Cubic Receives $18.9 Million Contract to Refurbish, Modernize
Bus Fare Collection System for San Francisco Transit System
Upgrade Will Help Long-Time Customer Extend Life of System,
Save Costs While Adding New Technology and Capabilities

(SAN DIEGO, Calif., December 1, 2008) – Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (NYSE:CUB), has received an $18.9 million contract to refurbish and upgrade the company’s 17-year-old fare collection system operated by the San Francisco Municipal Transportation Agency (SMFTA) for the San Francisco Municipal Railway (Muni), the Bay Area’s largest transit operator and a long-time Cubic customer.

The contract includes a new central computer system that will deliver improved data retrieval and reporting for Muni to monitor ridership patterns and manage its revenues.

Originally designed and delivered under a 1991 contract with Muni, Cubic’s fare collection system is a network of electronic fareboxes that collects and processes cash fares aboard Muni’s buses, trolleys and light rail system. The fareboxes will be modernized with new internal components that will provide increased reliability.

“ The fareboxes themselves are still durable, and by refurbishing them we will be able to extend their useful life by another 10 years,” said SFMTA Executive Director/CEO Nathaniel P. Ford, Sr., explaining the agency’s decision not to replace its fare collection equipment with a new system. “This means we can capitalize on our
existing infrastructure with improved reliability and still be able to meet our goals of on-time performance and an improved customer experience.”

Cubic’s Nextfare® Central System will replace the current data system, delivering a solution that will bring Muni the most current technology in fare collection, data processing and analysis, management and control for the surface fleet. Nextfare is Cubic’s open architecture, modular and configurable central computing platform.

The fare collection system upgrade will be completed in 2010.

Established by voter proposition in 1999, the SFMTA, a department of the City and County of San Francisco, oversees both the Municipal Railway (Muni) and the Department of Parking and Traffic (DPT). With five modes of transit, Muni has approximately 700,000 passenger boardings each day. Over 35,000 extra vehicles enter San Francisco on any given business day, and rely on DPT to keep the flow of cars, transit vehicles, delivery trucks, pedestrians, and bicycles moving smoothly through the streets.

Cubic Transportation Systems, one of Cubic Corporation's major segments, designs and manufactures automated fare collection systems for public mass transit authorities. The corporation's other major segment, Cubic Defense Applications (CDA), is a world leader in realistic combat training systems, mission support services and defense electronics. For more information about Cubic, see the company's website at www.cubic.com.