SAN DIEGO–(BUSINESS WIRE)–Oct. 15, 2002–The San Francisco Bay Area Rapid Transit District (BART) today launches a new fare collection system, developed by Cubic Transportation Systems Inc., a subsidiary of San Diego-based Cubic Corp. (AMEX:CUB).

“The rollout of this equipment will mean added convenience to our customers and will improve our station management,” said Thomas Margro, BART general manager. “Cubic has worked closely with BART staff to ensure the successful launch of our revenue management equipment.”

The delivery is part of a $31 million contract Cubic received in 1999. Added scope and other options exercised since the initial contract have increased the total BART order for Cubic products to $53 million.

Cubic is replacing ticket vending machines, add-fare machines, and faregates at 43 BART rail service stations, including the San Francisco Airport extension. The new system supports the magnetic ticketing now in use at BART and has the infrastructure in place for future integration of smart card technology.

So far the new equipment has been installed at the Concord, Fruitvale and 19th Street stations. Each station is being phased into revenue service as the new equipment is installed. The modernization program is scheduled for completion in 2003.

“We are pleased to be providing a new fare collection system that will support BART’s mission of providing reliable and customer-friendly public transit services,” said Walter C. Zable, president and chief executive officer of Cubic Transportation Systems Inc. “It also will support BART`s plan to work with other transit operators to integrate a regional smart card.”

The new equipment uses a processing architecture compatible with Cubic’s Nextfare(TM) Solution Suite for advanced integrated ticketing, including the Tri-Reader(R), the transit industry’s first card reader that processes multiple smart card technologies. Other technology improvements include easy-to-use, ATM-style menu-driven screens and credit/debit card payment on the ticket vending machines.

Cubic Transportation Systems is the world’s largest provider of integrated electronic ticketing systems and has smart card contracts for public transit systems in North America, Europe and Asia. Every year, nearly 10 billion people use Cubic 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 and Miami. As part of the TranSys consortium, Cubic also is supplying the entire automated fare collection system including smart cards for the London PRESTIGE project.

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.

Recently, Cubic added a security group to expand its smart card technology into non-transit uses including parking, security, and access control. For more information about Cubic, see the company’s web site at www.cubic.com.

CONTACT: Cubic Corp., San Diego

Jae Lande, 858/505-2642

[email protected]