This includes new prime land mapping contracts with Pierce County in Washington State for nearly $600,000 and Seattle, Washington for $250,000.

"Buying Mapcon was a strategic move to grow our position in the fast-growing U.S. market," said John Jacobson, President and CEO. "Winning $1.4 million in new contracts in just three months signals the strategy is working. It's also significant to note that we are winning as prime contractor. Mapcon has been an excellent fit and quite accretive to our business."

Jacobson said this spike in new revenue puts the company well ahead of plan for its land mapping and marine charting business this year. "We were forthright in 2004 that it was important for the future growth of this business to obtain an operational base in the United States. It's by far the largest single market for land mapping in the world."

The company is also seeing market demand shift from marine charting to land mapping services. "The bulk of market growth is happening on the land mapping side," said Jacobson. "One of the reasons Mapcon is an attractive partner is its location in Utah, which ranks third highest for population growth rate in the U.S. - and population is a key driver of demand."

Based on market data, OSI estimates the North American mapping market is approximately US$500 million annually. "Our goal with Mapcon is to build our prime contract business in the U.S.," said Jacobson. "We intend to steadily continue this upward trend in revenue growth."

Mapcon Mapping, with headquarters in Salt Lake City, is a fully-owned company of OSI.

About Offshore Systems International Ltd.:

Offshore Systems International Ltd. (OSI) makes computer-based geospatial intelligence software, systems and data products mainly for large government and civilian customers. The company has three business units: OSI Navigation Systems (moving map display systems and software for naval surface ships and submarines); OSI Applications (network-based map and target display software and services for national defence) and Mapcon Mapping (digital map data production services for civilian customers). OSI's common shares are listed for trading on the Toronto Stock Exchange (TSX: OSI) and the OTC Bulletin Board (OTCBB: OFSYF). Visit OSI's website at www.osil.com for more information and the latest Company updates.

Forward-Looking Statements:

This news release contains items that 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. 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. Offshore Systems International can give no assurances that its representations will be achieved or that it will update them at any time in the future.

For further information: Deborah Somerville, Director, Corporate Communications, Phone: (604) 904-4627, 1-888-880-9797