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

OSI Geospatial Inc.

May 07, 2008 09:25 ET

OSI Geospatial Signs US$10 Million Contract With the U.S. Army

OTTAWA, CANADA--(Marketwire - May 7, 2008) - OSI Geospatial Inc. (TSX:OSI)(OTCBB:OSIIF) announced today that its U.S. Systems Operations has signed a five year, US$10 million contract with the U.S. Army. Under the terms of this contract, the company will provide its land based command and control products and engineering services in support of U.S. Army operational requirements.

"We are very pleased to be signing this significant contract with this valued, long term customer, the U.S. Army. Our relationship has allowed for the exceptional progress in the development of our land based command and control products and, specifically, our Small Unit Situational Awareness system. The development of relationships and products such as these is critical to our growth strategy and this contract underscores the progress that we are making," said Ken Kirkpatrick, president and CEO of OSI Geospatial. "We strongly believe that we are well positioned to leverage this contract to develop future opportunities in the United States, United Kingdom and Canada."

There are more than 20 Soldier Modernization Programs (SMP) at different stages of development ramping up around the world, including the United States, United Kingdom and Canada. The common goals of these programs are to reduce blue casualties, raise operational tempo and increase readiness for future operations. A key requirement of all of these programs is to provide command, control, communications and intelligence (C3I) capabilities to the soldier. OSI is well positioned to leverage its Small Unit Situational Awareness (SUSA) technology to meet the C3I requirements of these programs.

About OSI Geospatial

OSI Geospatial Inc. delivers advanced geospatial systems and software that enable shared real-time situational awareness for military, safety and security applications. Our products and services enable our customers to integrate and visualize live data with any combination of sensor data, imagery, maps and charts. This capability provides our customers with enhanced operational performance, safety and security through shared real-time situational awareness. OSI Geospatial systems and software are in use by military, government, and commercial customers around the world. The company is publicly traded in Canada (OSI) and the U.S. (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) 2008 OSI Geospatial Inc. and its affiliated or related companies. ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. IGEN and C3CORE are registered trademarks of CHI Systems Inc., 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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