Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Racom Systems (RCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Gutterball who wrote (254)	8/14/1998 9:35:00 AM
From: NightOwl	Read Replies (2) \| Respond to of 468

Friday August 14, 9:01 am Eastern Time Company Press Release Cubic Transportation Systems Awarded Key Role in Record Breaking Automatic Fare Collection Contract SAN DIEGO--(BUSINESS WIRE)--Aug. 14, 1998--Cubic Transportation Systems, a subsidiary of Cubic Corp., has been awarded the contract to provide automatic fare collection equipment for the London Transport PRESTIGE project, the most comprehensive upgrade of ticketing and revenue collection systems ever undertaken by London Transport. ''PRESTIGE represents one of the most significant mass transit projects ever undertaken and Cubic Transportation Systems, as the world leader in automatic fare collection systems for mass transit, is well placed to supply the equipment required,'' said John Lincoln, president and chief executive officer of Cubic Transportation Systems. The PRESTIGE contract has a value of about $1.75 billion over 17 years. Cubic Transportation Systems (CTS), will be responsible for providing a new ticketing and fare collection system that includes new automatic passenger gates, upgraded ticket-vending machines and new bus ticketing equipment as well as most of the maintenance. The new system will include the introduction of contactless smart cards. ''What this does is turn over operation of certain aspects of the London Transport fare collection system, including maintenance, to a private company of which we are a major partner,'' Lincoln said. ''It represents a major shift in government in which a private firm will be asked to provide what has traditionally been a public operated service. We believe this can become a model for transit systems in other parts of the world. ''This new system will provide London Transport with the most advanced fare collection technology available, enable it to achieve its goal of making it quicker and easier for their customers to travel and use public transport, and generally enhance the level of customer service,'' Lincoln said. The London Transport PRESTIGE contract was awarded to the TranSys consortium, of which Cubic Corp. is a major shareholder, under the Private Finance Initiative. The other TranSys shareholders are EDS, ICL and WS Atkins. Cubic installed the ticketing system currently in use throughout the 100-year-old subway network. Cubic won the contract for the London Underground's first automatic fare collection system in 1978 under the leadership of Ray deKozan (the current chairman of CTS) who played a key role in negotiating the latest contract. Cubic Transportation Systems has installed mass transit automatic fare collection systems in the world's largest metropolitan centers, including Washington, D.C., New York, Chicago, London, Guangzhou, China, Singapore, Kuala Lumpur, Hong Kong, Seoul and Sydney. In the near future, systems manufactured by CTS will also be in operation in Shanghai, Thailand and Canada. Cubic Corp. is traded on the American Stock Exchange under the symbol CUB. In addition to historical matters, this release contains forward-looking statements made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the company's business and prospects as they relate to the value of this contract to the company. The risks include competition and technology changes in the automatic fare collection industry, the effect of politics on negotiations and business dealings with government entities, changing economic conditions and fluctuations in exchange rates, and other political and technological factors that have an impact on public mass transit. Contact: Cubic Corporation Abe Wischnia, 619/505-2855