Star Navigation Systems Group Ltd.

Star Navigation Systems Group Ltd.

March 22, 2005 08:00 ET

Star Navigation Proposed Preference Share Issuance


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STAR NAVIGATION SYSTEMS GROUP LTD.

TSX VENTURE SYMBOL: SNA

MARCH 22, 2005 - 08:00 ET

Star Navigation Proposed Preference Share Issuance

TORONTO, ONTARIO--(CCNMatthews - March 22, 2005) - Star Navigation
Systems Group Ltd. 'Star' (TSX VENTURE:SNA), is pleased to announce,
subject to TSX Venture Exchange approval, the proposed issuance of
350,000 Series "A" preference shares at $1.00 per share for total gross
proceeds of $350,000 CDN.

Subject to closing, the preference shares being issued will have a term
of 3 years, be convertible into common shares of Star, at the holder's
option, by way of a warrant, and yield a 9% interest coupon paid
quarterly.

The 350,000 Series 'A' preference share warrants entitle the holder the
right to exchange 1 preference share for 5 common shares of Star in year
one, 1 preference share in exchange for 3.33 common shares of Star in
year two and 1 preference share in exchange for 2.5 common shares of
Star in year three.

Proceeds of the preference share financing are exclusively targeted to
ensure the company continues its aggressive marketing efforts while
completing the expected Royal Airways' newly launched brand 'SpiceJet'
installation.

The preference share issuance is a result of the direct effort of Star's
advisors, Global Management Group Inc. & Blueback Capital Corp. Star has
agreed to pay the advisors each a finders fee of $15,000 and 125,000
commons shares of Star, subject to TSX Venture Exchange approval.

The company's advisors, now look 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,
the ISMS™, and to continue marketing it 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

40,842,889 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.