OSI Geospatial Inc. News Release
 
December 02 2005

OSI awarded C$500,000 contract to deliver advance warship navigation systems to the Royal Australian Navy

Vancouver, Canada
— Offshore Systems International Ltd. (TSX: OSI; OTCBB: OFSYF) has been awarded a C$500,000 contract to supply the Royal Australian Navy with delivery of the most advanced electronic warship navigation systems available. This is a follow-on order to the C$8 million subcontract OSI signed with its teaming partner, Nautronix, in March 2004 when OSI became the fleet supplier to the Royal Australian Navy for electronic chart navigation systems.

"This contract calls for immediate delivery and secures nearly half of the C$1.2 million contract prematurely announced on November 15, 2005,” stated Ken Kirkpatrick, President and CEO of OSI. “The negotiations for the balance of the contract are ongoing, and we are confident that it will come to closure.”

Mr. Kirkpatrick continued, “Our partnership with the Royal Australian Navy and Nautronix has never been stronger. The Navy has, by choosing the OSI system, selected one of the world’s most advanced military electronic chart display and information systems. We look forward to many future opportunities to build on our working relationship with both the Royal Australian Navy and Nautronix.”

OSI’s world-leading electronic chart navigation systems deliver unsurpassed performance meeting the needs of the military market by integrating real-time electronic chart display with other critical navigational information systems. The international deployment of OSI Navigation Systems ECPINS®-M, the most advanced ECPINS® available today with full military functionality, by the Royal Australian Navy and others means not only safer ships and more effective missions but also full interoperability between allied fleets.

About OSI
Offshore Systems International Ltd. (OSI) makes geographic-intelligence software, systems and data products mainly for large government and civilian customers. The company operates 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 homeland security) and Mapcon Mapping (digital land mapping and marine charting services for civilian customers). OSI’s common shares are listed on the Toronto Stock Exchange (TSX: OSI) and the OTC Bulletin Board (OTCBB: OFSYF). Visit OSI’s website at www.osil.com for the latest company updates.

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 actual results 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