Star Navigation Announces Private Placement

TORONTO, Sept. 6 /CNW/ - Star Navigation Systems Group Ltd. ("Star
Navigation") (TSX Venture: SNA), is pleased to announce, subject to TSX
Venture Exchange final acceptance, a non-brokered private placement totaling
approximately $760,000 CDN.
The private placement comprises of the issuance of 3,040,000 common
shares and an equal amount of warrants entitling the holder the right to
purchase one additional share at $0.45 for a term of one year.
Star Navigation has dramatically increased its marketing and sales
efforts in the past 45 days with notification for the $9 Million SpiceJet
contract to be accelerated, a joint marketing agreement with Russell Adams
Ltd. concluded, and a $2.5 Million contract with Club One Aviation formalized.
Also, as a result of the unfortunate Air France air accident at Pearson
International Airport last month, Star Navigation has been deluged with
inquiries from around the world, including airlines, government agencies, and
the media. Interested parties can visit the Star Navigation website,    
www.star-navigation.com, where news articles, television and radio interviews
are available for viewing.
Proceeds from the private placement are for general working capital and
to fund Star Navigation's expansion.
"Management is unwavering in its determination to capitalize on the  
world-wide opportunity that is now before us. We have proprietary technology
with a global application that is in urgent demand within the commercial
airline industry, the private business jet market, as well as aviation service
providers," reports Viraf Kapadia, Chairman and CEO.
Star Navigation is in earnest discussion with airline operators and
affiliates around the world for the sale and installation of the flagship
product, the ISMS(TM) (In-Flight Safety Monitoring System).

About Star Navigation...

Star Navigation Systems Group Ltd. (www.star-navigation.com) owns the
worldwide license to a product without peer, its proprietary, patented       
In-flight Safety Monitoring System - ISMS(TM), the first system in the world
to feature in-flight data-analysis, -monitoring and -diagnostics with a    
real-time connection between aircraft and ground. Its real-time capability of
tracking performance-trends and predicting incident-occurrence enhances
aviation safety and improves fleet management while reducing costs for the
operator.

Certain statements contained in this News Release constitute        
forward-looking statements. When used in this document, the words "may",
"would", "could", "will" and similar expressions, as they relate to Star or
its management, are intended to identify forward-looking statements. Such
statements reflect Star's current views with respect to future events and are
subject to certain risks, uncertainties and assumptions. Many factors could
cause Star's actual performance or achievements to vary from those described
herein. Should one or more of these factors or uncertainties materialize, or
should assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those described herein as intended,
planned, anticipated, believed, estimated or expected. Star does not assume
any obligation to update these forward-looking statements. The TSX Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this press release.

47,136,951 shares outstanding
%SEDAR: 00009078E