Offshore Successful in U.S. Navy Fleet Battle Experiment.

Business Editors

NORTH VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 18, 2000

John Jacobson, President and CEO of Offshore Systems International Ltd. (Offshore) (TSE:OSI.), the world leader in electronic charts and positioning systems for the maritime industry, is pleased to announce Offshore's successful participation in the U.S. Navy's annual Fleet Battle Experiment.

Fleet Battle Experiments are annual Naval exercises to evaluate cutting edge technology in an operational setting. As part of this year's Fleet Battle Experiment, the U.S. Naval Oceanographic Office (NAVOCEANO) assessed rapid production, deployment and use of new types of specialized military mission-specific navigation data.

In late August 2000, the Second Fleet and Naval Warfare Development Command simulated an amphibious assault using assets off the Atlantic Coast of the U.S. and in the Gulf of Mexico. NAVOCEANO's objective was to provide the US Navy's ships with accurate and timely hydrographic data to supplement the normal navigation charts of the area. To provide this data, NAVOCEANO resurveyed the entire operation area, gathering data on mine-like objects, bottom sedimentation and high-resolution depth soundings. Using sophisticated computer modeling techniques, NAVOCEANO also developed high-resolution hourly tidal, sea state and water temperature data for the region of interest.

These new data sets are called "Additional Military Layers" ("AML") in Electronic Chart systems. Since getting accurate data into the field quickly was NAVOCEANO's goal, they invited a number of ECDIS suppliers to provide systems. Traditional paper methods require months of preparation and printing followed by coordinated distribution to the ships. By using Electronic Chart systems for display, NAVOCEANO hoped to cut this time down to a few weeks. "We were delighted to be invited to participate in the Fleet Battle Experiment, and we committed ourselves to NAVOCEANO's mission of rapid delivery and display of AML's," said Mr. Jacobson. "Our ECPINS-M military electronic chart product turned in a flawless performance for NAVOCEANO, and for their audience, the Navy's operational commanders."

Commander Richard Kren, the Director of the Warfighting Support Center of the Naval Oceanographic Office said "The responsiveness of Offshore's people and the capability of ECPINS-M were instrumental in successfully displaying NAVOCEANO's AML products."

Jacobson went on to say: "The US Navy's Chief of Naval Operations has ordered all U.S. Navy ships make the transition to electronic chart navigation before 2008, and there are a number of programs in place to ensure that this directive is carried out. ECPINS-M meets many of the Navy's specialized requirements, and is available today. Offshore's recent validation by NIMA followed by our success in the Fleet Battle Experiment has sparked the Navy's interest in ECPINS-M."

Offshore designs, develops and markets the ECPINS(R) line of electronic chart navigation systems for vessels. Offshore has more than a decade of experience providing precise electronic chart systems for Navy, Coast Guard, passenger ships and other commercial vessels. This gives the company a unique capability to provide ECPINS(R) systems with specialized functions that support mission objectives in inherently high-risk situations where precision, performance, and reliability are paramount.

Every year, around the world, thousands of lives are lost and billions of dollars of environmental and property damage result when vessels sink or run aground. Independent studies have proven that navigation problems contribute to more than half of these incidents. ECPINS(R) helps by giving bridge crews a precise, real-time display of their position, course and speed, against a background of fixed obstacles and other navigational hazards, greatly reducing the risk of navigation related incidents.

On Behalf of the Board of Directors of OFFSHORE SYSTEMS INTERNATIONAL LTD.

Signed "John A. Jacobson"

John A. Jacobson President & Chief Executive Officer

Information Concerning Forward-looking Statements

Statements in this News Release, to the extent not based on historical events, constitute forward-looking statements. Forward-looking statements include, without limitation, statements evaluating market and general economic conditions in the preceding sections, and statements regarding future-oriented costs and expenditures. Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date thereof. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties with respect to the company include the effects of general economic conditions, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements.