News Release   February 28 2006 OSI Awarded C$450,000 Software Upgrade for Canadian Navy Vancouver, Canada — Offshore Systems International Ltd. (TSX: OSI; OTCBB: OFSYF) (OSI) today announced that it has been awarded a C$450,000 (approximately US$390,000) fleet-wide software upgrade to the Canadian Navy’s navigation system. “The Canadian Navy was one of the first to adopt our electronic chart navigation technology and then to deploy our system fleet wide. Since their initial fleet-wide procurement in 2001, business with the Canadian Navy has grown by more than 15 percent annually to over C$9.5 million today,” stated Ken Kirkpatrick, president and CEO of OSI. “We are pleased with the steady repeat business booked with our existing customers and expect continued growth in software sales through 2006.” OSI signed its first fleet-wide contract with the Canadian Navy in late 2001 for approximately C$4.8 million to upgrade all existing navigation systems with the company’s military Electronic Chart Precise Integrated Navigation System (ECPINS®-M). About OSI Offshore Systems International Ltd. (OSI) is the world’s leading developer and supplier of military navigation systems. Focused on the commercial, defense and homeland security markets, OSI delivers advanced systems and software to address the growing need for enhanced situational awareness in command, control, and intelligence applications. By providing essential tactical and geo-spatial information, the company’s systems and software help decision-makers know the precise location of mission operations across all military forces while integrating information with allies. OSI systems are in use by military, government, and commercial customers around the world. The company is publicly traded on the Toronto Stock Exchange (OSI) and the Over the Counter Bulletin Board (OFSYF). For additional information please visit www.osil.com. 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 harbor’ 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