NovAtel Demonstrates First North American Dual Mode GPS & Galileo Receiver to CSA.

CALGARY, Alberta -- NovAtel Inc. (NASDAQ:NGPS), a precise positioning technology company, announced today that it has successfully demonstrated the performance of a dual mode GPS and Galileo L1/E5A dual frequency prototype receiver to the Canadian Space Agency (CSA), developed under a contract awarded in September 2004. These receivers will be ready to accept signals from the first Galileo satellites scheduled to launch later this year or in early 2006. Galileo is Europe's state-of-the-art satellite navigation system, which is expected to be operational by 2010/12 with up to 30 satellites orbiting the earth.

NovAtel is developing two sets of L1/E5A engineering receivers and L1/E5A transmitters for the CSA for use with Galileo satellites. The receiver is being integrated into a modified version of NovAtel's WAAS-GII system, which also includes the Euro-3M L1/L2 dual frequency GPS receiver. The signal generator is based on a previous design built for the new U.S. Wide Area Augmentation System (WAAS) uplink system.

"This is the first operational, near-production standard, dual mode GPS and Galileo dual frequency receiver in North America," said Tony Murfin, VP Business Development at NovAtel. "We are particularly pleased to have the receiver working this early in the CSA program. We believe the technology we are creating here is unique, and will enable NovAtel to provide GPS/Galileo receiver solutions worldwide and, hopefully, in the ground infrastructure of the Galileo system itself."

Currently, NovAtel supplies GPS navigational receivers to a number of national satellite-based augmentation systems (SBAS) around the world, including the U.S. WAAS, the European EGNOS, Japanese MSAS, Chinese SNAS, and more recently the Gagan system in India. These complex receivers incorporate NovAtel's Narrow Correlator(R) tracking technology, MEDLL multipath reduction technology and Signal Quality Monitoring, and receive and process both WAAS L1/L5 GEO and GPS L1/L2/L5 signals.

About NovAtel Inc.

NovAtel designs, markets and sells high-precision GPS and other positioning components and sub-systems used in a wide variety of commercial applications principally in the aviation, geomatics (surveying and mapping), mining, precision agriculture, marine and defence industries. NovAtel's solutions combine hardware, such as receivers and antennas, with software to enable its customers to fully integrate the Company's high-precision GPS technology into their respective products and systems. The Company is focused on supplying core high precision positioning technology to original equipment manufacturers (OEMs) and system integrators who build systems for various end market applications. For more information, visit www.novatel.com.

Certain statements in this news release, including those about the Company's expected shipments to the CSA and into the Galileo system, are forward-looking statements. These forward-looking statements are not based on historical facts but rather on management's current expectations regarding NovAtel's future business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "may", "could", "will", "potential", "intend", "estimate", "should", "plan", "predict" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements, including certification and market acceptance of NovAtel's new products, impact and timing of large orders, pricing pressures in the market and other competitive factors, maintaining technological leadership, and other factors described in our Form 20-F and other SEC filings, many of which are beyond the control of NovAtel. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. These forward-looking statements are made as of the date of this news release, and NovAtel assumes no obligation to update or revise them to reflect new events or circumstances.

NOVATEL INC. (Nasdaq:NGPS)