Defense/Aerospace Industries

[DewDiligence]

Cubic Receives $10M Contract to Provide Fare-Collection Technology for NYC Buses

http://finance.yahoo.com/news/Cubic-Receives-10-Million-iw-1751831530.html?x=0&.v=1

›Wednesday April 7, 2010, 7:00 am EDT

NEW YORK, NY--(Marketwire - 04/07/10) - The MetroCard® system that Cubic designed and delivered to New York City Transit 17 years ago remains one of the top-performing fare collection systems in the world, processing more than 8 million transactions a day. By September, the system's reach will expand further when Cubic Transportation Systems, Inc., transportation subsidiary of Cubic Corporation (NYSE: CUB), delivers 200 new advance-pay fare machines for Select Bus Service routes.

Under a $10 million contract signed last year, Cubic will provide more than 200 MetroCard Fare Collectors to NYCT in an effort to speed bus service to handle increased ridership. Studies show that NYCT buses spend more than 20 percent of their time stopped waiting for passengers to board, transit officials say. With fewer stops, and dedicated traffic lanes and stoplights that change in the buses' favor, Select Bus Service routes are a cost-effective alternative to building new subways.

Cubic's MetroCard Fare Collectors will let people use their MetroCard to pay before the bus arrives. They are new, weatherized versions of the MetroCard Express Machines currently used in NYCT's subway system to accept credit or debit card payments.

Cubic installed modified MetroCard Express Machines on the first Select Bus Service route in the Bronx in 2008 as part of a pilot project to test the idea of prepaying bus fares.

"The pilot was hugely successful, and speeds things up quite a bit," said Steve Brunner, Cubic's Northeast regional director. "Transit officials and riders were extremely happy with it."

The new MetroCard Fare Collectors will be installed at stops on three Select Bus Service routes. The new machines have also been designed to withstand exposure to snow and rain and include user-friendly menus and screens, as well as a wireless network that connects to a central maintenance facility. Passengers insert their MetroCards into the devices and receive a receipt to show to an inspector on request.

The contract with New York City Transit includes a 2011 option for an additional 64 machines for a fourth Select Bus Service route.

About MetroCard®

MetroCard® is a registered trademark of the Metropolitan Transportation Authority ("MTA"). The MTA and New York City Transit have neither approved nor endorsed this article or any of its contents.

About Cubic

Cubic Transportation Systems, Inc. is part of Cubic Corporation. Cubic Corporation is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems. Cubic Defense Systems is a leading provider of realistic combat training systems and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services.

Transportation Systems is the world's leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic's solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London; New York / New Jersey region; Washington, D.C. / Baltimore / Virginia region; Los Angeles region; San Diego region; San Francisco Bay Area; Minneapolis/St. Paul; Chicago; Atlanta; Miami; Vancouver and Edmonton, Canada; Brisbane, Australia; Scandinavia, Germany and India.‹