News Release   June 29 2005 OSI awarded $3.8 million contract for additional software licences and long-term support to outfit prestigious Royal Navy fleet Vancouver, Canada -- Offshore Systems International Ltd. (TSX: OSI/ OTCBB: OFSYF) strengthened its position today as fleet supplier of software to the Royal Navy for electronic chart navigation systems (‘WECDIS’). OSI’s teaming partner and prime contractor, Lockheed Martin UK, awarded the company CDN$3.8 million for additional systems; $1.1 million in new software licences and $2.7 million for a 26-year software support contract. These new systems were options under the original $17.5 million fleet contract OSI signed in January 2004. “This order is clearly a strong endorsement of our technology by one of the world’s most prestigious navies,” said John Jacobson, President and CEO. “The Royal Navy have called the WECDIS system the ‘world’s most advanced’ and a ‘fantastic leap forward for our navigators’. To proceed to Phase 2 of the installation within 18 months of the first contract shows the strong support of the Royal Navy to the program and their serious commitment to outfitting their front-line surface and sub-surface fleet with the latest navigation technology.” In addition to providing new systems, Jacobson said OSI is continually working on software upgrades and enhancements to meet the Navy’s complex requirements. This includes pioneering, for example, development of 3-D electronic navigation for nuclear-powered submarines. Currently, 48 ships are being outfitted with OSI’s WECDIS software, including aircraft carriers, frigates, destroyers, fleet tankers, replenishment and specialist ships, and all Royal Navy submarines. The latest order for Phase 2 of the installation represents a conversion of total option backlog to total fixed backlog. “Exercising these options this soon is well ahead of our expectations,” said Jacobson. “We find this is quite typical, however. Customers bring business forward a lot earlier than originally anticipated in the initial contract.” As well as the Royal Navy, OSI is fleet supplier to the navies of Australia, Canada, Denmark, Portugal and New Zealand. OSI’s electronic chart navigation product, available as a complete system or software, is also the preferred choice for the US Coast Guard, Canadian Coast Guard and Teekay Shipping. About Offshore Systems International Limited Offshore Systems International Ltd. (OSI) makes computer-based geospatial intelligence software, systems and data products mainly for large government and civilian customers. The company has three business units: OSI Navigation Systems (moving map display systems and software for naval surface ships and submarines); OSI Applications (network-based map and target display software and services for national defence) and Mapcon Mapping (digital map data production services for civilian customers). OSI’s common shares are listed for trading on the Toronto Stock Exchange (TSX: OSI) and the OTC Bulletin Board (OTCBB: OFSYF). Visit OSI’s website at www.osil.com for more information and the latest company updates. Non-GAAP Definitions Total backlog, firm backlog, and option backlog are non-GAAP measures that do not have a standardized meaning and are likely not comparable to similar measures presented by other issuers. These measures also do not have a comparable GAAP measure. Total backlog is the total of the firm and option backlogs. Firm backlog consists of firm, fixed, signed orders issued to the company and executable by the company subsequent to the balance sheet date. Option backlog consists of unexercised contract options at the balance sheet date and indefinite-quantity contracts executable by the company subsequent to the balance sheet date. Should our customers elect to exercise contract options or place orders against indefinite-quantity contracts, the option backlog converts to firm backlog. Forward-Looking Statements This news release contains items that 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. 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 actualresults to be materially different from the results implied herein. Offshore Systems International can give no assurances that its representations will be achieved or that it will update them at any time in the future.   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