Mr. Randy Koroll reports

STAR NAVIGATION ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Star Navigation Systems Group Ltd. has arranged a non-brokered private placement in the capital of the company at a purchase price of one cent per unit. Each unit consists of one common share in the capital of the company and one warrant. Each of the warrants entitles the holder to purchase one additional common share of the company at five cents per warrant. The warrants are exercisable during the five-year period from the date of issue.

The company has agreed to pay finders' fees in the amount of 10 per cent of the gross proceeds in cash. The price was reserved with the Canadian Securities Exchange.

All securities issued in the offering and any shares issued upon exercise of warrants are subject to a four-month statutory hold period from the date of issuance. The net proceeds of the private placement will be used for working capital as well as sales and marketing efforts surrounding the STAR-A.D.S. system.

About Star Navigation Systems Group Ltd.

Star Navigation Systems Group manufactures the in-flight safety monitoring system STAR-ISMS, the heart of the STAR-A.D.S. system. The STAR-A.D.S. system has real-time capability of tracking performance trends and predicting incident occurrences, which enhances aviation safety and improves fleet management while reducing costs for the operator. Star's MMI division (military and defence) designs and manufactures high-performance, mission-critical flight deck flat panel displays for defence and commercial aviation industries worldwide.

We seek Safe Harbor.