PELORUS NAVIGATION SYSTEMS ANNOUNCE FIRST CANADIAN SALE OF GPS PRECISION LANDING SYSTEM.

CALGARY, ALBERTA--(BUSINESS WIRE)--MARCH 28, 1995--PELORUS NAVIGATION SYS (Alberta Stock Exchange:PN) Pelorus Navigation Systems Inc. has signed a $1.5 million Agreement with the Government of Saskatchewan and the Government of Canada to supply and install a Pelorus/Honeywell Local Area Differential Global Positioning System (LDGPS) to five airports in the province. The project, partially funded under the Canada-Saskatchewan Infrastructure Works Program, will improve the safety and reliability of air operations and will create knowledge based employment in Saskatchewan. The system will be manufactured by Pelorus at the Company's plant to be established at Saskatoon. The Saskatoon facility will support Pelorus' sales of LDGPS worldwide and is complimentary to the Company's corporate, engineering and production activity in Calgary.

"We're excited about the agreement on two counts," says Ed Fitzhenry, President of Pelorus, "Saskatchewan is an excellent venue for high productivity manufacturing and the project will showcase our technology to customers worldwide. We've got it all here", says Fitzhenry, "excellent research facilities, world class educational institutions, efficient telecommunications and transportation networks, an educated, vigorous work force and Government that supports export driven business."

Earlier this year, Pelorus and Honeywell Inc. signed a teaming agreement to develop, manufacture, market, install and maintain the Pelorus/Honeywell LDGPS. Honeywell Vice President, Keith Aakre says "we share Pelorus' enthusiasm for the Saskatchewan project and look forward to cooperating with the province, Transport Canada and the regional aircraft operators on this important milestone in aviation history." The project is the world's first application of DGPS at a network of airports to support commercial air carrier operations.

Commenting on the project, Al Brydon Knibbs, Director Flight Operations, Sask Air says, "we're delighted by the Province's initiative. The Honeywell/Pelorus system provides greater reliability and an added measure of safety to air operations at regional airports in the Province."

The Pelorus/Honeywell Satellite Landing System, SLS-1000, operates with three DGPS receivers installed at precisely surveyed locations and referenced to and dispersed around a precisely surveyed point on a runway. The receivers each determine the differential corrections necessary to remove the errors in the satellite signals received due to the effects of the ionosphere, troposphere and selective availability (SA). The ground station processes the data from each DGPS receiver and after ensuring the integrity, transmits the correction message once per second up to the airborne DGPS receiver. The airborne receiver is equipped to apply the corrections and produce navigation data that is accurate to within 1.5 meters horizontally and 2 meters vertically.

In addition to the minimum requirements for compliance, the Pelorus/Honeywell system also transmits the precision approach Path Points for all approaches in the local area.

Work on the project already has started. Pelorus has awarded a contract to SED Systems of Saskatoon to assist with the product development. Pelorus will scale up its production facility in Saskatoon in early 1996 to coincide with global marketing activity and certification of the Saskatchewan installations by Transport Canada. Pelorus expects to create six high tech jobs initially with expansion planned as the global market increases. The estimated requirement for LDGPS could run into the $8 billion range over the next 5 to 10 years.

CONTACT: Mrs. Shirley Fitzhenry

Vice President

Pelorus Navigation Systems Inc.

575 Palmer Road

Calgary, Alberta

[phone]

[phone] (FAX)