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Police Training Simulators Press Release

May 13, 2004

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U.S. Air Force Awards AIS, Inc. Small Arms Training Contract

High technology training replaces existing systems

SEATTLE - Advanced Interactive Systems, Inc. (www.ais-sim.com) has been awarded a contract for small arms training systems for the United States Air Force’s Headquarters Air Combat Command (ACC) at Langley Air Force Base, VA. AIS teamed with the Simulation Systems Division (SSD) of Cubic Defense Applications, a subsidiary of Cubic Corporation (AMEX:CUB), to develop an innovative solution to meet the training needs of the U.S. Air Force.

“AIS has worked hand-in-hand with Cubic for this collaborative effort,” says Tim May, president and CEO of AIS, Inc. “We’re thrilled to be able to offer such a dynamic training system, jointly with Cubic, that will provide U.S. military forces the best available training in the world,” May added.

The U.S. Air Force’s ACC is purchasing 15 advanced 10-lane Engagement Skills Trainers (EST 2000) systems, along with AIS providing 450 M16A2 rifles, M4 carbines, and M9 pistols and PRISim™ accessories - i.e., state-of-the-art ShootBack™ Cannons. The EST 2000 systems will be fielded to 15 different ACC sites throughout the U.S. Air Force. This order will replace outdated existing training simulators and greatly expand current training capabilities within the USAF. The joint AIS and EST 2000 systems will allow ACC to conduct marksmanship, collective and judgmental firing skills.

“We look forward to continuing our long-standing relationship with AIS and providing the USAF with one of the finest virtual training tools available today,” said Terry Kohl, Vice President and General Manager of Cubic Simulation Systems.

About AIS
Advanced Interactive Systems, Inc., provides comprehensive training solutions for people in positions where lives are on the line, including aviation, law enforcement, military, government, security, corrections and emergency responders. AIS builds PRISim training simulators that provide lethal and less-lethal weapons handling and judgment skills. The AIS Ltd. group designs and builds anti-terrorist and other special application training facilities for military and special operations groups, with installations in more than 60 countries. The Reality Response Division manufactures interactive simulation systems and synthetic environments that provide reality-based training for CBRNE (Chemical, biological, radiologic, nuclear, explosive) hazard response tasks. NASS, a wholly owned subsidiary, provides counterterrorism and security planning. AIS is a privately owned company with offices in Washington D.C.; McLean, Virginia; Monterey, California; Orlando, Florida; Abu Dhabi, United Arab Emirates; and London, England.

About Cubic
The Cubic Defense Applications group, one of Cubic's two major segments, provides realistic combat training systems for military forces as well as simulation training, force transformation assistance, educational services, operations & maintenance, and manufacturing services. The group also supplies products and systems for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue avionics and radio communications for military and civil markets. The corporation's other major segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit.