Grey Island Systems Enters Into Transaction to Acquire NextBus Information Systems Inc.

TORONTO -- Grey Island Systems International Inc. ("Grey Island" or the "Company") (TSX Venture Exchange symbol:GIS), today announced it has entered into an agreement to acquire all of the outstanding shares of NextBus Information Systems Inc. ("NextBus"), an information technology company located in California, USA. Consideration will include the issuance of 15,456,000 common shares of Grey Island at $.50 per share. Further, Grey Island will advance $635,000 USD to NextBus to retire a number of its financial obligations, concurrent with the closing of the transaction. The acquisition will be conditional upon, among other items, the entering into a definitive agreement, satisfactory due diligence and regulatory approval.

NextBus represents a breakthrough in the way that people utilize mass transit. The approach combines Global Positioning System (GPS) data with patented predictive software to give every passenger, either on the Internet, at the passenger's bus stop, or on the telephone; arrival times for the next few vehicles. NextBus overcomes the single greatest barrier to the use of mass transit - unnecessary waiting.

"Joining Grey Island will improve our ability to serve our customers and enable NextBus to expand as a leading provider of real time passenger information in North America" said Ken Schmier CEO of NextBus.

"This transaction will further enhance the capability of both Grey Island and NextBus by cross-selling products, expanding each other's product offering and sharing in technology" said Andrew Moore CEO of Grey Island Systems.

About NextBus

NextBus Information Systems Inc. is dedicated to the public transportation industry. Its mission is to enhance the experience of using public transportation by providing high value information to both passengers and managers of public transit. Bus locations are tracked via an automatic vehicle location (AVL) system. NextBus processes the information, calculates predicted arrival times and transmits arrival time predictions to the wired and wireless Internet. NextBus empowers the individual and decreases the anxiety associated with mass transit. NextBus provides management tools that help transit agencies improve performance and reduce costs. Further information is available at www.NextBus.com.

About Grey Island

Grey Island Systems Inc., develops, markets and hosts Internet-based Automated Vehicle Location and Telematic systems for public and private organizations with customers in Canada and the United States. Interfleet (R) has been used continuously since 1998 to track EMS and other fleets. It is the first Internet-based service of its kind in North America. For more information please visit www.InterFleet.com.

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Grey Island Systems International Inc. (TSX VENTURE:GIS)