SOURCE: Cubic Corporation

August 22, 2007 07:00 ET

Cubic to Begin Five-Year Training and Education Contract for U.S. Army Quartermaster Center and School

Company Enters Logistics Business With Potential $30 Million Contract

SAN DIEGO, CA--(Marketwire - August 22, 2007) - Cubic Corporation (AMEX: CUB) has achieved a strategic goal to win new defense logistics business. The U.S. Army Quartermaster Center and School at Fort Lee, Virginia, recently selected Cubic to design and implement training and education support under a five-year, $30 million contract.

"Our company has aggressively pursued logistics-related business for the past two years, and the U.S. Army Quartermaster Center and School contract is our first prime competitive award captured in head-to-head competition with established logistics contractors," said Jim Balentine, president and CEO of Cubic Applications, Inc. (CAI). "This program will serve as an important credential as we continue to pursue additional logistics opportunities."

Under the new contract, a Cubic defense subsidiary -- Cubic Applications, Inc. (CAI) -- will provide field, classroom, computer and hands-on training to the quartermaster school, which has an annual enrollment of approximately 26,000 U.S. and international military personnel. Cubic will provide support in the following areas.

--  Training initial-entry soldiers how to operate U.S. Army management
    information systems;
--  Providing culinary instruction to Army and U.S. Marine Corps cooks;
--  Teaching Army logistics personnel the safekeeping and distribution
    procedures for all types of supplies, including aerial delivery and air
    drops;
--  Training Army personnel how to store, transport and distribute fuel
    and water.
    

The new contract will significantly increase Cubic's current presence at Fort Lee, where the company is currently supporting logistical simulation development. There is potential for future growth for Cubic at Fort Lee as a result of the 2005 Base Realignment and Closure (BRAC) decision to relocate U.S. Army ordnance, transportation and munitions training facilities there.

Cubic Applications, Inc. is a major component of the Defense segment of Cubic Corporation. Cubic Corporation is a world provider of realistic combat training systems, mission support services and defense electronics. Another Cubic Corporation segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit authorities.

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