MANUFACTURING PLANT TO PRODUCE AIR NAVIGATION SYSTEM AHEAD OF SCHEDULE

Released on December 15, 1995

Economic Development Minister Dwain Lingenfelter today joined with
senior officials of Pelorus Navigation Systems Inc. to announce the
official opening of a plant to manufacture the company's innovative,
ground-based aircraft navigation systems known as Local Area
Differential Global Positioning Systems (LADGPS).

The plant was scheduled to be established in 1996 after the company's
navigation system had received certification. But because of Pelorus'
strategic alliance with Honeywell Corporation and worldwide demand,
international orders for the system have been so strong that Pelorus
has gone ahead with production.

Pelorus has firm orders for 11 systems including orders from the United
States, Australia and Russia.

The project has created six jobs with Pelorus in Saskatoon and is
expected to generate annual sales of more than $25 million which will
create at least 100 jobs in Saskatchewan advanced technology firms over
the next two years.

For example, Pelorus has already placed more than $1 million worth of
business with SED Systems Inc. of Saskatoon for engineering work, and
has contracted product supply from three other Saskatchewan suppliers.

In addition, SED Systems has signed a $1.4-million contract with
Honeywell Inc. to supply engineering and initial production of
receivers for Honeywell's aircraft navigation systems. Incorporated
into its contract is an agreement that will see SED Systems supply one
type of receiver to Honeywell for Satellite Landing System units sold
worldwide.

"Our current Partnership for Renewal consultations with Saskatchewan
sector and community stakeholders confirm that strategic alliances with
major international players, together with export development and
advanced technology, are key areas on which to focus our efforts,"
Lingenfelter said.

"This project certainly confirms that conclusion. The Pelorus plant is
being established a year ahead of schedule due to export sales
occurring sooner than anticipated. This will establish the
manufacturing jobs and subcontract opportunities much earlier than
originally expected.

Saskatchewan Highways and Transportation, which is responsible for
airport operation in the province, will purchase five LADGPS units
through funding obtained from the Canada-Saskatchewan Infrastructure
Works programs. The first unit will be installed and tested at the
Regina airport so it can be certified by Transport Canada while the
remaining four units will be designated for airports in northern
Saskatchewan.
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For more information, contact:

Tom Douglas Mark Roberts
Executive Director Operations Director, GPS
Saskatchewan Economic Development Pelorus Navigation Systems Inc.
Regina Saskatoon
Phone: (306) 787-8178 Phone: (306) 249-2089