News Release   May 29 2003 Offshore Systems Wins Royal New Zealand Navy contract Company wins open international competition Vancouver, Canada -- Offshore Systems International Ltd. (OSI) (TSX:OSI, OTCBB:OFSYF) announced that its systems division, Offshore Systems Ltd., has signed a contract with the Royal New Zealand Navy. The contract, valued at over CDN$1,000,000 with all options exercised, will see Offshore's proprietary ECPINS®-M (Electronic Chart Precise Integrated Navigation System - Military) deployed across the navy's entire fleet. ECPINS-M was selected in part for its high level of compliance with the NATO Warship Electronic Chart Display and Information System standard for electronic navigation systems. Offshore had been short- listed with four other international suppliers, an event the company announced in March of this year. "Our goal is to deliver the world's leading NATO-compliant electronic navigation system," said John Jacobson, President and CEO of OSI. "This Royal New Zealand Navy contract win demonstrates our market leadership." The contract brings the number of navies to standardize on ECPINS-M to three: the Royal New Zealand Navy, the Canadian Navy, and the Royal Danish Navy. Offshore continues to pursue opportunities to supply international military customers with its warship navigation software. The company recently announced that it is also collaborating with Kelvin Hughes Limited of the UK to jointly pursue more defence contracts. About ECPINS ECPINS® (Electronic Chart Precise Integrated Navigation System) is the world's leading system for the safe navigation of ships. ECPINS meets international safety and quality standards, including ISO 9000 and the International Maritime Organization's (IMO) standards. ECPINS gives ship navigators a precise, real-time display of position and progress on electronic charts. Today, ECPINS is on active duty on ships of the Canadian, US, and Royal Danish navies and of the US and Canadian Coast Guards. ECPINS means safer ships, efficient operations, and effective missions. About Offshore Systems International Limited Offshore Systems International Ltd. (OSI) provides precise electronic display systems and geo-spatial data for situational awareness. Founded in 1977, OSI maintains a position of technological leadership in its field, a record appreciated by military, government, and commercial customers around the world. OSI conducts its operations through two business units: Offshore Systems Ltd. provides systems for the dynamic display of geo-spatial data for mission-critical operations such as fleet navigation; and OSI Geomatics which provides analysis, production, and distribution of geo-spatial data for electronic display. OSI is listed on the Toronto Stock Exchange (TSX:OSI) and in the United States of America on the Over the Counter Bulletin Board (OTCBB:OFSYF). 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