Press Release



	Cubic Awarded $11.58 Million Contract from Washington Area Metropolitan Transit Authority Contract Completes Final Step in Creating Unified Regional Fare Collection System San Diego, Calif., November 9, 2006 — The Washington Metropolitan Area Transit Authority (WMATA) has awarded an $11.58 million contract modification to Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (AMEX:CUB), to implement software and technology upgrades that will unite Washington Metropolitan Area rail, park and ride and regional bus systems through common smart card media and a centralized transaction processing and reporting back-office system. The system enhancements include new state-of-the-art contactless card readers at all Metro subway and parking facilities, which will expand the already successful SmarTrip® regional smart card system. The upgrades will increase efficiencies and open new commercial opportunities that could save the agency millions of dollars in annual operating costs. Led by the vision of WMATA, the SmarTrip program began with the nation's first multi-modal trial of contactless smart cards in the mid-1990s. The successful of the trial led to full system deployment within Washington Metro rail operations in 1999. Contract with Cubic between 2001 and 2004 expanded the system to Metrobus and nine regional agencies. Among the regional participants are the Maryland Transportation Authority, the Northern Virginia Transportation Commission, Montgomery County Ride-On, and Alexandria Dash. Today, nearly 2 million SmarTrip cards have been sold with 1.1 million of those cards in use daily across Metro Rail and Bus operations. The remaining participants are scheduled to come on line over the coming months. Under the contract add-on Cubic will migrate WMATA's legacy mainframe computer system to one processing platform — the Nextfare™ Central System, the hub of Cubic's turnkey fare collection system. Nextfare, an enterprise management system for transit fare programs, is a configurable suite of software modules and applications that provide the core fare collection — which will be implemented for WMATA's system — as well as financial accounting including revenue clearing, settlement and reporting. When this project is finished, it will complete the system that links each of the participating regional operators. This will enable SmarTrip cardholders to seamlessly connect between agencies without having to purchase separate tickets. Nextfare also facilitates a variety of user conveniences such as the purchase of fare products on the Web, the ability for the card to electronically receive federally subsided transit benefits, and the ability of the user to re-load SmarTrip cards at specially equipped merchant locations. In addition to Washington, Nextare is currently operating in Baltimore, Atlanta, Los Angeles, San Diego and Minneapolis. Cubic will also upgrade WMATA's fare collection infrastructure with its patented Tri-Reader®, which can process contactless smart cards meeting ISO 14443. This will allow WMATA to select from a wider choice of cards suppliers and open doors for WMATA to structure collaborative relationships with smart card issuers from both the public and priviate sectors. Cubic Transportation Systems is one of two major business segments of Cubic Corporation. The Cubic Defense Applications group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems designs and manufacturers automatic fare collection systems for public transit, including rail, buses and parking throughout the world. For more information about Cubic, see the company's Web site at cubic.com. SmarTrip.is a registered trademark of the Washington Metropolitan Area Transit Authority. .

Cubic Awarded $11.58 Million Contract from Washington Area Metropolitan
Transit Authority
Contract Completes Final Step in Creating Unified Regional Fare Collection System

San Diego, Calif., November 9, 2006 — The Washington Metropolitan Area Transit Authority (WMATA) has awarded an $11.58 million contract modification to Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (AMEX:CUB), to implement software and technology upgrades that will unite Washington Metropolitan Area rail, park and ride and regional bus systems through common smart card media and a centralized transaction processing and reporting back-office system. The system enhancements include new state-of-the-art contactless card readers at all Metro subway and parking facilities, which will expand the already successful SmarTrip® regional smart card system. The upgrades will increase efficiencies and open new commercial opportunities that could save the agency millions of dollars in annual operating costs.

Led by the vision of WMATA, the SmarTrip program began with the nation's first multi-modal trial of contactless smart cards in the mid-1990s. The successful of the trial led to full system deployment within Washington Metro rail operations in 1999. Contract with Cubic between 2001 and 2004 expanded the system to Metrobus and nine regional agencies. Among the regional participants are the Maryland Transportation Authority, the Northern Virginia Transportation Commission, Montgomery County Ride-On, and Alexandria Dash. Today, nearly 2 million SmarTrip cards have been sold with 1.1 million of those cards in use daily across Metro Rail and Bus operations. The remaining participants are scheduled to come on line over the coming months.

Under the contract add-on Cubic will migrate WMATA's legacy mainframe computer system to one processing platform — the Nextfare™ Central System, the hub of Cubic's turnkey fare collection system. Nextfare, an enterprise management system for transit fare programs, is a configurable suite of software modules and applications that provide the core fare collection — which will be implemented for WMATA's system — as well as financial accounting including revenue clearing, settlement and reporting. When this project is finished, it will complete the system that links each of the participating regional operators. This will enable SmarTrip cardholders to seamlessly connect between agencies without having to purchase separate tickets. Nextfare also facilitates a variety of user conveniences such as the purchase of fare products on the Web, the ability for the card to electronically receive federally subsided transit benefits, and the ability of the user to re-load SmarTrip cards at specially equipped merchant locations. In addition to Washington, Nextare is currently operating in Baltimore, Atlanta, Los Angeles, San Diego and Minneapolis.

Cubic will also upgrade WMATA's fare collection infrastructure with its patented Tri-Reader®, which can process contactless smart cards meeting ISO 14443. This will allow WMATA to select from a wider choice of cards suppliers and open doors for WMATA to structure collaborative relationships with smart card issuers from both the public and priviate sectors.

Cubic Transportation Systems is one of two major business segments of Cubic Corporation. The Cubic Defense Applications group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems designs and manufacturers automatic fare collection systems for public transit, including rail, buses and parking throughout the world. For more information about Cubic, see the company's Web site at cubic.com.

SmarTrip.is a registered trademark of the Washington Metropolitan Area Transit Authority.