OSI Geospatial Inc.
OTC Bulletin Board : OSIIF

OSI Geospatial Inc.

November 28, 2006 08:01 ET

OSI Geospatial Signs US$29 Million Contract to Deliver W-AIS Systems to the U.K. Royal Navy

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 28, 2006) - OSI Geospatial Inc. (TSX:OSI)(OTCBB:OSIIF) announced today that its international systems business has now signed the prime contract with the United Kingdom Ministry of Defence (MOD) to deliver Warship Automatic Identification Systems (W-AIS). On November 2, 2006, the company announced its selection as the preferred bidder for a contract valued at approximately US$29 million, including all options. The company will begin delivery immediately and will recognize a portion of the revenue from this contract in fiscal 2006.

"In February, 2003, the Ministry of Defence selected our world leading Electronic Chart Precise Integrated Navigation System as the fleet standard for navigation software within their Warship Electronic Chart Display and Information System. This W-AIS contract award confirms that our strategy to leverage our core technology to enter new markets is working," said Ken Kirkpatrick, President and CEO of OSI Geospatial. "The W-AIS contract is our first prime contract with the Ministry of Defence and the largest contract award for the company. It is a significant milestone, and we are confident that it will lead to substantial new business with this very important customer."

The MOD W-AIS will be installed in platform Operations and Control Rooms and integrated into the Warship Electronic Chart Display and Information System (WECDIS) located on the bridge of the naval ship. This system will enhance maritime interdiction operations, operations room situational awareness, and contribute to the recognized maritime picture. The W-AIS will be deployed on up to 77 naval ships and could be deployed on naval aircraft in the future.

OSI's strategy to become the world leader in the emerging WECDIS market is well underway, with eight navies and three coasts guards using its navigation products. To support their extensive training requirements, the company's customers invest substantial resources in building infrastructure around OSI's technology. OSI is leveraging this investment to enter adjacent markets, including the W-AIS market. The company strongly believes that the W-AIS technology will be a requirement for most navies, including ships and aircraft. OSI is well positioned to develop this market and establish a leadership position.

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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