Star Navigation Systems Group Ltd.

Star Navigation Systems Group Ltd.

March 21, 2005 19:11 ET

Star Navigation Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STAR NAVIGATION SYSTEMS GROUP LTD.

TSX VENTURE SYMBOL: SNA

MARCH 21, 2005 - 19:11 ET

Star Navigation Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 21, 2005) - Star Navigation
Systems Group Ltd. 'Star' (TSX VENTURE:SNA), is pleased to announce,
subject to TSX Venture Exchange approval, a $320,000 CDN non-brokered
private placement at $0.10 per share.

On closing, the company will issue up to 3.2 million units that will
comprise of 1 common share and 1 purchase warrant that entitles the
holder of the warrant to purchase 1 additional common share of Star at
$0.15 per share. The term of the warrant is two years.

Shares will be restricted from trading pursuant to TSX Venture Exchange
regulations.

Proceeds of the financing are for general working capital purposes.

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

40,842,889 shares outstanding
(post - closing of the above said transaction)

-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.