Star Navigation Systems Group Ltd.
TSX VENTURE : SNA

Star Navigation Systems Group Ltd.

June 23, 2010 11:00 ET

Star Navigation Announces Approval of Debt Settlement Agreement-Berlin Air Show Update

TORONTO, ONTARIO--(Marketwire - June 23, 2010) - Star Navigation Systems Group Ltd. (TSX VENTURE:SNA) ("Star" or the "Company"), focused on providing technology based Aerospace Solutions - including both hardware and software platforms to assist aviation operators worldwide - announces that the TSX Venture Exchange ("TSX-V") has accepted for filing the Company's share for debt conversion transaction (the "Debt Settlement") announced May 5, 2010. 

Pursuant to the TSX-V approval, the Company will issue from treasury 1,922,165 common shares of the Company at a deemed price of $0.20 per share to three creditors of the Company, which will result in reducing Star's debts to these creditors by $384,433. The shares issued to the creditors will be restricted from sale for a period of 180 days after the date of issue. Two of the other creditors participating in the Debt Settlement are officers and directors of Star, and in this regard will convert $629,495 in outstanding and accrued management fees for a total of 3,147,475 common shares. The TSX-V has issued conditional approval in respect of this transaction, subject to disinterested shareholder approval at the next meeting of shareholders. The issuance of the Debt Settlement Shares will not result in a change of control. 

As previously announced, (see Release June 8, 2010), a team from the Company recently attended the Berlin Air Show. CEO Viraf Kapadia, Chief Technology Officer Dale F. Sparks and Manager-Sales and Marketing, Joel Chotte made full use of the opportunity to expand Star's contacts with attending Airlines, Maintenance, Repair and Overhaul ("MRO") providers and other interested parties, many of whom expressed interest in continuing discussions with Star at the upcoming Farnborough Airshow (July 19 – 25, 2010), in the United Kingdom.

Certain statements contained in this News Release constitute forward-looking statements. When used in this document, the words "may", "would", "could", "will" and similar expressions, as they relate to Star or its management are intended to identify forward-looking statements. Such statements reflect Star's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Star's actual performance or achievements to vary from those described herein. Should one or more of these factors or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Star does not assume any obligation to update these forward-looking statements.

This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com/ir/StarNavigation and view the Star Navigation IR HUB. Alternatively, investors are asked to e-mail all questions and correspondence to SNA@Agoracom.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this release.

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