Mr. Viraf Kapadia reports

STAR NAVIGATION EXPANDS STAR-MMI DIVISION MANDATE

Star Navigation Systems Group Ltd. has been approved for Controlled Goods Program registration in Canada.

The Controlled Goods Program (CGP) is a federal government program administered by Public Works and Government Services Canada. It is a national domestic industrial security program that helps strengthen Canada's defence trade controls, and prevents proliferation of tactical and strategic technology and assets including missile technology, military equipment and related intellectual property. This is done by regulating and controlling the examination, possession and transfer of controlled goods in Canada. Anyone who conducts business in Canada, and examines, possesses or transfers controlled goods must comply with the Defence Production Act and the Controlled Goods Regulations (CGR). Registrants' work sites are regularly inspected to ensure compliance.

The STAR-MMI division is already designing, manufacturing and supporting high-performance, flat panel displays for defence aviation industries worldwide. This updated registration allows the company to address new projects internationally, to design new equipment for export, and to expand its existing repair and replacement activities while solidifying its relationships with aerospace manufacturers for defence market applications. It also applies to the company's STAR-A.D.S. system.

"While the STAR-MMI division has been in operation for just over six months, it is already proving to be both a valuable revenue generator and significant contributor to Star's capabilities and the stability of its supply chain management. The CGP registration is critical to Star's expansion, and its ability to offer all of its products and services to military markets and projects. In particular, our road map calls for the development of military applications of our STAR-A.D.S., which is raising interest in defence domains. Star is now CGR compliant and can actively pursue its plans, both in delivering STAR-MMI products and in developing STAR-A.D.S. defence versions."

We seek Safe Harbor.