News Release   July 12 2005 OSI releases guidance for fiscal 2005 of up to $19 million, significantly exceeding 2004 revenues Vancouver, Canada -- Offshore Systems International Ltd. (TSX: OSI/ OTCBB: OFSYF) today announced that projected revenues for fiscal 2005 are in the range of CDN$16 million to CDN$19 million. This exceeds the CDN$13.5 million the company reported in fiscal 2004. “We’ve built a solid and growing business,” said John Jacobson, President and CEO. “Looking at our results over the previous five years, we’ve had a steadily growing top line. We’re pleased that we’ve reached a scale of operations where we can initiate guidance for our annual revenue expectations. The company’s quarterly results can vary substantially, even when year-over-year results have had a more clear and positive trend. This guidance is based on the business as we know it today, with Mapcon Mapping results included but without the effect of any future acquisitions. “This year we expect to continue our upward trend in revenue growth. Our strategy is to build the company through acquisitions and strong development of our existing business – and I expect to see results in both these areas this year. I believe we are in an excellent position to reap the benefits of the very attractive market opportunities before us.” This guidance reflects OSI’s current business indicators and expectations. Projected revenues are based on management’s current beliefs and are subject to change. OSI’s actual results could differ materially. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 relating to OSI’s revenue expectations for fiscal 2005. The terms “expected”, “expecting”, “planning”, and similar terms and phrases are intended to identify these forward looking statements. Forward-looking statements are based on estimates and assumptions made by OSI in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors OSI deems are appropriate in the circumstances. Many factors could cause OSI’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks relating to OSI’s intellectual property rights; OSI’s ability to enhance current products and develop new products; OSI’s reliance on teaming partnerships and strategic relationships; intense competition; long sales and implementation cycles; and dependence on a few international government contracts. These risk factors and others relating to OSI are discussed in greater detail in the Risks and Uncertainties section of OSI’s Management’s Discussion and Analysis of Financial Condition and Results of Operations in OSI’s Annual Report to shareholders and Form 20-F Annual Report. Copies of these filings are available at www.sedar.com and www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on OSI’s forward-looking statements. OSI has no intention and undertakes no obligation to update or revise any forward-looking statements, as a result of new information, future events, or otherwise. 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.   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