Star Navigation Systems Group Ltd.

Star Navigation Systems Group Ltd.

March 21, 2005 19:21 ET

Star Navigation Wins $9.0 US Million Order From SpiceJet-India and Star To Launch World's First Wireless WiFi System On A Commercial Jetliner In-Flight


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STAR NAVIGATION SYSTEMS GROUP LTD.

TSX VENTURE SYMBOL: SNA

MARCH 21, 2005 - 19:21 ET

Star Navigation Wins $9.0 US Million Order From
SpiceJet-India and Star To Launch World's First
Wireless WiFi System On A Commercial Jetliner In-Flight

TORONTO, ONTARIO--(CCNMatthews - March 21, 2005) - Star Navigation
Systems Group Ltd. 'Star Navigation' (TSX VENTURE:SNA) is pleased to
announce that SpiceJet of India has ordered its flagship product, the
In-flight Safety Monitoring System (ISMS™) for SpiceJet's entire
fleet of aircraft. Based on SpiceJet's expansion plans, the contract for
Star is worth up to $9.0 US Million over 10 years.

Royal Airways launched its new brand 'SpiceJet' earlier this year.
SpiceJet has placed orders for up to 20 Boeing next generation 737-800
airplanes valued at over $1.2 Billion. Royal's management plans on
further doubling the SpiceJet fleet size with additional aircraft being
added over the next four years. The planned expansion will position
SpiceJet as a dominant airline on the Asian sub-continent.

SpiceJet will take delivery of the first three units of the In-flight
Safety Monitoring System starting in April 2005. The systems will be
installed on the Next-Generation Boeing 737-800's at the Gulf Aircraft
Maintenance Company (GAMCO). GAMCO is the largest aircraft maintenance
facility in the Middle East, and is Star Navigation's exclusive partner
in the region.

The Director General of Civil Aviation in India (DGCA) has endorsed and
certified that Star Navigation's In-flight Safety Monitoring System
achieves and exceeds the current mandatory regulations for aircraft data
monitoring and analysis and is approved for installation in the Indian
aviation environment. Mr. Roger Page, Executive Vice-President of
SpiceJet concurred with the progressive thinking of the DGCA in its
decision to install Star's ISMSTM on SpiceJet's entire fleet.

Star Navigation is currently in earnest discussions with all the Indian
airline operators. This clear endorsement from SpiceJet has affirmed
Star's position as a leading provider of flight safety and fleet
management systems.

Introduction of Wireless Passenger Telephone System

With the installation of the In-flight Safety Monitoring System, Star
Navigation is also pleased to announce that it will also introduce an
on-board wireless telephone system for all Spicejet passengers. Star
Navigation has also agreed to launch the world's first WiFi system
on-board a SpiceJet aircraft, allowing the aircraft to communicate with
the airline's corporate LAN, and enabling high speed data downloads and
uploads. Star Navigation will be the first company in the aviation
industry to have such a system certified for use on a commercial
aircraft.

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

(pre - 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.