Star Navigation Systems Group Ltd.

Star Navigation Systems Group Ltd.

March 22, 2005 08:30 ET

Star Navigation Announces Debt for Equity Conversion


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STAR NAVIGATION SYSTEMS GROUP LTD.

TSX VENTURE SYMBOL: SNA

MARCH 22, 2005 - 08:30 ET

Star Navigation Announces Debt for Equity Conversion

TORONTO, ONTARIO--(CCNMatthews - March 22, 2005) - Star Navigation
Systems Group Ltd. 'Star' (TSX VENTURE:SNA), is pleased to announce,
subject to TSX Venture Exchange final approval, an agreement in
principal to exchange $1,179,704 CDN of Star's current and long term
liabilities for common shares of Star at $0.15 per share.

Upon successful completion of the debt for equity conversion, and upon
the successful closing of the previously announced private placement
announced March 21, 2005 the company shall have 48,707,582 shares issued
and outstanding.

"The debt for equity conversion is a very strong vote of confidence for
our company, our technology and our future. A materially significant
amount of Star's current obligations will now be eliminated providing
Management the opportunity for the first time to focus its efforts
exclusively on the global marketing and installation of its flagship
products. The debt for equity conversion also provides the impetus for
future capital market financings necessary to fully exploit Star's
growth potential," reports Hilary Vieira, President.

On closing, the companies Advisors, will actively seek to identify a
Canadian Securities Investment Firm to source and secure additional
working capital to initiate the global installation of Star Navigation's
flagship product 'ISMS' ™ in India and to continue marketing
throughout the world.

About Star Navigation Systems Group Ltd.

The Aviation Industry is under constant pressure to minimize operating
costs and operators are constantly looking for ways to improve
profitability. Star Navigation's flagship product ISMS™ not only
enhances aviation safety and passenger comfort, it also improves fleet
resource management that dramatically minimizes flight operating costs.
The ISMS™ is the only comprehensive decentralised system that
provides fleet performance awareness to the aircraft operator globally
using the Internet. It is the only system that exists today to trend the
performance of the aircraft and predict the possibilities of occurrences
of incidents in real-time while dramatically reducing costs for the
operator.

Star Navigation's flagship product, the ISMS™ is the first system in
the world to offer a real-time connection between an airplane and the
ground while analyzing and monitoring all on-board systems as the
aircraft is in flight. Both the FAA and Transport Canada have certified
The ISMS™ product.

An independent valuation in January 2002 placed the value of the
Company's technology in excess of $50 million.

Certain statements contained in this News Release constitute
forward-looking statements. When used in this document, the words "may",
"would", "could", "will" 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. Star does not assume any
obligation to update these forward-looking statements

48,707,582 shares outstanding
(post-closing of the above noted transactions)

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Star Navigation Systems Group Ltd.
    Hilary Vieira
    President
    (416) 252-2889 x32
    Hilary.Vieira@star-navigation.com
    or
    Blueback Capital Corp.
    Richard Buzbuzian
    Advisor
    (416) 366-0010 ext 264
    rbuzbuzian@star-navigation.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.