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

OSI Geospatial Inc.

April 26, 2007 08:00 ET

OSI Geospatial Signs Contract to Provide Navigation Systems to the U.S. Navy

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 26, 2007) - OSI Geospatial Inc. (TSX:OSI)(OTCBB:OSIIF) announced today that its U.S. Systems Operations has signed a US $500,000 contract to provide the U.S. Navy with military navigation systems. The systems will be installed on 12 new vessels that are being built to support homeland defense initiatives.

"This is a very important win for us, as the U.S. government is planning to build hundreds of small vessels over the next three to five years to support homeland defense and other military requirements. This contract positions us well for further wins," said Ken Kirkpatrick, president and CEO. "We are pleased that our world leading ECPINS®-M navigation system has been selected for this project."

The U.S. government and many other governments around the world are committing substantial resources towards coastal and harbor defense initiatives. There is an increasing demand for small vessels that can be deployed quickly to identify and respond to security threats. OSI's warship navigation technology and market leadership position provides the company with a clear advantage in pursuing this market.

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) 2007 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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