TORONTO, April 27 /CNW/ - Star Navigation Systems Group Ltd. ("Star"),
(TSX.V: SNA) (Frankfurt FSE: s3o) is pleased to provide the following
corporate update to its shareholders regarding previously announced sales
contracts, memoranda of understanding and general corporate developments.
Sales of Star's patented ISMS (TM) Flagship Product
As previously announced, Star has now signed purchase contracts and
M.O.U's with several airline operators, including SpiceJet (Royal Airways),
A.R. Airways, and Bahrain Executive Air Services (Bexair). As and when
finalized, these agreements represent approximately CDN $17 million at list
prices. In addition, Star has entered into a trial installation agreement with
Pakistan International Airlines, the Pakistani national flag carrier. PIA has
a fleet strength of 49 aircraft and flies to over 87 destinations worldwide.
Sales Outlook
Star is currently engaged in discussions with airline operators
worldwide, including Canada, the Middle East, India, Pakistan, Europe and
China.
Frankfurt Stock Exchange
Star Navigations shares are listed for trading in Germany on the
Frankfurt Stock Exchange (FSE) under the symbol s3o. The FSE listing is
expected to provide Star increased investor exposure in the European
investment community. Star Navigation will begin a series of investor
presentations on May 8, 2005 that will include the cities of London, Munich,
Zurich and Geneva.
Patents
Star owns the world wide license to the patent entitled "Systems and
Method for Transportation Vehicle Monitoring or Analyzing," which has been
awarded in the United Kingdom, Hong Kong and more recently Australia.
Patents in the United States, Canada, Germany, and China are currently
pending.
New Product Development
Star is in negotiations with partners for the development of a highly
unique and innovative product using the ISMS(TM) to assist in the diagnosis
and treatment of passengers taken ill during flight. Star hopes to conclude
such discussions in the immediate future; at which time it will report any
concluded agreements to its shareholders.
Installations of Star's patented ISMS (TM) Flagship Product
The Company is pleased to report that full activation of its In-Flight
Safety Monitoring System (ISMS(TM)) on a SpiceJet Boeing 737-800 is now
imminent. Full activation of the System and transmission of data is presently
awaiting final governmental clearances and is expected before Star's year-end
(June 30, 2006). Activation of the ISMS(TM) on the second SpiceJet 737-800 is
now underway and revenue recognition will occur with respect to each
installation upon full activation. This will represent the first completed
sale of the ISMS(TM).
Star's agreement with Bexair, announced November 29, 2005, is currently
underway, with the first installation to begin shortly after receipt of the
Challenger 604 Supplemental Type Certificate ("S.T.C."), and availability of
the customer's aircraft. Discussions concerning additional product
installations are well underway.
Installation of the ISMS(TM) on a trial basis on an Etihad Airways Airbus
340 aircraft has been delayed due to temporary aircraft scheduling issues.
Star has been advised by the Indian Air Force that its "Round the World
Motor Glider Expedition 2006" has been delayed for one year in order to
coincide with the 75th anniversary of the creation of the Indian Air Force.
Star continues to look forward to providing real time ISMS(TM) data monitoring
and communications capability to one of the world's largest air forces.
The Government of India continues to recognize the cutting edge
technology that Star brings to the aviation world. In 2005, the Civil Aviation
Department of the Government of India stated "the system has novel features
for improvement in safety. Such systems are of great assistance to airlines
for providing timely information for replacement of components and avoid
delays and failures". Working with the Indian Air Force is a further extension
of the excellent working relationship the Company enjoys with the Government
of India.
The final agreement resulting from the M.O.U announced November 30, 2005
between Star and an undisclosed purchaser continues to be in negotiation and
is expected to be concluded shortly.
In June of 2004, Star successfully completed a trial installation on an
Air Sahara aircraft. During the trial period, substantial management
reorganization occurred at Air Sahara, and while discussions are ongoing, no
final decision has as yet been made by new management with respect to the
ISMS(TM) purchase. The Company is excited to work with the new management of
Air Sahara as they complete their re-organization.
"The increasing recognition of Star Navigation's In-flight Safety
Monitoring System is very rewarding. The diversity of aircraft operators and
M.R.O. centers which have signed M.O.U's, proceeded with installation and
generally shown much interest is a clear indication of its wide
applicability," said Pierre Jeanniot, Chairman of the Strategic Advisory
Committee.
Grant of Options
Subject to TSX Venture Exchange approval, the Company has granted 650,000
options to purchase common shares of Star to consultants at prices ranging
from $0.30 to $0.35 per share. Also included are 50,000 options to Sutherland
Communications Inc., Star's investor relations consultant.
Hilary Vieira, President
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. (416) 252-2889
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.
TSX.V - SNA - 54,377,949 shares outstanding.
%SEDAR: 00009078E
