Star Navigation Systems Group Ltd.
TSX VENTURE : SNA

Star Navigation Systems Group Ltd.

December 09, 2011 08:00 ET

Star Navigation Announces No Amendments to Astrium Agreement-Enters Into New Licensing Agreement Regarding STAR-ISMS® Technology

TORONTO, ONTARIO--(Marketwire - Dec. 9, 2011) - Star Navigation Systems Group Ltd. (TSX VENTURE:SNA) ("Star" or the "Company") is very pleased to announce that it has been determined that no amendments are required to the agreement announced June 22, 2011 (the "June 22 Agreement") between Star and Paradigm Services Limited (an affiliated company of Astrium Services).

The June 22, 2011 agreement was subject to possible amendment or termination where a provision was found to be contrary to, and amendment was necessary to comply with, the TSX Venture Exchange rules or any other applicable Canadian securities regulatory authority legislation or rules.

A Special Committee of the Board of Directors of Star has determined that, having reviewed the terms and conditions of the June 22 Agreement, engaged the services of third party professionals, made all required filings and received the advice of outside counsel, the June 22 Agreement complies with the Rules of the TSX Venture Exchange and does not contravene the rules and regulations of Canadian Securities Regulators.

Star's CEO, Viraf S. Kapadia said,

"We are delighted to announce that the agreement to offer an airborne data service is now fully finalized. Teams from both companies have been working diligently since June in order to complete the detailed work necessary to integrate Star's STAR-ISMS® technology with Paradigm's expertise in secure Satcom, data handling, service delivery and satellite operations, so that we can jointly provide airborne data service to the aviation world."

This new airborne data service enables the real-time transmission of flight data to aircraft operators by utilizing on-board processors capable of analyzing actual flight performance against expected parameters. The service uses in-flight equipment that also compresses, encrypts and then securely transmits the data via satellite to ground stations, which then relay this information to airline operators, enabling in-flight visibility of performance from ground-based facilities.

Star is also pleased to announce that it has entered into a new Licensing Agreement (the "New License") with the owner of the patents covering the technology upon which the company's products are based. A condition of the June 22 Agreement requires the owner of the patents and / or Viraf S. Kapadia to assume personal or corporate liability in certain situations. These parties agreed to accept this condition in return for the payment of additional royalties. A Special Committee of the Board of Directors (which did not include the CEO, Viraf S. Kapadia) was formed in order to negotiate the terms and conditions of the New License on behalf of the Company. Having satisfied itself through its own research and the results of the report of a third party independent professional valuator, the Special Committee reported to the Board that the royalty provisions in the New License were in all respects fair and reasonable and in accordance with commercial norms.

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.

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.

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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