Cubic Transportation Systems, On Track Innovations Sign Licensing and Cooperation Agreement

San Diego, Calif., and Rosh Pina, Israel (PROTEXT) - CubicTransportation Systems, Inc., the world leader in transportationfare payment systems, and On Track Innovations Ltd. (OTI), aleading supplier of contact/contactless microprocessor-basedsmart card technology, have signed a licensing and cooperationagreement aimed at delivering transit authorities flexibility insmart card choices, the companies announced today. Under theagreement, Cubic will integrate OTI's EYECON(TM) smart cardproducts with Cubic's Tri-Reader(TM) multi-protocol contactlesssmart card reader, the first such device capable of processingthree contactless smart card types. OTI's EYECON products utilizethe ISO 14443 Type B contactless interface. Followingcertification, Cubic will be in a position to offer additionalcard types including EYECON for use in its fare collectionsystems. "The key to this agreement with OTI is that transit agencieswill have greater flexibility in their choice of farecards thathas not been available until now. This will give transitauthorities opportunities for expanded business relationships andthe ability to tie into multi-application business models," saysPhil Dixon, Cubic senior director of Strategic/Product Planning."There are variations in the processing capabilities between thedifferent smart cards on the market today. By giving ourcustomers a solution for processing multiple card types withintheir fare collection systems - specifically the EYECON cards,Cubic's GO CARD(R), and other ISO 14443 standard contactlesscards - our customers will have options for tailoring theirbusiness decisions to their own unique requirements," Dixonstated. "By leveraging CTS's worldwide installed customer base,we will create an attractive, cost-effective and secure solutionfor different customers that are looking to implement securedcontact /contactless smart card solutions, while addressingmultiple applications such as transit, loyalty, telecommunicationand more on a single smart card," says Ohad Bashan, president ofOTI America. "This is a perfect tie-in for the customer who islooking to merge between different markets and applications withmaximum security on the same platform." About CubicTransportation Systems Cubic Transportation Systems, a subsidiaryof Cubic Corporation (AMEX:CUB) in San Diego, is the world'slargest integrator of automated fare collection systems in majorcities including London, New York, Chicago, Washington DC,Sydney, Shanghai, and Singapore. Having pioneered the use ofstored value cards in mass transit using magnetics, Cubic is nowsupporting its customers wanting to migrate to contactless smartcard fare payment technologies. Cubic has developed a number ofcontactless smart card reader products such as the Tri-Reader,which can process most standard contactless smart cardsavailable.

In addition, the company provides all levels ofsystems and services from central clearinghouse and datawarehousing, to gates, ticket vending machines, and fareboxes forbuses, to smart card and magnetic stripe readers.

About OnTrack Innovations OTI is the world's pioneer in microprocessor-based contactless smart card technology. The company hasdeveloped a portfolio of patented contactless smart cardtechnologies, including the microprocessor-basedcontactless/contact EYECON' MultiCard system, which providesoptional DES, Triple-DES, RSA or ECC level data encryptionbetween the card and the reader. In 1997, OTI was awarded theprestigious ESCAT Award for the "Most Innovative Smart CardAccomplishment of the Year." Established in 1990, OTI hasapplied its technologies in a variety of applications worldwide.The implementation of numerous applications such as theelectronic purse, mass transit, parking, gas management systems,loyalty schemes, ID and security as well as other uniquecustomized applications have put OTI and its products at thecutting edge of contactless smart card technology. Headquarteredin Israel, OTI has offices and subsidiaries in the United States,Europe, Africa, and China. For more information, please visitOTI's website. Ohad Bashan, President, OTI America

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