OSI Geospatial Inc.
OTC Bulletin Board : OSIIF

OSI Geospatial Inc.

January 30, 2007 08:02 ET

OSI Geospatial Receives Simplified Voyage Data Recorder Product Type Approval and Secures First Customer

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - OSI Geospatial Inc. (TSX:OSI)(OTCBB:OSIIF) announced today that its International Operations' integrated ECPINS®/S-VDR 5000 system has been type approved by Bundesamt fur Seeschiffahrt & Hydrographie, a testing and certification authority based in Germany, and secured its first customer, INCO Ships based in Australia.

Under the latest International Maritime Organization (IMO) carriage requirements, all existing ships weighing more than 3,000 gross tons and engaged in international voyages must install a simplified voyage data recorder (S-VDR) by July 1, 2010. The S-VDR is similar to an airplane's "black box". It downloads data from the ship's navigation instruments and voice recordings from the bridge and radio communications that can be retrieved and analyzed following an accident at sea.

The ECPINS®/S-VDR 5000 product will enable ship operators to benefit from OSI's proven, world-leading navigation technology while meeting newly mandated IMO carriage requirements.

"The successful completion of the type approval process is an important milestone, as shipping companies can not install an S-VDR system unless it is certified," said Ken Kirkpatrick, president and CEO of OSI. "We are pleased to be working with INCO SHIPS as our first customer and look forward to securing other customers for this product."

INCO manages approximately ten to 12 ships, and it is expected that most of these ships will be fitted with S-VDR systems during the next two to three years. OSI expects that more than 30,000 ships will be required to install an S-VDR by July 2010. The majority of these vessels are just beginning to make plans for compliance.

About OSI Geospatial

OSI Geospatial Inc. delivers advanced systems and software to address the growing need for enhanced situational awareness in command, control, communications, and intelligence applications. By providing essential tactical and geospatial information, the company's systems and software help decision-makers know the precise location of mission operations across all military forces while integrating information with allies. OSI Geospatial systems are in use by military, government, and commercial customers around the world. The company is publicly traded on the Toronto Stock Exchange (OSI) and the Over the Counter Bulletin Board (OSIIF). For additional information please visit www.osigeospatial.com.

Forward-Looking Statements

Certain statements made in this news release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 138.4(9) of the Ontario Securities Act. These forward-looking statements are subject to risks and uncertainties. Actual results may differ from these projections. The risks associated with the Company's business include risks related to its reliance on international government contracts; the number of large customer transactions and the related lengthy sales cycles in executing those opportunities; uncertainties associated with competitive bidding processes and contract negotiations; actions by government authorities; the effects of general economic and political conditions; changing foreign exchange rates; and challenges related to the company's ability to introduce, develop and implement new products and enhancements to existing products that respond to customer requirements in a changing, complex, technological market. A complete discussion of the company's risk factors is presented in the company's most recent annual reports, filed with the United States Securities and Exchange Commission ("SEC") and the Canadian Securities Administrators ("CSA"), as well as other periodic reports filed with the SEC and the CSA. The Company does not undertake any obligation to update the forward-looking statements.

Copyright (C) 2006 OSI Geospatial Inc. and its affiliated or related companies. ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and may be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice.

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