Hemisphere GPS Announces $17.5M Bought Deal Financing



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    CALGARY, Dec. 12 /CNW/ - (TSX: HEM) Hemisphere GPS Inc., a leading
designer and manufacturer of advanced GPS products has entered into an
agreement with a syndicate of underwriters led by Canaccord Adams for a
"bought-deal", underwritten private placement financing of special warrants
for gross proceeds of $17,500,140 ("Private Placement").
    Pursuant to the Private Placement, Hemisphere GPS will issue 5,555,600
Special Warrants at a price of $3.15 per Special Warrant. Each Special Warrant
will entitle the holder to receive, without payment of further consideration,
one common share in the capital of Hemisphere GPS. The offering may include
the sale of up to $2.5 million of common shares of Hemisphere GPS to be issued
to shareholders of BEELINE Technologies Pty Ltd. (the "Beeline Shareholders")
in connection with the securities purchase agreement announced by Hemisphere
GPS on December 10, 2007 and pursuant to Beeline Shareholders existing
participation rights.
    The Special Warrants will be automatically exercised for common shares on
the earlier of: (i) the business day after the date on which a receipt has
been issued by applicable Canadian securities regulatory authorities for a
final prospectus qualifying the distribution of the common shares issuable
upon exercise of the Special Warrants (the "Qualification Date"); and (ii) 120
days following the closing date.
    Closing of the Private Placement is subject to a number of conditions,
including receipt of approval of the Toronto Stock Exchange. The net proceeds
from the Private Placement will be utilized to fund working capital.
Hemisphere GPS expects that the offering will close on or about December 31,
2007.

    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The common
shares have not been and will not be registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirement.

    About Hemisphere GPS

    Hemisphere GPS designs and manufactures innovative, cost-effective GPS
products for positioning, guidance, and machine control applications in
agriculture, marine and other markets. The Company holds numerous patents and
other intellectual property and owns leading brand names, including Outback
Guidance(R), one of the leading brands in precision GPS for ground
agriculture. The Company is headquartered in Calgary, Alberta, with major
product development, sales, and marketing facilities in Arizona, Kansas, and
Texas. For more information about Hemisphere GPS, please go to
www.hemispheregps.com.

    The above disclosure contains certain forward-looking statements that
involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond Hemisphere GPS' control, including: the impact of
general economic conditions, industry conditions, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to the announced transactions and the
final valuations thereof, and obtaining required approvals of regulatory
authorities. Hemisphere GPS' actual results, performance or achievement could
differ materially from those expressed in, or implied by these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits, including the amount of proceed, that
Hemisphere GPS will derive there from.





For further information:

For further information: Steven Koles, President and Chief Executive
Officer, Hemisphere GPS, (403) 259-3311, Skoles@HemisphereGPS.com; Cameron
Olson, Chief Financial Officer, Hemisphere GPS, (403) 259-3311,
COlson@HemisphereGPS.com; Cory Pala, Investor Relations, E.vestor
Communications Inc., Phone: (416) 657-2400, E-mail: CPala@evestor.com

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