Cubic’s “Open Architecture” Technology Gives Transit Agencies Flexibility in Giving Commuters Even More Payment Options in the Future

SAN DIEGO, Calif., June 2, 2003–New ticketing technology from Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (AMEX:CUB), will allow Long Beach Transit and Norwalk Transit passengers to pay their fares with the same smart card soon to be used to pay for L.A. County Metropolitan Transit Authority (MTA) bus and subway rides. Cubic’s “one card, county-wide” open system will give the transit agencies flexibility into the future as they add other public transit and non-transit purchases to the expanding fare collection system.

Under the two new contracts, totaling more than $4.8 million, Cubic will deliver and install on Long Beach and Norwalk buses smart card processing fareboxes that will be interoperable with the ones supplied to other MTA’ “Universal Fare System” agencies. With these two recently awarded contracts, Cubic has received $15.1 million in orders to link eight L.A. County municipal bus operators to the original $84 million comprehensive fare collection and revenue management system that the company is providing to the MTA under a contract awarded in 2002.

By next summer, Cubic technology will allow commuters to use a single smart card to pay for subway, light rail and bus, and “bus rapid transit,” or BRT, throughout L.A. County. BRT is similar to light rail because passengers pay their fares on station platforms before the buses arrive instead of onboard, which has proven effective in decreasing boarding times and increasing passenger convenience. It will be introduced in 2005 to Southern California as part of the MTA’s new San Fernando Valley Metro Rapidway Project.

Cubic Transportation Systems is the world’s largest provider of integrated electronic ticketing and revenue management systems. Every year, nearly 10 billion rides are taken worldwide using Cubic-designed payment systems in more than 40 major markets in cities on five continents, including London, Washington, D.C., Hong Kong, Chicago, New York, Guangzhou, Shanghai, Atlanta, San Francisco, Singapore, Miami, Los Angeles, Baltimore, Jacksonville, Savannah, various Canadian cities, Sweden, Denmark and other cities around the world. Over the past 18 months, Cubic has received contracts to provide smart card-enabled ticketing technology to transit providers in Baltimore, Los Angeles, Minneapolis, New York, San Diego and Houston.

The corporation’s other major segment, Cubic Defense Applications, provides realistic combat training systems for military forces as well as simulation, force modernization, educational services, operations & maintenance and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue avionics and radio communications for military and civil markets. For more information about Cubic, see the company’ web site at http://www.cubic.com.