OSI Geospatial Awarded U.S. Department of Defense Contract Valued at US$3.8 Million

location based services


VANCOUVER, BRITISH COLUMBIA-- Sept. 27, 2006 - OSI Geospatial Inc. (TSX:OSI)(OTCBB:OSIIF) announced today that its U.S. systems operations has been awarded a three year contract totaling approximately US$3.8 million by the U.S. Defense Threat Reduction Agency (DTRA). Under the contract terms, OSI will develop a Global Positioning System (GPS) Denied Navigation and Mapping System for the DTRA."OSI is a world leader in the development and production of Navigation and Mapping systems for international military and commercial applications. This contract will enable OSI to evolve our leading edge technology into the Hand-Held/Wearable Personal Navigation Systems market," said Ken Kirkpatrick, President and CEO of OSI Geospatial. "We are very pleased to be working with the Defense Threat Reduction Agency, a new customer for us. Along with expanding our customer base, this contract provides for further diversification of our products, supporting two of the strategic goals we established for this year."About OSI GeospatialOSI Geospatial Inc. delivers advanced systems and software to address the growing need for enhanced situational awareness in command, control, communications, and intelligence applications. By providing essential tactical and geospatial 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 Geospatial 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 (OSIIF). For additional information please visit www.osigeospatial.com.