Cubic Corp. (NYSE: CUB) Reports Financial Results
for the Quarter Ended December 31, 2009

SAN DIEGO, Calif. - February 8, 2010 - Cubic Corporation (NYSE: CUB) today reported sales for the first fiscal quarter were $250.7 million compared to $244.9 million last year, and net income was $13.7 million or 51 cents per share this year compared to $14.2 million or 53 cents per share last year.

Operating income in the first quarter this year was $20.9 million, compared to $21.1 million last year, because of a provision of $2.0 million made during the quarter for a contract dispute. The company is continuing to pursue alternatives for resolution of the dispute that could lead to recovery of the full amount, but the amount or likelihood of recovery cannot be determined at this time. Cash flows from operations were $11.3 million for the quarter.

Transportation Systems Segment

Cubic Transportation Systems (CTS) sales were virtually the same in the first quarter of fiscal 2010 and 2009, at $74.3 million compared to $74.4 million in the prior year.

Operating income from CTS increased 10 percent in the first quarter this year to $11.0 million compared to $10.0 million in the prior year. The prior year results had included two contract restructurings and a dispute resolution, which added $1.6 million to first quarter operating income last year.

Defense Systems Segment

Cubic Defense Systems (CDS) sales increased 15 percent to $75.6 million from $66.0 million in last year's first quarter. Sales increased in both the Training Systems and Communications businesses.

Operating income from CDS improved to $6.7 million from $5.2 million in last year's first quarter. Higher operating income on higher sales of electro-optic training systems and personnel locator systems contributed to the increase.

Mission Support Services Segment

Sales at Mission Support Services (MSS) decreased 3 percent to $100.2 million from $103.8 million in the first quarter of last year. A contributing factor to the decrease was the completion of a contract in Iraq that had added approximately $5.7 million to sales to the first quarter of the prior year.

Operating income from MSS was $4.0 million compared to $7.5 million in the prior year's first quarter. The contract in Iraq mentioned above had contributed approximately $2.0 million to the prior year results in addition to a $1.2 million contract settlement received in last year's first quarter. This year's first quarter included a provision of $2.0 million for a dispute with a customer over contract terms.

Backlog

Total backlog was $2.175 billion at December 31, 2009 compared to $2.183 billion at September 30, 2009.

Financial Condition

The company continues to maintain a strong liquidity position, ending the period with $258.2 million in cash and short-term investments, and total debt of only $21.0 million.

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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