October 1, 2001

Cubic Transportation Systems, a subsidiary of San Diego-based Cubic Corp., has won $15 million in contracts for a landmark project to link all bus operations in Virginia and Maryland to Washington, D.C.'s, Metrorail and parking facility smart card-based payment system.

The new contracts are the result of a unanimous decision by Virginia and Maryland bus operators to join the Washington Metropolitan Area Transportation Authority and Maryland Transit Administration, already under contract with Cubic, to link all regional public transit fare collection to WMATA's popular SmarTrip card system.

The SmarTrip system uses Cubic's GO CARD technology — an embedded computer chip and antenna that communicate via radio frequency with readers on faregates, ticket vending machines and parking exit processors, allowing commuters to pay for Metro train rides and Park-and-Ride facilities by simply placing their smart card near a card reader.

Cubic recently helped WMATA put in place another SmarTrip application, SmartBenefits, which allows participating federal and private sector employees to receive transit benefits directly on their SmarTrip cards. Designed and put in place by Cubic nearly three years ago, SmarTrip is the first contactless smart card introduced by a major mass transit system in the United States.

Last spring, Cubic won contracts for $20.7 million from WMATA and $21.9 million from MTA for equipment to make those agencies' buses SmarTrip-compatible. With the most recent contracts, which stem from a WMATA contract provision allowing 13 northern Virginia and Maryland suburban regional bus operators to share that agency's pricing benefits, Cubic will receive a total of $58.6 million to complete the unique interstate/intermodal regional "smart" payment system installations by mid-2003.

"In order to ensure the future success of mass transit and meet Maryland's goal of doubling transit ridership by the year 2020, it is imperative that we implement an integrated fare collection system that works conveniently for citizens throughout the state and throughout the region," says Virginia L. White, acting administrator of the Maryland Transit Administration "When this new Smart Card Technology is in place, traveling between Maryland, D.C., and even Northern Virginia becomes simplified with just the wave of a card."

Under the new contracts, the regional buses will get new fareboxes or check-in/check-out validators, equipped with Cubic's high-tech smart card readers for riders to pay their fares. Like the more than 200,000 smart card users in Washington, riders simply have to touch their cards to the high-tech card readers to board the bus.

"Cubic's smart card solution creates a transportation system without borders, where riders no longer have to carry different fare cards to transfer between the bus or train or from one carrier to another," says Walter C. Zable, president and CEO of Cubic Transportation Systems. "Our technology allows transit agencies with varying fare structures to participate in integrated regional ticketing."

Cubic will integrate new bus fareboxes and validators with the Tri-Reader, Cubic's core technology for supporting system compatibility among all the participating agencies. Tri-Reader is one of Cubic's Nextfare(TM) Solution Suite advanced smart card tools, developed to plug into new and existing mass transit systems. The technology provides migration to an open architecture, ensuring transit agencies flexibility in selecting smart cards from a variety of suppliers.

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Falling demand for gasoline, coupled with ample supplies, led last week to falling pump prices for the second consecutive week throughout Southern California, reports the Automobile Club of Southern California's Weekend Gas Watch.

In the period immediately following the Sept. 11 terrorist attacks in New York and Washington, D.C., some people feared that there would be interruptions in the availability of gas. However, the opposite has been true and market conditions point to further declines in coming weeks.

The price in the Los Angeles/Long Beach reporting area was $1.591 per gallon, 2.5 cents lower than the price at this time last week.

The price in San Diego was 1.724, 1.5 cents lower than last week's average.

The Weekend Gas Watch monitors the average price of gasoline at popular destinations for motoring trips.

"No one should have fears that if they take a driving trip that there will not be enough gasoline available, or the price will be abnormally high," says Carol Thorp, Auto Club spokesperson. "There is ample gasoline throughout California and our region, and that gasoline is at reasonable prices."

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San Diego-based HNC Software Inc. will simultaneously Webcast a conference for financial analysts and investors on Oct. 4 from 1:30 to 5:30 p.m.

The Webcast can be accessed through the Investor Relations section of HNC's Web site: www.hnc.com.

During the conference, HNC executives will review topics including, but not limited to, the company’s growth strategy and vision, investments, acquisitions and product offerings.

A recording of the Web cast will be available for 30 days after the event on HNC's Web site: www.hnc.com.

HNC is a leading provider of high-end analytic and decision management software that enables global companies to manage customer interactions by converting data and business experiences into real-time recommendations designed to increase revenues and decrease risk. HNC's software empowers Global 2000 companies in the financial services, insurance, telecommunications and other industries to make millions of the right mission critical customer decisions and take action in real time.

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Gateway Inc., which officially moves its headquarters today to a Poway industrial park, has begun to offer computers set up specifically for the legal industry through agreements with leading software companies.

Beginning October 1, legal professionals will be able to order Gateway desktop and notebook PCs delivered with two applications used widely among the legal community, including Amicus Attorney, case management software made by Gavel & Gown, and/or Timeslips time and billing software, made by Sage US Holdings Inc.

Gateway says this agreement between industry leaders specifically addresses the needs of the legal community with a comprehensive computing solution that simplifies the procurement and installation of technology in small- and medium-sized law firms by making both hardware and software available from one vendor. The company says that combined with a myriad of personalized services and local support through Gateway stores across the U.S., lawyers now have a single source to turn to for all their technology needs.

"Based on valuable input from the attorneys on our Legal Advisory Council, we designed the Gateway Legal Solution to address a law firm's most critical need — the ability to purchase hardware and legal software plus have it installed by one vendor," says Jim Jones, v.p. of segment marketing for Gateway. "One-stop shopping is a tremendous value to small- and mid-sized law firms, which typically don’t have computer support personnel on their staff.

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The San Pasqual Academy has opened, offering a home, a sound education, and a bright future for up to 250 foster youth between the ages of 14 and 18.

Officials from the San Diego County Board of Supervisors, the Child Abuse Prevention Foundation, San Diego County Office of Education, New Alternatives Inc. and supporters from throughout San Diego County gathered for a formal dedication and ribbon-cutting to mark the academy's opening Friday at 11 a.m. The event was held at the academy campus, located at 17701 San Pasqual Valley Road in Escondido.

San Pasqual Academy is a residential education campus that offers San Diego County foster teens a safe, stable and caring home where they can learn the academic, social and life skills that will allow them to become productive and successful adults.

"San Diego County has taken a leadership role in creating the San Pasqual Academy to make sure our region's foster teens have the best opportunities to learn, succeed and achieve," says Supervisor Greg Cox, a long time advocate for foster youth. "More often than not foster teens, who find themselves in 'the system' through no fault of their own, move in and out of foster homes and between schools 10 or more times before the age of 18. With the opening of San Pasqual Academy, foster teens have an extraordinary place where they can live and learn in a stable environment."

"The County of San Diego is making foster care history today with the opening of San Pasqual Academy," says Supervisor Ron Roberts, who initiated the effort to build the Academy with Supervisor Cox. "There is no question in my mind that this new approach will give our foster teens a much better chance at success and happiness as they move into adulthood. Several communities throughout the U.S. are already watching to see how the Academy's program can be emulated to successfully address their foster care needs."

The San Pasqual Academy will be home to young people like Roberta Arredondo, a young woman who grew up moving between dozens of foster homes and now sits on San Pasqual Academy's Youth Advisory Panel.

"The San Pasqual Academy is a true home for foster youth," said Arredondo. "I am really happy to have been a part of the planning process and I know that this is the right thing to do for foster teens."

"San Pasqual Academy is a stable, four-year high-school experience that these foster teens might not otherwise have," says Bobbie Plough, San Pasqual Academy principal. "Through state of the art technology and career preparation resources, a college preparatory curriculum and a low student to teacher ratio, the Academy will provide students with real opportunities to excel."

In addition to the fully accredited high school operated by the San Diego County Office of Education, nonprofit provider New Alternatives Inc. will direct and operate the Academy's residential program, including student family homes, house parents, medical care, individualized counseling, independent living skills training, employment and volunteer opportunities.

The 238-acre residential education campus, located in the pastoral San Pasqual Valley, will eventually be home to 250 high school age youth. These youth have had multiple placements, have no identified guardian, adoptive parent or kinship caretaker and do not have a stable placement. The campus includes family homes, classrooms, an auditorium, student union, swimming pool, gymnasium, recreational fields and a state of-the-art technology and career preparation center.

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ViaSat Inc. has been awarded an option exercise and delivery order valued at slightly more than $12 million for multifunctional information distribution system low volume terminals pursuant to the terms of a contract awarded in January.

The MIDS LVT provides secure, high capacity, jam resistant, digital data and voice communications capability for US Navy, US Air Force, and US Army platforms.

ViaSat will perform work along with its teammates and planned subcontractors Harris Corporation (NYSE: HRS) and the Xetron subsidiary of Northrop Grumman (NYSE: NOC). The period of performance started last month with terminal deliveries expected in December 2003.