The coupled ocean atmosphere meso-scale prediction system (COAMPS) that includes the Navy Coastal Ocean Model (NCOM) has been configured for the Kuroshio Extension region using multiple one-way nested high-resolution grids. The coupled model system was used to simulate a strong cold air outbreak event from 31 Jan to Feb 7, 2005 in good agreement with meteorological data from a surface buoy data and QuikSCAT scatterometer winds. Latent heat fluxes and sensible heat fluxes were computed during the event with daily averages in excess of 1500 W/m2 and 500 W/m2, respectively, and combined instantaneous turbulent heat fluxes up to 2300 W/m2. The largest heat fluxes were found in two large meanders of the Kuroshio and along its southern flank. Strong gradients in turbulent heat fluxes coincided with strong sea surface temperature gradients and were maintained during the cold air out break simulation. The large turbulent heat fluxes lead to significant subtropical mode water formation during the event at a rate about 10 Sv in the cyclonic recirculation region south of the Kuroshio. This increased the volume of core layer mode water within the temperature range 16C to 18C by 10% , and increased the surface area of that layer directly exposed to the atmosphere by a factor close to 5 in the model domain.