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OSI and Kelvin Hughes Collaborate

Maritime Activity Reports, Inc.

April 28, 2003

Offshore Systems International Ltd. (OSI) announced that its systems division, Offshore Systems Ltd. (OSL), has entered into an agreement with Kelvin Hughes Limited, part of Smith Marine Systems, to jointly pursue opportunities to supply electronic navigation systems to military customers. With an initial focus on the UK, the companies will offer navigation systems compliant to the NATO Warship Electronic Chart Display and Information System standard, referred to in the industry as "WECDIS". "We work with industry partners to expand our sales capabilities and reach new markets," said John Jacobson, President and CEO of OSI. "Working with Kelvin Hughes further reinforces our strategic position in the military market." "Working with Offshore Systems is of particular significance for Kelvin Hughes from a strategic perspective,". said Henry Schaefer, Kelvin Hughes' Naval Business Director. "This marks the beginning of a collaborative effort aimed at the wider global WECDIS market generally, and the UK market specifically."

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