News Release   Aug 25 2004 OSI announces contract options exercised by New Zealand navy Vancouver, Canada — Offshore Systems International Ltd (OSI) (TSX: OSI / OTCBB: OFSYF) announced today that the Royal New Zealand Navy has exercised contract options to deploy the latest version of ECPINS® across its entire naval fleet. The value of the options exercised is $947,000. “We are very pleased that the Royal New Zealand Navy has decided to exercise their options, which will make ECPINS® the standard electronic navigation system on all Royal New Zealand Navy ships,” said John Jacobson, President and CEO of OSI. “This is another vote of confidence in the quality and effectiveness of OSI’s technology and further solidifies our position as the dominant supplier of electronic navigation systems to NATO and NATO allied navies.” The options were part of the original agreement, signed in April 2003, under which OSI provided training systems and support services to the navy. The option portion allowed for the purchase and installation of ECPINS® systems on a fleet basis. The agreement calls for delivery to be completed by the end of August 2004 with installation over the following 12 to 18 months. 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 defence, 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. 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