News Release   January 27 2004 OSI signs agreement with Teekay Shipping Vancouver, Canada -- Offshore Systems International Ltd. (OSI) (TSX: OSI / OTCBB: OFSYF) announced today that it has signed a contract with Teekay Shipping Limited's (Teekay) (NYSE: TK) operational headquarters in Vancouver. OSI will supply electronic navigation systems to Teekay, owner of the world's largest independent crude oil tanker fleet. The contract calls for delivery and installation of up to 25 systems beginning in 2004. Teekay's fleet currently totals 157 vessels, including 15 newbuilds to be delivered in 2004 and 2008, and their vessels travel approximately 6 million miles per year transporting oil and other cargo. "This contract marks the return of OSI to the commercial deep-sea shipping market. ECPINS® has been the gold standard for navigation in the confined waters of the Great Lakes for more than a decade, and we're pleased that one of the world's foremost deep-water fleets has come on board." said John Jacobson, President and CEO of OSI. "We are delighted by Teekay's selection of OSI and we look forward to helping them meet their commitment to providing their clients with safe and efficient services. For our part, we see this as the beginning of the same kind of long and productive business relationship with Teekay that we enjoy with many of the world's navies." The systems to be supplied are an Electronic Chart Display and Information System (ECDIS), meeting the set of rules and performance standards developed by the International Maritime Organization that allows a civilian ship to safely navigate without paper charts. OSI's ECPINS® product (Electronic Chart Precise Integrated Navigation System) is the world's leading system for the safe navigation of ships. ECPINS® meets numerous international safety and quality standards and gives ship navigators a precise, real-time display of position and progress on electronic charts. To date, the military version of ECPINS® has been installed or is contracted to be installed on more than 250 naval vessels among customers which include the Canadian Navy, Royal Australian Navy, Royal Danish Navy, Royal Navy (U.K.), Royal New Zealand Navy, and U.S. Navy. About Offshore Systems International Limited Offshore Systems International Ltd. (OSI) was founded in 1977 and is a leader in delivering products and systems for situational awareness. The company provides display systems and geo-spatial data within mission-critical applications for several defense and commercial customers. OSI conducts its operations through three business units: Geomatics (data production and distribution), Navigation Systems, and Applications (products and services for command and control systems). OSI's common shares are listed for trading on the Toronto Stock Exchange (TSX: OSI) and OTC Bulletin Board (OTCBB: OFSYF). For more information, please visit www.osil.com. About Teekay Shipping Corporation Teekay Shipping Corporation is the leading provider of international crude oil and petroleum product transportation services, transporting more than 10 per cent of the world's sea-borne oil. With offices in 13 countries, Teekay employs more than 4,500 seagoing and shore-based staff around the world. The Company has earned a reputation for safety and excellence in providing transportation services to major oil companies, oil traders and government agencies worldwide. Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK". For more information, visit www.teekay.com.   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