Mr. Randy Koroll reports

STAR NAVIGATION ANNOUNCES COMPLETION OF SHARES FOR DEBT TRANSACTION

Star Navigation Systems Group Ltd. has closed a share-for-debt transaction. The transaction resulted in the issuance of 121.57 million units in the capital of the company at a purchase price of 0.5 cent per unit for a total reduction of debt of $607,850. Each unit consists of one common share in the capital of the company and one warrant. Each of the warrants acquired entitles the holder to purchase one additional common share of the company at five cents per warrant exercised. The warrants are exercisable during the five-year period from the date of issue.

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 for further development of the operations, sales and marketing efforts surrounding the Star-A.D.S. system.

About Star Navigation Systems Group Ltd.

Star Navigation 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 that 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.