News Release   March 17 2004 OSI announces successful completion of COP-IDS integration and sea trials with Terma A/S Vancouver, Canada -- Offshore Systems International Ltd. (OSI) (TSX: OSI / OTCBB: OFSYF) announced today the Naval and Ground Systems Division of Terma A/S, a leading systems integrator in military command and control applications, has integrated OSI's COP-IDS software into their next generation of naval command and control systems. This system has been delivered to the Royal Danish Navy and successfully concluded sea trials. "Successful field application and testing is a critical milestone for any new technology, and this strong endorsement will help further establish OSI in the command and control market," said John Jacobson, Chief Executive Officer of OSI. "It is exciting to see how our vision for bringing electronic geography to these applications is resonating with end users like the Royal Danish Navy, and with strong industry players like Terma." Mr. Thorkil Damgaard Jensen, Project Manager of Terma A/S Naval & Ground Systems said, “We have integrated the COP-IDS™ product into our new generation of command and control systems, and delivered that to the Royal Danish Navy after a successful sea trial period in November and December 2003. By using the COP-IDS™ product and its unique mapping features, we have delivered an attractive solution with greatly improved situation awareness. The ability of COP-IDS™ to handle multiple data formats, its compliance with appropriate standards, and its well defined API made it easy to integrate with our system." About COP-IDS™ and API COP-IDS (Common Operational Picture - Image Display Server) is a client-server application that allows customers to rapidly and cost effectively integrate OSI's mapping and imagery display technology into command and control systems. COP-IDS™ combines data from a variety of sources - such as land maps, nautical charts, satellite imagery and special military information - into a single, fused display. API (Application Program Interface) is a set of system calls or routines for application programs to access services from operating systems or other programs. An API allows your program to work with other programs, possibly on other computers. API is fundamental to client-server computing. About Offshore Systems International Ltd. Offshore Systems International Ltd. (OSI) is a leader in electronic geography. The company’s core strengths lie in the ability to produce, manage and display many forms of geographic data. The company provides display systems and data for several defense, government and commercial customers. OSI conducts its operations through three business units: OSI Geomatics (data production and distribution), OSI Navigation Systems, and OSI 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 the OTC Bulletin Board (OTCBB: OFSYF). For more information, please visit www.osil.com. About Terma A/S As the leading Danish defence high technology company, Terma provides products and systems for a number of military applications including S/X-band radars and radar systems, naval command and control systems, air defense systems, and airborne electronic warfare systems. Terma, headquartered in Lystrup, Denmark, employs approximately 1,000 people and had 2003 revenue of approximately US$160 million. Additional information about Terma is available at www.terma.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-looking 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, and 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