Star Navigation Systems Group Ltd.
TSX VENTURE : SNA

Star Navigation Systems Group Ltd.

November 25, 2013 07:17 ET

Star Announces Sale of STAR-A.D.S.™ to Almasria Universal Airlines

TORONTO, ONTARIO--(Marketwired - Nov. 25, 2013) - Star Navigation Systems Group Ltd. (TSX VENTURE:SNA) ("Star" or the "Company"), is very pleased to announce that Almasria Universal Airlines ("Almasria") of Egypt has now placed a firm purchase order with Star for the installation and activation of the STAR-A.D.S.™ system on two (2) of its aircraft, an Airbus A-320 and an Airbus A-321.

The purchase order from Almasria contemplates installation commencing immediately upon receipt by Star of the required Supplementary Type Certificates ("STC's"), expected to take approximately 60 days from receipt of specific aircraft documentation. Star personnel have already been dispatched to Egypt and have commenced work on the STC program.

Almasria has been offered a unique choice of payment options. Within seven months of activation of the system, Almasria must elect to either purchase the two systems outright or, in the alternative, Almasria may elect to make no payment for the hardware components of the system, provided that they share the value of fuel savings realized through the use of the system with Star on a 50-50 basis. (Almasria will pay Iridium charges per flight hour and monthly licensing fees in any event). Should AlMasria feel that the fuel savings exceed their expectations, they can purchase the units outright and discontinue the profit share.

Star feels confident that, properly utilized, the STAR-A.D.S. ™ system can help AlMasria save approximately 3-5% of their fuel budget. Based on each aircraft flying 2500 hours per year, the aircraft would consume approximately $17,000,000 worth of fuel a year. Star's portion of the savings could be between $255,000 and $425,000 per year based on the profit share arrangement. Over the 5 year term of the contract, the compensation could be between $1,275,000 and $2,125,000.

Star feels confident that Almasria will choose to purchase the units.

The value of an outright purchase for the 2 aircraft, based on list prices, together with estimated airtime, licensing and "alerts" charges over the 5 year term of the contract is approximately $570,000 USD depending upon usage.

Almasria management said,

"Although the potential fuel savings really got our attention, we also like the ECM, FOQA and MOQA monitoring provided by Star-A.D.S. ™ together with its ease of use."

Viraf Kapadia, Star CEO said,

"This order from Almasria for installation on board the A-320 and A-321's, two of the most popular commercial aircraft, will provide a stable revenue stream and allow us to further showcase our STAR-A.D.S.™ service. It also allows us to participate in the development of Almasria, a young, dynamic airline, located in a key part of the world. Almasria has indicated that it intends to expand its fleet in the near future and Star looks forward to contributing to its success. Together with our other STC's, we now are able to cover nearly 50% of the world commercial fleet of passenger planes. This order positions us strategically and commercially on several fronts".

Actual revenue generated by this contract will be included in our regular financial statements in accordance with our stated revenue recognition policies. Estimates of installation times and revenue recognition are correct to the best of our knowledge at this time. However, Star reminds shareholders and the investing public in general that actual results may vary as a result of factors beyond our control.

About Almasria Universal Airlines: Almasria Universal Airlines was established as a charter airline in Egypt in 2008, and operates mainly between Egypt and Europe.

About Star Navigation: Star Navigation Systems Group Ltd. (www.star-navigation.com) owns the exclusive worldwide license to its proprietary, patented In-flight Safety Monitoring System, the first system in the world to feature in-flight data-analysis, monitoring and diagnostics with a real-time connection between aircraft and ground. Its real-time capability of tracking performance-trends and predicting incident-occurrence enhances aviation safety and improves fleet management while reducing costs for the operator.

The STAR-A.D.S.™ service, based upon Star's patented STAR-ISMS® technology, offers airline operators unparalleled real time access to specific, targeted, analyzed performance data from the aircraft, while in flight. It can detect issues as they happen, allowing flight operations to either schedule appropriate maintenance or to take other more immediate action. Amongst other benefits, it facilitates effective fuel management and simplifies FOQA, MOQA and ECM reporting, as well as OOOI time recording.

Certain statements contained in this News Release constitute forward-looking statements. When used in this document, the words "may", "would", "could", "will", "can help"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.

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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