Offshore Systems Proceeds with Normal Course Issuer Bid.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 14, 2003

Offshore Systems International Ltd. (OTCBB:OFSYF)(TSX:OSI), is pleased to announce that it intends to proceed with a normal course issuer bid whereby it will purchase its own common shares out of the market through the facilities of the TSX. The Company currently has 26,043,243 common shares issued and outstanding. The board of directors of the Company has authorized the repurchase of up to 1,300,000 common shares, representing approximately 5% of the issued and outstanding common shares of the Company. All shares repurchased by the Company will be cancelled. The bid will commence on January 16, 2003 and terminate on January 15, 2004. The board is of the view that the Company's shares are currently undervalued in the market and that a repurchase of the shares at current prices represents a sound investment opportunity and will assist in having the true value of the Company's shares reflected in the market.

About Offshore Systems International Limited

Founded in 1977, Offshore Systems designs, develops and markets the proprietary ECPINS(R) line of electronic chart navigation systems for ships. ECPINS(R) helps to reduce the risk of navigation-related incidents 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. Offshore Systems has developed a strong market position in military navigation, and has ECPINS(R) systems deployed with the Canadian and United States Coast Guards, the Canadian Navy, the Royal Danish Navy and the United States Navy. OSI Geomatics Ltd., a wholly- owned subsidiary, produces and markets both land and nautical mapping products for the military, governmental and commercial marketplace in North America.

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, Offshore'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.