NovAtel Inc. Receives Contract for WAAS-GUS Signal Generators.

CALGARY, Alberta -- NovAtel Inc. (NASDAQ:NGPS), a precise positioning technology company, announced today that an order for four WAAS  GUS-Type 1 Signal Generators was received from Raytheon Company in support of the US Geostationary Communications & Control Segment (GCCS) program. NovAtel completed shipments of these four GUS Signal Generators in June 2005. The value of this recent WAAS contract award is approximately US $295,000.

NovAtel has been working with the US Federal Aviation Administration (FAA) and Raytheon Company for the past two years to engineer and produce this new generation of key WAAS ground network and Ground Uplink System (GUS) equipment for Prime Contractor Lockheed Martin, under a contract from Raytheon Company first announced by NovAtel on November 5, 2003. The Signal Generator NovAtel has developed for this WAAS ground system - the WAAS GUS-Type 1 Signal Generator - is a high performance L1 and L5 signal generator designed for use in the ground uplink system of Space-Based Augmentation Systems (SBAS). The GUS Signal Generator is built with two independent L1 and L5 signal generators that precisely control the frequency and phase of L1 and L5 code and carrier.

The FAA determined that additional Geostationary Earth Orbit (GEO) satellite services for the Wide Area Augmentation System (WAAS) were needed to provide the necessary coverage, availability and improved continuity of service to the aviation user. The GCCS Program was then awarded to Lockheed Martin for additional WAAS GEO satellites, with Raytheon receiving a subcontract from Lockheed Martin for the ground based signal generator subsystem.

According to Tony Murfin, NovAtel's VP Business Development, "Following on the most recent WAAS contract announced in March for SBAS equipment in support of India's Geostationary Earth Orbit Augmented Navigation (GAGAN) program (see NovAtel press release issued March 8, 2005), this latest award continues NovAtel's push as the only supplier for WAAS-type network receiver equipment. As a Canadian company, we are also pleased to see that the new WAAS GEOs will provide much improved Northern coverage."

The FAA's WAAS uses a widely dispersed ground-monitoring network to provide integrity continuity, availability and improved accuracy to the Global Positioning System (GPS) Standard Positioning System navigation signal. The system of precisely surveyed ground reference stations positioned across the conterminous US, as well as Alaska, Hawaii, and Puerto Rico, is used to collect GPS satellite data. Using this information, WAAS generates signal error correction and integrity messages and then broadcasts these messages via Geostationary Earth Orbit (GEO) satellites to specially enabled GPS receivers onboard aircraft. WAAS will support both en-route and vertical guidance (down to a 250 foot decision height) phases of flight for users with certified WAAS avionics. WAAS is also being used extensively in other applications requiring improved accuracy without a local base station, such as agriculture, GIS (Geographic Information Systems) and for marine use.

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 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 prospects for additional WAAS related projects, 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)