Cubic Corp. (NYSE: CUB) Reports Record Sales and Earnings
for the Fiscal Year Ended September 30, 2009

SAN DIEGO, Calif. - December 9, 2009 - Cubic Corporation (NYSE: CUB) today reported record high sales and earnings for the fiscal year ended September 30, 2009. Sales in fiscal 2009 were $1.017 billion, exceeding $1 billion for the first time and representing an increase of 15 percent over sales of $881.1 million in 2008. Net income increased 51 percent, to $55.7 million or $2.08 per share from $36.9 million ($1.38 per share) in 2008.

Operating income increased 59 percent, from $53.3 million in 2008 to $84.7 million this year and cash flows from operations were strong, at $176.0 million, compared to $92.7 million in 2008.

Beginning with the fiscal fourth quarter of 2009, the Company is now reporting results of its defense business as two separate segments, Defense Systems and Mission Support Services. Prior year results have been reclassified for comparison purposes.

Transportation Systems Segment

Cubic Transportation Systems (CTS) sales increased 11 percent to $303.4 million in 2009 from $272.3 million in 2008. A lower average exchange rate between the British pound and the U.S. dollar in 2009 resulted in a decrease in the dollar value of U.K. sales by $38.6 million compared to the rate in effect in 2008.

Operating income from CTS increased 3 percent in 2009 to $44.1 million from $43.0 million in 2008. Although operating income in the U.K. was higher in 2009 than in 2008, the lower British pound vs. U.S. dollar exchange rate reduced operating income by $8.8 million in 2009.

Defense Systems Segment

Cubic Defense Systems (CDS) sales increased 4 percent to $285.4 million in 2009 from $275.3 million in 2008. Sales increased in both the Training Systems and Communications businesses.

Operating income from CDS improved to $19.0 million in 2009 from a loss of $9.5 million in 2008. Higher sales of training systems and contract restructuring and change orders on fixed-price development contracts contributed to the increase. In addition, the restructuring activity in 2008 designed to streamline operations resulted in improved performance at CDS.

Mission Support Services Segment

Sales at Mission Support Services (MSS) increased 28 percent to $424.4 million in 2009 from $332.5 million in 2008. About half the growth came from Omega Training Systems, a company Cubic acquired late last year.

Operating income from MSS was about the same as in 2008, increasing to $27.9 million from $27.8. Higher operating profits from Omega were offset by amortization and acquisition related costs. A reserve of $1.4 million was provided in the fourth quarter of 2009 for settlement of a wage-related lawsuit on a military contract in California.

Backlog

Total backlog was $2.183 billion at September 30, 2009 compared to $1.773 billion at September 30, 2008. Funded backlog was $1.535 billion at September 30, 2009 compared to $1.073 billion at September 30, 2008.

Financial Condition

The Company finished 2009 with the strongest financial condition in its history. Cash and short-term investments at September 30, 2009 were $252.2 million while long-term debt was only $25.1 million. The total debt to capital ratio was less than 6 percent at the fiscal year end.

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 three major business segments: defense systems, mission support services and transportation systems. Cubic Defense Systems is a leading provider of realistic combat training systems and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. Cubic Transportation Systems is the world's leading provider of automated fare collection systems and services 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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