Offshore Systems International Joins Negotiations with the Royal Australian Navy.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 21, 2003

Offshore Systems International Ltd. (OTCBB:OFSYF)(TSX:OSI), a geographic situational awareness systems and data company strong in naval navigation, announced today that its wholly-owned subsidiary, Offshore Systems Ltd. (OSL), has joined negotiations with the Royal Australian Navy. OSL, together with its industrial team-mates Nautronix Ltd. of Fremantle, Australia, and Scientific Management Associates of Lane Cove NSW, Australia, has been selected as the "Preferred Tenderer" by the Royal Australian Navy for its SEA1430 Phase 2A fleet-wide electronic chart navigation systems procurement. Selection as Preferred Tenderer is a key step in the procurement process for the Royal Australian Navy, and it will be followed by further technical evaluations and by negotiations to develop a final contract document.

"Winning the competitive tender process in Australia is a tremendous milestone for OSI because it validates our product marketing strategies in competition with a very strong field of international competitors. The Royal Australian Navy specification for military electronic chart navigation products was one of the most demanding in the world when it was released to qualified bidders in 2002," said John Jacobson, OSI's President and CEO. "Our extensive experience in the naval navigation field gave us robust field-tested functionality that was instrumental in this achievement. The Australian win goes a long way in solidifying OSI as the electronic chart system supplier of choice in the international military community."

As part of the three-company team, OSI will provide the Royal Australian Navy's fleet with its internationally recognized and world leading electronic navigation systems through the Company's flagship product ECPINS(R). The primary objective of the contract is to improve navigation safety and operational performance by replacing paper charts with Electronic Chart Display and Information System technology. The system is a powerful decision making tool that supports mission completion. It combines information from ship sensors, satellite and other position fixing sources, and sophisticated electronic chart databases on one centralised system.

About Offshore Systems International Ltd.

Offshore Systems International Ltd. (OSI) provides precise electronic display systems and geo-spatial data for geographic situational awareness. Founded in 1977, OSI maintains a position of technological leadership in its field, a record appreciated by military, government, and commercial customers around the world. OSI conducts its operations through two business units: Offshore Systems Ltd. provides systems for the dynamic display of geo-spatial data for mission-critical operations such as fleet navigation; and OSI Geomatics which provides analysis, production, and distribution of geo-spatial data for electronic display. OSI is listed on the Toronto Stock Exchange (TSX: OSI) and in the United States of America on the Over the Counter Bulletin Board (OTCBB: OFSYF). For more information, visit www.osl.com.

Forward-Looking Statements

This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws including Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, OSI's analysis of opportunities in the acquisition and development of various project interests and other matters. These statements are made under the 'safe harbour' provisions of the Private Securities Litigation Reform Act of 1995 and, as such, involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Although Offshore Systems International believes the expectations reflected in such forward-look statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, uncertainties associated with contract negotiations, industry supply.

Offshore Systems International Ltd. 107 - 930 West 1st Street, North Vancouver, BC, Canada, V7P 3N4, telephone: [phone], fax: [phone]. ECPINS and COP-IDS are trademarks of Offshore Systems Limited. All other trade names mentioned are trademarks and/or registered trademarks of their respective owners.

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    CONTACT: Offshore Systems International Ltd.
             Andy Hay, 888-880-9797 or 604-986-4806
             [e-mail]
             www.osl.com
             or
             The Equicom Group Inc.
             Jay Hussey, 416-815-0700 ext. 225
             [e-mail]

    KEYWORD: AUSTRALIA INTERNATIONAL CANADA ASIA PACIFIC
    INDUSTRY KEYWORD: TRANSPORTATION SOFTWARE GOVERNMENT
AEROSPACE/DEFENSE MARKETING AGREEMENTS
    SOURCE: Offshore Systems International Ltd.