News Release   October 10 2001  Offshore Systems International Reports Fiscal Third-Quarter & Nine-Month Results: Seventh Straight Profitable Quarter  Increasing New-Business Development  Strong Order Backlog for Coming Quarters  Vancouver, Canada - October 10, 2001 - Offshore Systems International Ltd. (TSE: OSI), a marine electronic navigation company with a strong defense niche, announced today operating results for its fiscal third quarter and nine months ended August 31, 2001 - which marked the company's seventh consecutive profitable quarter. For the third quarter, revenue increased 24% to $1,802,300 from $1,414,620 in the same period last year. Net earnings amounted to $120,512, equal to $0.005 per diluted share versus $157,211, or $0.007 a diluted share, in the year-ago quarter. For the nine months of fiscal 2001, revenue rose 12% to $5,323,630 from $4,762,217 in the like period last year. Net earnings amounted to $144,100, equal to $0.006 per diluted share, versus $184,995, or $0.008 a diluted share, last year. John Jacobson, President and Chief Executive Officer of Offshore Systems, said: "Earnings this year have been achieved even though we have had to take write-downs on older technologies in inventory as well as having higher sales and marketing expenses because of an increased level of business-development activity. However, the new-business activities will lead to increasing revenue in coming quarters. In fact, at the end of this year's fiscal third quarter, our backlog of orders reached $4.9 million. Mr. Jacobson noted, "The majority of the increased revenue in the third quarter was derived from new orders for Offshore's proprietary ECPINS® line of electronic chart navigation systems for military ships." This included a $5 million Prime Contract signed in August 2001 with the Royal Danish Navy to provide fleet-wide deployment of ECPINS® -- which represents Offshore's first major NATO contract outside of Canada. This August, too, Offshore received ISO9001 certification for all its electronic navigation charting systems and services. In the third quarter, the company also received a new order from the U.S. Coast Guard, a long-time customer of Offshore. "Recently, the United States Navy has ordered for field trials two ECPINS®. We expect our business with the U.S. Navy, as well as with navies around the world, to grow materially in the future," added Mr. Jacobson. Offshore Systems International Ltd. Founded in 1977, Offshore Systems designs, develops and markets the proprietary ECPINS® (Electronic Chart Precise Integrated Navigation System) line of electronic chart navigation systems for ships. ECPINS® helps to reduce the risk of navigation related incidents by giving bridge crews a precise, real-time display of their position, course and speed, against a background of fixed obstacles and other navigational hazards. The marine industry puts the highest priority on safety of operation and independent studies have shown that ECPINS® can contribute significantly to reducing the risk of navigation-related shipping incidents. For more information, visit: www.osl.com Forward-Looking Statements This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws including Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, OSI's analysis of opportunities in the acquisition and development of various project interests and other matters. These statements are made under the 'safe harbour' provisions of the Private Securities Litigation Reform Act of 1995 and, as such, involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Although Offshore Systems International believes the expectations reflected in such forward-look statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, uncertainties associated with contract negotiations, industry supply.   For more information contact: Jane Hayward Investor Relations +1 613 287 0462 or +1 888 880 9797 +1 613 287 0466 (FAX) invest@osigeospatial.com