Replacing Magnetics and Tokens Will Save Agency Millions in Maintenance Costs

SAN DIEGO, (BUSINESS WIRE), Oct. 30, 2003–Cubic Transportation Systems Inc., a subsidiary of San Diego-based Cubic Corporation (AMEX:CUB), has been awarded a $72.5 million contract from the Metropolitan Atlanta Rapid Transit Authority (MARTA) to deliver a smart card-only multi-modal fare collection and revenue management system. The new system will be the first in the U.S. to deploy a low-cost, limited-use smart card.

Under the contract, which could be worth as much as $104 million if options are exercised, Cubic will replace MARTA’s existing magnetic ticketing and token-based system with the company’s state-of-the-art open architecture smart card ticketing technology that will allow commuters to use one card to pay for rail, bus, L-van (paratransit) fares and park-and-ride fees. Other applications are planned in the future.

The new multi-application fare collection system will make it fast, easy and convenient for daily commuters as well as occasional public transit users and tourists to travel using public transportation in Atlanta. At the same, it will increase revenues and operational efficiency for the agency.

“We are pleased to support MARTA in its mission to increase ridership and reduce traffic through enhanced public services while improving fare collection operations and providing for future regional needs. With an integrated smart card-based fare collection system from Cubic, MARTA will have a scalable system that combines innovation with reliability, quality and customer focus,” said Richard Johnson, president and CEO of Cubic Transportation Systems Inc.

Cubic is delivering software, computer networks, communications, high-speed smart card encoding machines, sales terminals for customer agents, parking equipment, bus fareboxes, faregates and multi-language ticket vending machines that issue smart cards. Cubic is also providing innovative customer service features including credit-debit payment, Internet-based ticketing, Autoload (the ability to automatically load value onto the card), and electronic transit benefits delivery.

These and other advanced capabilities are integrated and managed by Cubic’s Nextfare™ Central System, a configurable suite of software modules designed using industry standards, open platforms and commercial off-the-shelf applications to provide the core fare collection, management and reporting functions. Through Nextfare’s modular design and scalability, the MARTA system can expand to support a variety of financial, operational and customer service options.

Beginning in 2006 when the system launches, patrons will be able to use a customer service Web site to order and register cards, make account queries and add value to their cards with the online “Autoload” software feature. Added value can then be collected automatically the next time customers use their cards in the system at rail stations, on buses and L-vans, and when parking.

To support the needs of regular commuters, occasional transit users and tourists, MARTA will offer two types of contactless smart cards: hard plastic style similar to a credit-debit card that is designed to be used for many years, and a paper version meant for limited use. Both card types provide “touchless” entry, a feature with potential for significant maintenance savings for the agency since there are no moving parts to worry about in ticket processing. This function is handled via Cubic’s patented Tri-Reader(R), which can read any type of contactless smart card that meets ISO standards and is a standard component in all Cubic’s fare collection equipment.

With Cubic’s Tri-Reader and Nextfare Central System in place, MARTA will have the ability in the future to link to other transit services in the region, as well as toll roads and airport parking. Regional participants would have the advantage of a truly open system with flexibility, interoperability and a range of fare media choices.

Cubic has supplied the only fully operational smart card-based systems for public transit in the U.S., first in Washington, D.C., followed by Chicago. Next year, Cubic will deliver the nation’s first multi-state system, which will expand Washington’s SmarTrip(R) system to buses serving Washington, D.C., Maryland and northern Virginia. By 2005, the same technology will be installed on all the subway, commuter rail and para-transit services in Baltimore and throughout Maryland. Cubic will also deliver similar systems to Minneapolis-St. Paul, Los Angeles, San Diego, Edmonton and the Port Authority of New York & New Jersey for the PATH and JFK AirTrain systems. In July 2003, Cubic won a $95 million contract to design, build, operate and maintain the first smart card-based fare collection system in South East Queensland, Australia. Cubic delivered a similar smart card-based system in London as part of the TranSys consortium.

Cubic Transportation Systems is the world’s leading system provider for regional multi-operator intermodal ticketing systems. Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems in more than 40 major markets on five continents, including London; New York; Washington, D.C.; Baltimore; Sydney; counties in Sweden, Norway and Denmark; Rotterdam; Chicago; Atlanta; San Francisco; Los Angeles; Miami; Hong Kong; Guangzhou; Shanghai; and Singapore.

The corporation’s other major segment, Cubic Defense Applications, provides instrumented air and ground combat training systems, battle command training, simulations and simulation support for U.S. and allied military forces. The group also produces high technology avionics, data links and communications products for government and commercial customers, and a wide range of technical and logistics services. For more information about Cubic, see the company’s Web site at http://www.cubic.com.

CONTACT: Cubic Corp., San Diego

Jae Lande, 858-505-2642

[email protected]