07 March 2011

OSI Geospatial signs contract to supply New Zealand Navy with Integrated Bridge System

Ottawa, Canada - OSI Geospatial Inc. (TSX Venture: OSI) announced today that it has signed a contract valued at approximately $2 million with Siemens AG to provide an Integrated Bridge System (“IBS”) for the Royal New Zealand Navy’s ANZAC Class frigate Platform System Upgrade (“PSU”) Program. The Company will deliver two of its Integrated Navigation and Tactical Systems (“INTS”) and will work with Siemens to integrate Siemens' Integrated Platform Management System into a common multi-function workstation. The Company expects to substantially complete the project by the end of 2011.

Walter Purio, President and CEO, commented, “This is OSI Geospatial’s first project with Siemens and paves the way for a strong business relationship. The opportunity to deliver our INTS solution to a longstanding and important customer, the New Zealand Navy, deepens our industry-leading position with the navies of the world.”

INTS is a fully-scalable command and control solution. This technology is the migration of the Company’s world-class vessel navigation technology into a simple, cost-effective integrated system which enhances high-speed navigation and tactical and situational awareness capabilities in a wide range of maritime platforms.

“The market for our INTS technology presents a substantial growth opportunity for OSI Geospatial. The Company’s INTS solution offers significant operational and tactical advantages for a price similar to the commercial grade navigation solutions that are currently being offered to the patrol vessel market,” continued Mr. Purio.

OSI Geospatial’s relationship with the New Zealand Navy began in 2004 with a contract to supply the Company’s Electronic Chart Precise Integrated Navigation System – Warship (“ECPINS®-W”) technology for the entire fleet, as well as their training and shore facilities. ECPINS®-W was developed to enhance situational awareness and improve navigational safety on military vessels.

About OSI Geospatial

OSI Geospatial Inc. operates two distinct business units: Offshore Systems Ltd. (based in Vancouver, British Columbia), a world-leading naval fleet supplier of integrated navigation and tactical solutions; and CHI Systems, Inc. (based in Philadelphia, Pennsylvania), a leading-edge research, development, and systems integration supplier of technology solutions for defense, aerospace, health, and bioscience markets. OSI Geospatial systems and software are in use by military, government, and commercial customers around the world. The Company is publicly traded on the TSX Venture Exchange. For additional information please visit www.osigeospatial.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking statements and information that reflect the current view of OSI Geospatial with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and OSI Geospatial’s actual results of operations could differ materially from historical results or current expectations. Additional information on these and other potential factors that could affect OSI Geospatial’s financial results are detailed in disclosure documents filed from time to time with the applicable Canadian securities regulatory authorities.

ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. iGEN is a registered trademark of CHI Systems Inc., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and may be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice