Cubic's Defense Segment Trims Workforce in San Diego

SAN DIEGO, Calif., July 23, 2008 -- Cubic Corporation (AMEX:CUB) today announced that it is reducing its overall defense segment workforce by 2.2% or 105 employees. Additionally, five Corporate employees were also affected. All of the reductions are from Cubic's San Diego facility.

This action is the result of a cost cutting initiative designed to streamline operations, enhance competitiveness and better position Cubic to continue to deliver cost-effective, high-quality products and services in the current, and future, defense-related marketplace.

Employees were notified of the action on July 23. Affected employees will receive severance pay and outplacement assistance, as well as company paid medical coverage for a defined period based on years of service.

Cubic spokesperson, David Liddle stated, "While this action is necessary to the continued health of our defense business, it is still a difficult transition. Workforce reductions are a painful part of the process of keeping a business competitive."