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OSI Awarded C$2.0 million Contract by L-3 Communications Marine Systems

OSI Awarded C$2.0 million Contract by L-3 Communications Marine Systems

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 05/10/06 -- Offshore Systems International Ltd. (TSX:OSI)(OTCBB: OFSYF) (OSI) announced today it has been awarded by L-3 Communications Marine Systems a contract valued at approximately C$2.0 million (US$1.8 million) for the development and integration of its Common Operational Picture product for a U.S. Navy program.

"With today's award, we achieve an important milestone in the company's history and deliver on a key strategic goal for 2006 - a significant U.S. Navy contract," said Ken Kirkpatrick, president and CEO of OSI. "This development demonstrates our ability to gain meaningful access to the U.S. defense market, which was a key factor in our two U.S.-based acquisitions done last year. We believe today's award opens the door to many future opportunities with the U.S. Navy."

Further details about this contract will be disclosed following the receipt of the required customer approvals.

Based in Virginia, L-3 Communications Marine Systems designs, manufactures, and integrates marine platform control systems and training solutions for U.S. naval customers.

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 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 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.

Contacts:
Offshore Systems International Ltd.
Tracy Rawa
Manager, Investor Relations
(604) 904-4627 or 1-888-880-9797
(604) 987-2555 (FAX)
[email protected]
www.osil.com

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