OSI Geospatial Inc.
TSX : OSI
OTC Bulletin Board : OSIIF

OSI Geospatial Inc.

November 30, 2006 08:01 ET

OSI Geospatial Awarded Support Contract With the Canadian Navy Valued at U.S. $4.0 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2006) - OSI Geospatial Inc. (TSX:OSI)(OTCBB:OSIIF) announced today that its international systems business has been awarded a support contract with the Canadian Department of National Defence (DND) valued at a more than $4.0 million, including all options. The contract has a fixed provision of approximately $1.7 million over three years and an optional provision of up to $2.3 million over four years. Under the terms of the contract, OSI will provide the Canadian Navy with hardware and software support and maintenance.

"This is the third instance of long term support for our WECDIS products. We also have a 10 year fleet-wide support contract with the New Zealand Navy and a 30 year software support contract with the Royal U.K. Navy. Long term support provides evidence that our customers are committed to our technology and provides a stable recurring revenue base that we can count on," said Ken Kirkpatrick, President and CEO of OSI Geospatial. "We are very pleased to expand our long-standing relationship with the Canadian Navy."

The Canadian Navy currently deploys OSI's Warship Electronic Chart and Display Information System (WECDIS) product on more than 50 vessels fleet-wide. OSI delivered the first electronic chart navigation system to the Canadian Navy in 1985. Fleet installations began in 1997 and continued in 2001. Training facilities for WECDIS are in place across Canada at all of the navy's training schools. This is one of the most advanced fleet and training-school implementations of electronic chart navigation systems in the world.

OSI is the leading supplier of electronic chart navigation systems and software for navigation and situational awareness to NATO and its close allies. In addition to the Canadian Navy, OSI is fleet supplier to the navies of the United Kingdom, Australia, Denmark, New Zealand, and Portugal.

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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