NovAtel Inc.
announced today that it has been awarded a contract by
the European Space Agency (ESA) for definition work on Galileo, the
proposed European satellite navigation system.

Under the contract, NovAtel will provide input to ESA on signal
validation and receiver development requirements.

“NovAtel is delighted to receive this contract from ESA,” said
Werner Gartner, NovAtel’s acting President and Chief Executive
Officer. “We look forward to our participation in this important
European program and, while this is an initial contract, NovAtel hopes
to continue its involvement in Galileo in the long term.”

Tony Murfin, Director, Aviation Group at NovAtel, added, “As an
industry member helping in Galileo definition work, we will provide
valuable initial input to help shape receiver development
requirements. We are very pleased to be part of the Canadian team
working on Galileo, under the leadership of the Canadian Space

Under this initial $190,000 Cdn contract, NovAtel will review
draft Galileo signal specifications and provide feedback on receiver
performance, development requirements and cost implications. The study
will be completed over the next six to eight months, working directly
with ESA technical management.

The Galileo project, jointly initiated by the European Union and
the European Space Agency, aims to launch a series of Medium Earth
Orbit satellites in three orbital planes at 20 000 km, monitored by a
network of ground control stations, to provide world-wide navigation
services. The European Commission has received a mandate to run and
pilot a major industrial project of global dimension. A decision on
the next phase of Galileo development is anticipated shortly.

NovAtel designs, markets and supports a broad range of products
that determine precise geographic locations using the Global
Positioning System (“GPS”). NovAtel’s GPS products are used
principally for applications in high-end markets such as surveying,
geographic information systems, aviation, marine, mining and machine
control and agriculture. For further information please visit our
website at

Certain statements in this news release constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company, or
developments in the Company’s industry, to differ materially from the
anticipated results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, but are not
limited to, operating results of affiliates and subsidiaries,
including Point, Inc., establishing and maintaining effective
distribution channels, certification and market acceptance of the
Company’s new products, impact and timing of large orders, pricing
pressures in the market and other competitive factors and maintaining
technological leadership, timing of revenue recognition in connection
with certain contracts, the ability to maintain supply of products
from subcontract manufacturers and the supply of components to build
products, the impact of industry consolidations which has made certain
competitors larger and stronger, together with the other risks and
uncertainties described in public filings.