VANCOUVER, CANADA June 16, 2005 - Offshore Systems International Ltd. announced today that it is partnering with Microsoft Canada Co. in the Coalition Warrior Interoperability Demonstration (CWID) now on from June 13 to June 23, 2005. This event tests new technologies as part of a global coalition response to fictional terrorist incidents in North America and war scenarios between four imaginary countries. It brings together homeland security departments, military forces and intelligence agencies to assess how well they can use and exchange information ("interoperability"). Microsoft(R) SharePoint(R) Portal Server is using OSI's Common Operational Picture product line (COP PL) as a key part of the information technology for the exercise.

The new offering from OSI acts as a powerful networked collaboration tool that provides battle commanders, civilian security and counter-terror agencies with a "virtual command room" for regular situation briefings and decision support. For the duration of the CWID exercise, the map and target display capability is provided by OSI's COP product line.

The purpose of CWID is to identify technology that can solve interoperability challenges and be fielded in 12 to 18 months. According to independent consultants Frost and Sullivan, interoperability and situational awareness are two of the top three most critical issues facing the defense and security market today. OSI's COP PL, which is designed to enable situational awareness and interoperability, will be formally assessed for its effectiveness by 14 evaluators, representing the navy, air forces, land forces, marines, special forces and intelligence analysts, at over 12 locations in Canada, the U.S., Europe, Australia and New Zealand. Based on independent research, OSI estimates US$400 million is currently spent each year on map display technology for command and control.

As part of the SharePoint portal solution, COP PL is available as a window for every participant on the CWID network. "It's like having a mini-TV screen on your computer providing a constant picture of the battle in real-time," said John Jacobson, OSI's President and CEO. "During a briefing, commanders, warfighters and intelligence analysts, regardless of location, can open COP PL and see the exact same image of what is happening in the field: where the enemy is, where the coalition forces are, what the terrain is like, battle commands - essentially multiple streams of information all on one screen. Being able to connect everyone to the entire battle picture, from anywhere, at once, supports situational awareness and the interoperability of all forces. To our knowledge, this is a unique capability for the defense and intelligence community."

For more information on CWID, please visit http://www.cwid.js.mil or http://www.osil.com.

About Offshore Systems International Ltd.:

Offshore Systems International Ltd. (OSI) is a pioneer in geospatial intelligence software and systems. The Company conducts its operations through three business units: OSI Navigation Systems (moving map display systems and software), OSI Applications (situational awareness products and services for command and control systems) and Mapcon Mapping (digital map and electronic chart data production services: land and marine). 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 http://www.osil.com for more information and the latest Company updates.

Forward-Looking Statements:

This news release contains discussion of items that may 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, with respect to achieving corporate objectives, developing additional project interests, OSI's analysis of opportunities in the acquisition and development of various project interests and other matters. 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. Although Offshore Systems International believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, uncertainties associated with contract negotiations, and industry supply.