Cubic in Groundbreaking Initiative with Barclays Bank

Cubic Corporation (AMEX:CUB), one of the principal members of the TranSys consortium, the developers of Transport for London’s Oyster smart card transit fare collection system, said the consortium has struck an exclusive deal with Barclays Bank in London for development of a new card that will host both Oyster and Barclaycard Visa on one piece of plastic. The first cards to include Oyster will be tested in London in early 2007. Since the introduction in 2003, Oyster smart cards have become a huge success with more than 6 million in use on the transport network. This new initiative will make future travel with Oyster even more convenient. The new card will see Oyster included for the first time on a dual interface card. The contact interface will manage Barclaycard payments while the contactless interface will have two separate and distinct functions: Oyster for transit, and a low value, contactless payment capability. This merging of the transit application, with its unique standards and sets of fare rules, onto one piece of plastic along with contactless payment for low value transactions, offers the transit authorities an optimum way to reduce costs, gain revenue and increase passenger satisfaction. "Oyster is one of the most recognizable brands in public transportation around the world,” said Steve Shewmaker, managing director of Cubic Transportation System, Ltd. "The deal with Barclays, which unlocks the value of the brand, is unique in the transportation world and will benefit not only TranSys but TfL and Barclays as well.” Mayor of London, Ken Livingstone said: "Oyster has been a great success making journeys across London, cheaper, easier and quicker, but we want to make Oyster even more convenient. This new deal will mean that from next year people can buy low cost items and take advantage of Oyster fares on the same card, reducing the need to carry cash.” The new card will serve three separate functions: As a Standard chip and PIN Visa credit card As an Oyster card and The new ‘wave and pay’ Visa card allowing contactless payment for transactions of up to £10. ‘Wave and pay’ means faster, more convenient payments as there is no need for a PIN or signature. The Oyster-Barclays card will reduce the need to carry cash and is well suited for retail purchase for items such as fast food, newsagents, parking facilities and vending machines. Background Cubic and EDS formed the TranSys consortium to bid on the 17-year PRESTIGE contract, a Private Finance Initiative. Cubic, which has a 30-year history of contributions to public transport in the UK, began work on the PRESTIGE smart card project in 1998. Cubic designed, developed and installed the extensive Oyster card system for London’s Underground and buses, while EDS manages the operations of the Oyster system. TfL and the UK government have plans to extend Oyster facilities to Train Operating Companies that operate into and out of London, so that those passengers will soon have the option of paying for their fares using a single card – Oyster. Since its implementation, the Oyster card system has been recognized with five awards. In 2004 the PRESTIGE-Oyster card system won the Modernising Government Award from the New Statesman magazine, honoring it for the most innovative use of information and communications technology that has made a difference in public life. In 2005 Management Today recognized the system with a Gold award for Technology Exploitation for the design, implementation, management and marketing of the Oyster card system. Also in 2005 a panel of judges from the government, banking and accounting industries selected PRESTIGE-Oyster as the Best Private Finance Initiative in two categories: Best Operational Transport Project, and the Grand Prix as the Best Operational Project – All Sectors. Cubic Corporation is the parent of two major segments: transportation and defense. Cubic Transportation Systems is the world’s leading full-service systems provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic Transportation Systems has delivered over 400 automated fare collection projects in 40 major markets on five continents, and offers security solutions developed specifically for public transportation infrastructure. The Cubic Defense Applications group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems is the proud recipient of the Frost & Sullivan 2006 Industry Innovation & Advancement of the Year Award. For more information about the company, please visit www.cubic.com.