contributed to the improvement. In addition, last years first quarter results had included a loss provision of $3.9 million on a contract in Sweden, partially offset by a settlement of $1.3 million received from another customer.

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 website 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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