Grey Island receives GPS EQUIPMENT order for 2500 units

    TORONTO, May 29 /CNW Telbec/ - Grey Island Systems (TSX.V: GIS) and
wholly owned subsidiary InterFleet Inc., a leading provider of automated
vehicle location and predictive arrival systems for government clients, is
pleased to announce the receipt of purchase orders for 2500 Interfleet dead
reckoning GPS MDU's (mobile data units) for deployment in a large
North American municipal police service. The total value of the orders is
approximately US$1.8 M.
    The equipment is expected to be delivered in its entirety during the
company's third fiscal quarter (ending June) and may be the first of many
follow-on orders for both equipment and software services.
    Grey Islands' dead reckoning equipment is recognized as an industry
leader for high precision location information in North America's most
difficult urban canyon environments including New York City, City of Toronto
and the City of San Francisco.
    "While the company has been active in the government sector of GPS
equipment and software services for the past 10 years" states Andrew Moore,
CEO Grey Island "The adoption rate has only recently accelerated. Our
experience and ability to deliver large scale projects will continue to
position the company to take full advantage of emerging industry
opportunities."

    Forward Looking Statements:

    This news release contains forward-looking information based on
management's best estimates and the current operating environment. These
forward-looking statements are related to, but not limited to, Grey Island's
operations, anticipated financial performance, business prospects and
strategies. Such forward-looking statements are subject to a number of known
and unknown risks, uncertainties and other factors which could cause actual
results or events to differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things, business risks, changes in market and competition, technological and
competitive developments and potential downturns in economic conditions
generally. Therefore, there can be no assurance that the expectations of the
management of Grey Island will prove to be correct.

    About Grey Island Systems:

    Grey Island Systems International Inc. (TSX-V: GIS), through its
subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in
New York, New York and Grey Island Systems, Inc in Toronto, Canada, is a
technology leader providing custom real-time GPS/AVL, security and telematics
solutions as well as real-time passenger information systems to government and
related fleets. To find out more about our products and services, visit our
websites at www.interfleet.com or www.nextbus.com.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

For further information: Grey Island Systems Inc.: Owen Moore, (416)
348-9991, [phone] (FAX), [e-mail];
www.interfleet.com; www.nextbus.com; Renmark Financial Communications Inc.:
John Boidman, [e-mail]; Maurice Dagenais,
[e-mail], [phone], Fax: [phone];
www.renmarkfinancial.com