OSI Geospatial Inc.'s plan of arrangement becomes effective

VANCOUVER, July 13, 2012 /CNW/ - OSI Geospatial Inc. ("OSI" or the "Company") is pleased to announce that the Company's previously announced going private transaction (the "Transaction") carried out by way of a plan of arrangement under the Business Corporations Act (British Columbia) (the "Transaction") became effective today.

The Transaction provides, among other things, that (i) each Class "B" Series 2 Preference Share (a "Preferred Share") held by a preferred shareholder be converted into common shares of the Company (the "Common Shares") at a conversion rate of 156.667 Common Shares per Preferred Share, which is equivalent to a value of $9.40 per Preferred Share, and (ii), all of the issued and outstanding Common Shares be consolidated on a 250,000 to 1 basis and common shareholders holding less than one post-consolidation Common Share be paid $0.060 in cash, representing a 33% premium to the pre-consolidation market price for the Common Shares, per pre-consolidation Common Share held by them.

The Common Shares of OSI were delisted from the TSX Venture Exchange on July 12, 2012. The Company is in the process of applying to the relevant securities commissions to cease to be a reporting issuer and expects to close the Transaction in late July 2012.

Further details regarding the Transaction are set out in the management information circular dated May 16, 2012, which is available under the Company's profile on SEDAR.

About OSI Geospatial Inc.

OSI Geospatial Inc. operates two distinct business units: Offshore Systems Ltd. (based in Vancouver, British Columbia), a world-leading naval fleet supplier of integrated navigation and tactical solutions; and CHI Systems, Inc. (based in Philadelphia, Pennsylvania), a leading-edge research, development, and systems integration supplier of technology solutions for defense, aerospace, health, and bioscience markets. OSI Geospatial systems and software are in use by military, government, and commercial customers around the world. The Company is publicly traded on the TSX Venture Exchange. For additional information please visit www.osigeospatial.com.

SOURCE OSI Geospatial Inc.

For further information:

Jim Girard
Chief Financial Officer and Secretary
+1 778-373-4600 +1 888 880 9797
+1 778-373-0027 (FAX)
invest@osigeospatial.com

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OSI Geospatial Inc.

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