Star Navigation Systems Group Ltd.

Star Navigation Systems Group Ltd.

March 15, 2005 16:05 ET

Star Navigation Engages Advisors


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STAR NAVIGATION SYSTEMS GROUP LTD.

TSX VENTURE SYMBOL: SNA

MARCH 15, 2005 - 16:05 ET

Star Navigation Engages Advisors

TORONTO, ONTARIO--(CCNMatthews - March 15, 2005) - Star Navigation
Systems Group Ltd. 'Star Navigation' (TSX VENTURE:SNA), is pleased to
announce it has retained Global Management Services Group and Blueback
Capital Corp of Toronto Canada to provide consulting advice in
connection with one or more proposed capital market transactions. These
may include either a debt or equity financing to facilitate Star
Navigation's market penetration into India and other countries.

As previously announced March 9, 2005, Royal Airways of India executed a
Letter of Intent (LOI) to purchase Star's flagship product, the
'ISMS'™ - In-flight Safety Monitoring System. Boeing Co. will be
delivering Next-Generation 737-800's, and Star Navigation will be
installing the In-flight Safety Monitoring System. The airline has also
chosen Star Navigation to manage all real-time data monitoring from its
Toronto operations centre.

India's burgeoning airlines are expected to order over 200 new aircraft
in 2005, and investment in the sector is set to rise to over $6.6
Billion. Star Navigation is currently in advanced discussions with all
other Indian airline operators, and the strong vote of confidence from
Royal Airways along with endorsement from the Government of India adds
significant credibility to Star's sales efforts in India and other
regions. Star Navigation's flagship product 'ISMS'™ is fully
developed, operational and in beta testing has exceeded expectations
time and time again. The Company anticipates announcing additional
signed agreements.

The proposed capital market transactions currently being sourced by the
company's advisors not only looks to ensure that the Royal Airways
installation is completed in a timely fashion - scheduled for April 18,
2005 - but also looks to source and secure necessary working capital to
initiate the global installation of Star Navigation's flagship product
'ISMS'™ in India and to begin marketing it throughout the world.

Star has agreed to pay to the advisors each a non-refundable sum of
$5,000 per month as a working fee and grant each of the advisors 375,000
consultant's options at a price of $0.10 per share, subject to TSX
Venture Exchange approval. The consultant's options will be fully vested
within four months and will be null and void 90 days after the advisors
cease to act for Star Navigation. The advisory agreement is for a term
of 12 months and may be terminated earlier by any party, for any reason
whatsoever, upon 30 days written notice.

About Global Management Group Inc. & Blueback Capital Corp.

Global Management Group Inc. is a privately owned investment company
operated by Thomas Stevenson. Mr. Stevenson has held positions in the
Insurance, Investment and Property Development Industries for over
thirty years possessing extensive experience in Management,
Administration, Marketing and Sales.

Blueback Capital Corp. is a private equity investment company. It's
President and Founder, Richard Buzbuzian, is a business executive with
extensive experience as both a principal and an advisor. Mr. Buzbuzian
has developed a strong rapport with the Canadian financial community
that includes the TSX Venture Exchange, regulatory bodies, various
investment houses and institutions. Possessing widespread experience of
the Canadian public securities sector, Mr. Buzbuzian is an active
independent director and Chairman of the Audit Committee of Armada Data
Corp. ARD: TSX V as well as serving as a director of and advisor to
other Canadian companies.

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
ground while analyzing and monitoring all on-board systems while 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.

37,642,889 shares outstanding

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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.