OSI Geospatial was founded in 1977 (as Offshore Survey & Positioning Services Ltd.), to provide electronic positioning systems to oil companies. By the early 1980s (as Offshore Systems International Ltd.) we had pioneered the first chart display system for the marine market. Over the next 10 years, the company led the electronic charting industry, first by introducing our own line of electronic charts and then by developing electronic charting systems.

In 1991 we released our flagship electronic charting product, ECPINS®. Canada Steamship Lines was the first to standardize a fleet-wide installation of the system. Since then, other commercial customers such as Upper Lakes Group, Algoma Central Marine, U.S.S. Great Lakes Fleet Inc., American Steamship Company, Teekay Shipping, and Oglebay Norton Company have chosen ECPINS^®.

OSI Geospatial became a public company in 1990, and listed on the Toronto Stock Exchange (symbol: OSI) in 1993. We also trade on the Over the Counter Bulletin Board (symbol: OSIIF)

Midway through the 1990s, the company transitioned its focus from research and development to commercialization. At that time the third-generation ECPINS^® product had seen some success with both military and commercial customers, and the fourth generation product development was nearing completion.

In 2000, we turned our attention to military and government opportunities. In 2001 we secured our first international fleet sale to the Royal Danish Navy. Today we have equipped a number of Coast Guard and Navy fleets with new generations of ECPINS^® software, including the Canadian Coast Guard, U.S. Coast Guard, Danish Home Guard, Royal Australian Navy, British Royal Navy, Canadian Navy, Royal Danish Navy, Royal New Zealand Navy, Royal Norwegian Navy, Portuguese Navy, and the U.S. Navy.

During the past few years, the strategy of forging teaming relationships with partners in order to pursue lucrative international procurements has proven to be very successful and has positioned OSI Geospatial as a global leader in situational awareness technologies. Some of our partners include CAE Inc., BAE Systems, General Dynamics, Lockheed Martin, Kelvin Hughes, Nautronix, Northrop Grumman, Raytheon, Terma, and Tenix.

In 2002, the company entered the land-based mapping market, utilizing the skills and experience gained in the production and distribution of marine charts. In 2005, we purchased Mapcon Mapping Consultants Inc. in Salt Lake City, Utah. This acquisition built on our existing mapping business and solidly positioned us in the U.S. digital mapping market.

In February 2003, we launched a new product for the situational awareness market, targeting command and control, mission planning, navigation and mobile asset management applications. The Common Operational Picture Product Line (COP PL) has received an enthusiastic response from potential customers. In November 2005, we were contracted for its first full deployment with the Royal Danish Navy through Terma and in May 2006 we won a significant sale to the U.S. Navy through L-3 Communications Marine Systems.

In December 2005, we completed the acquisition of CHI Systems Inc., a U.S.-based research, development, and engineering company, that supplies advanced technology and services to improve the work performance, mission success, and cost effectiveness of its customers. Key customers include the U.S. Army, Navy, Air Force and Marine Corp.; Defense Advanced Research Projects Agency (DARPA); Northrop Grumman; General Dynamics; and BAE Systems.

With this acquisition we secured a significant corporate presence in the U.S. market, gained a complementary product and customer base, and expanded our critical mass to pursue much larger-scale contracts. By combining our expertise and product offering, we are capitalizing on the growing demand for real-time situational awareness in the worldwide defense and homeland security industry.

Today OSI Geospatial is a global company with offices across North America. Our long-term goal is to become the leading provider of software and systems for enabling real-time situational awareness in command, control, communications, and intelligence applications. We intend to reach this goal through the execution of our growth strategy and disciplined management of our operations.

Our growth strategy is four-fold:

1. Pursue acquisitions to gain access to key international markets and to expand our product and market focus
2. Diversify technology by leveraging our core technology into adjacent markets
3. Build strong customers relationships
4. Form valuable partnerships by using our technology dominance to gain entry into major programs

Our products and services address the critical needs of customers in three key segments: marine systems, land and air systems, and mapping. Each represents a significant market opportunity.

In June 2006, we began operating as OSI Geospatial. Currently, our divisions are operating as CHI Systems, Mapcon Mapping, and Offshore Systems.

Please see the Management's Discussion and Analysis section of our most recent quarterly and annual reports in order to review a current summary of operations, liquidity, capital resources and business risks.