Star Navigation announces corporate update at the request of the TSX Venture Exchange



    TSX Venture Exchange Symbol: SNA

    TORONTO, March 12 /CNW/ - Star Navigation Systems Group Ltd. (TSX: SNA-V)
("Star" or the "Company") at the request of the TSX Venture Exchange provides
a Corporate Update with respect to certain previous announcements.

    Spicejet, Air Sahara, A.R. Airways
    ----------------------------------

    On January 17, 2006, Star issued a press release stating, among other
things, that agreements had been signed in 2005 aggregating $17 million. This
figure assumed US dollar denominated sales, converted to C$ at the then
prevailing rate of exchange, and included $10,600,000 for 34 Spicejet
aircraft, $3,120,000 for 10 A.R. Airways aircraft and $2,900,000 for 15 Air
Sahara aircraft. The number of aircraft and values disclosed were based upon
projected fleet buildout conditional upon the initial trials being successful.
    All three carriers are based in India, and an Aeromobile license is
required in order to operate the Star ISMS(TM) system in Indian airspace.
Star's application has been under consideration for over two years and to
date, has not yet been granted by the Indian Government. However, the license
is the subject of current detailed discussions between Star's representatives
and the Indian Government. Star's Chairman, Viraf Kapadia, will attend the
next round of meetings in India next month. Installations were initially
completed on two Spicejet and one Air Sahara aircraft. However, the Aeromobile
license issue prevented system activation and consequently, none of these
agreements have been concluded at this time.
    Air Sahara has since been taken over by another airline. Due to the
licencing delays and new management at Air Sahara, management believes that
the terms of the previous agreement with Air Sahara will require renegotiation
at such time as the Aeromobile license is granted. Similarly, due to the
licencing delays, management believes that the terms of the previous
agreements with both Spicejet and A.R. Airways will also require renegotiation
if and when the Aeromobile license is granted.

    T.A.P / Kharkov
    ---------------

    On February 27 and 28, 2006, Star announced the signing of Memorandums of
Understanding ("MOU") with TAP Maintenance and Engineering in Portugal and
Kharkov State Aircraft Manufacturing Company in Ukraine. Due to a reallocation
of available resources to the Middle East, India and Pakistan by Star,
discussions leading to definitive agreements with these firms were suspended.

    Bexair
    ------

    Further to the Company's press releases dated November 29, 2005 and April
27, 2006, this purchase did not proceed due to problems encountered with
availability of the customers' Challenger 604 Supplemental Type Certificate
("STC") certification and contract issues with Bexair. Star intends to revisit
opportunities with Bexair when resource allocations permit.

    Indian Airforce Glider Project
    ------------------------------

    On January 12, 2006 and April 27, 2006, Star announced that it had been
selected to provide technical assistance to the Indian Airforce Round the
World Glider Expedition 2006. The Expedition was postponed by the Airforce
until 2007. Without notice to Star, the Expedition proceeded with the
assistance of other providers. This issue forms a part of current litigation
of the Company against its former president, Hilary Vieira (see press release
dated September 18, 2007).

    Air Arabia
    ----------

    Star's announcements dated November 30, 2005 and April 27, 2006, referred
to a MOU entered into between Star and an "undisclosed" purchaser, Air Arabia.
The Company was unable to satisfactorily conclude those negotiations. Star's
new sales team will revisit this customer as resource allocations permit.

    Medical Monitoring
    ------------------

    In reference to Star's press release dated May 15, 2006 announcing a MOU
regarding a Medical Monitoring project, we advise that this has been on hold
for some time due to a corporate reorganization involving Star's partner in
the venture. However, the project has recently been reactivated and
design/development work is underway. A formal agreement is being negotiated
and further disclosure will be provided when completed.

    Etihad Airways
    --------------

    Further to Star's press release dated September 22, 2006, Star's
technical team continues to work with Etihad to overcome their internal timing
and personnel allocation issues. The required Airbus A-340 300 Series STC,
together with a full design and installation package, has been provided by
Star. Star expects that installation on an Etihad aircraft for trial
evaluation should follow in due course.

    Zain Aviation
    -------------

    Star's press release dated October 25, 2006 disclosed that it had
received a purchase order from Zain Aviation with respect to purchase of a
Satellite Telephone, Cabin Information System and ancillary services. Prior to
delivery and installation, Zain Aviation ceased operations resulting in this
purchase order not being fulfilled.

    Pakistan International Airways ("PIA")
    --------------------------------------

    As an update to the Company's press release dated May 23, 2007, the trial
evaluation of Star's In-Flight Safety Monitoring System ("ISMS(TM)") on a PIA
Airbus A-310 has been underway for some time. The testing and evaluation phase
of the trial is now complete and all system expectations were met or exceeded.
Final negotiations are underway regarding a formal agreement and PIA's
decision is expected shortly. The government of Pakistan has provided
approvals for use of Iridium's satellite system over Pakistan. STC approvals
for Airbus A-310-300 are complete for Pakistan and Star intends on pursuing
STC approvals for additional aircraft types once a formal agreement has been
executed with PIA.

    Electronic Flight Bag ("EFB")
    -----------------------------

    On September 12, 2007, Star announced an expansion of its product line
through a MOU with an industry leading EFB supplier. This project has been on
hold pending release of Star technical personnel from the PIA trial
evaluation. Preliminary integration testing with Star's ISMS(TM) has already
taken place. Star is now prepared to commence detailed work and is in the
process of coordinating personnel and timing. Star has agreed that the
identity of the EFB supplier will remain confidential for the time being. A
definitive agreement will be negotiated after further detailed discussions
have taken place.

    Aerosoft Systems Inc.
    ---------------------

    On September 19, 2007, Star entered into a MOU with Aerosoft which
provided for, among other things, evaluation of the possibility of cooperating
for the purpose of developing integrated solutions to various concerns of the
aircraft industry. As a result of very positive ongoing discussions, Star
announced the relationship on January 2, 2008. Discussions and cooperation
continue, and while a definitive agreement is not considered to be necessary
at the moment, as the relationship evolves, one may be required.

    Skylink
    -------

    The Skylink Aviation Inc. agreement, announced November 13, 2007 is
proceeding as planned with a trial installation of one unit. The ISMS Lite(TM)
equipment purchased is in the process of testing and is expected to be shipped
to the customer within 10 days. The customer will evaluate the system and if
it performs up to expectations, is expected to use it in all of their ongoing
and future operations. The agreement provides for both equipment and airtime
purchase by the customer and would be the first ISMS Lite(TM) sale by the
Company. The customer currently operates 30 aircraft in Sudan and will be
operating 10 aircraft in Afghanistan and as such, they have indicated that up
to 40 installations could follow, however, there is no firm commitment by
Skylink to make any such further purchase. As Star determines the exact number
of installations following the trial installation, the Company will provide
further disclosure of the value of this potential contract. Until such time,
the total value is uncertain. At this time, the Company is unaware of any
specific approvals required for the trial installation and any such approvals,
if required, are the responsibility of the client, who will advise Star of any
such requirements on an ongoing basis.

    Indus Airways
    -------------

    Further to the Company's press release dated November 14, 2007, the
agreement between the Company and Indus Airways is scheduled to proceed
immediately upon delivery to Indus of its new aircraft, the MA 60. We are
advised that certain pilot and aircraft certification requirements of the
Indian government with respect to the Chinese aircraft remain outstanding, as
this will be the first time that the MA60 (a Chinese designed and built
aircraft) will be operated by an Indian airline. Star's Chairman, Viraf
Kapadia, met personally with the General Manager, Marketing of Indus Airways
last week, and was assured that the required certification will be forthcoming
shortly. Indus has agreed to purchase fifty (50) ISMS(TM)/satellite phone
systems, with one time initial licensing fees per aircraft to be paid as each
installation occurs, and monthly payments per aircraft to be payable annually,
in advance. Installations and payments will be dependent upon aircraft
delivery schedules and the potential value of this contract will be calculated
and disclosed once the pilot and aircraft certification is complete and
scheduling is determined.

    Kestral Holdings
    ----------------

    As announced December 20, 2007, Star has entered into a strategic
partnership with Kestral Holdings Private Limited. Kestral Holdings is based
in Pakistan and has close to 350 employees active in the fields of Aviation,
Defense Consulting, Trading, Logistics, Air Charter Services and Travel.
Kestral Trading, a subsidiary, is a sales agent for Star, and by agreement
dated January 16, 2008 for an initial three month period (with contemplated
extensions), provides Star with meeting, office support and logistic services
in Pakistan for a nominal amount. Kestral Holdings has significant contracts
in the region, both commercial and military, management believes that Kestral
is in a position to benefit Star's sales and marketing activities.

    About Star Navigation: Star Navigation Systems Group Ltd.      
(www.star-navigation.com) owns the exclusive worldwide license to its
proprietary, patented In-flight Safety Monitoring System, 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.

    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 the content of this news
    release.

    %SEDAR: 00009078E




For further information:

For further information: please visit www.star-navigation.com or Viraf
Kapadia, CEO, viraf.kapadia@star-navigation.com

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STAR NAVIGATION SYSTEMS GROUP LTD.

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