Star Navigation Systems Group Ltd. (TSX VENTURE:SNA) ("Star" or the "Company"),
is pleased to provide an update on various corporate initiatives.


Star Server Unit ("SSU") Completion 

The Company's next generation G2 Star Server Unit is complete. The new unit is
the heart of the STAR-ISMS(R) system and the G2 version combines smaller size,
less weight, increased operational efficiency, high speed and a more favourable
price point. The STAR-ISMS(R) equipment will provide on-board data analysis
allowing transmission of critical real-time data to Paradigm's Data Management
Center, providing a host of valuable options to the customer and the industry.


Paradigm Services 

As noted in Star's press release dated June 22, 2011, the Company entered into a
formal agreement with Paradigm Services Limited, an affiliated company of
Astrium Services, to provide a one-stop shop to market and sell a satellite
communications service to aviation companies. Astrium, a unit of the European
Aeronautic Defense and Space Company (EADS), and Star have utilized the period
subsequent to execution of the agreement for the purpose of integrating their
respective roles and expertise and designing operational interfaces. The
agreement contemplates a number of pilot projects demonstrating the new ADS and
these are expected to be announced in the near future. The pilot projects are
intended to demonstrate the ability of the system to enhance safety, help reduce
fuel and maintenance costs, and provide quick, comprehensive reporting to
management on multiple aspects of flight operations. A state of the art ground
station is nearly complete. In our opinion, this ground station provides a level
of information unsurpassed in the industry. Currently both Star and Paradigm
personnel are completing V,V &T (Verification Validation and Testing) of the ADS
to verify the analyzing, sending and receiving of high speed essential
information and reporting that will provide major airlines both reliability and
safety enhancements. 


Midwest Airlines (Egypt) 

In April 2012, Star received the Transport Canada approved STC for the
installation of the STAR-ISMS(R) on one 737-800 aircraft operated by Midwest
Airlines in Egypt. The Company is now awaiting the availability of the
designated aircraft so that installation of the STAR-ISMS(R) System can
commence. Star and MidWest are also awaiting an ECO (Engineering Change Order)
from the Egyptian Civil Aviation Authority. 


India 

Star continues its efforts in India to secure the necessary Aeromobile License,
required to operate Star's STAR-ISMS(R) System in Indian airspace. 


Pakistan International Airlines ("PIA") 

Star and PIA have been in detailed discussions to provide a cost effective
solution to enhance operational efficiencies and safety at PIA. PIA has recently
had major changes in top management and Star is awaiting the next step in
negotiations.


Shaheen Air International 

In mid-September 2010, the Company entered into an agreement with Shaheen Air
International of Pakistan to install the STAR-ISMS(R) System on one of the
airline's Boeing 737-200/300 aircraft. Due to scheduling issues resulting from
significantly greater than normal operational demands on Shaheen's fleet, work
on obtaining the required Supplemental Type Certificate approval was
intermittent. Shaheen Air has now decided to upgrade its fleet and has sold its
737-200/300 aircraft. As a result, discussions are underway with respect to
installation on its new aircraft.


China 

Scheduling extensions continue with respect to the C919, China's first
indigenously-manufactured large passenger aircraft. Star is advised that no
decisions have been made with respect to the inclusion of the STAR-ISMS(R)
System in the C919. Star is in regular contact with the Commercial Aircraft
Corporation of China, Ltd. ("COMAC") and continues to monitor the situation.


Litigation Update: 

As announced on May 18, 2012, the litigation between Star Navigation Systems
Group Ltd. and FLYHT Aerospace Solutions Ltd. (formerly Aeromechanical Services
Ltd.) has been settled. 


The litigation was originally commenced in 2007 as a result of a lawsuit
launched by Star's former President and Chief Technology Officer, Hilary Vieira
("Vieira"). Star counterclaimed against Vieira, AMS and others for unspecified
damages and sought a permanent injunction against AMS with respect to claims of
inducing breach of contract and interference with economic relationships
resulting from AMS's alleged dealings with Vieira. AMS, in turn, counterclaimed
against Star in the amount of $20,000,000 for interference in contractual
relationships, lost revenue, loss of reputation and loss of goodwill. 


Under the Settlement, each party released the other of any and all claims either
might have against the other existing up to the date of the execution of the
Release. The Settlement has no provision for any payment to be made by either
party. 


Management and the board of Star felt that it had a strong litigation position,
but decided to settle as it was felt that the value of any monetary award
received would not warrant committing additional resources to this matter. The
Company felt that it had achieved its main goals in the litigation and that its
resources were best focused on continuing to monetize Star's technology and
know-how. 


The Company will continue to strongly defend its Intellectual Property against
any infringement.


Major Manufacturers

The Company continues discussions with CMC Electronics Inc. (see release January
26, 2011). Star personnel have visited CMC in Montreal twice recently to work
towards meaningful deliverables to provide CMC customers with value added
benefits for enhanced safety and operational efficiencies.


CAR 561 Update

A Transport Canada Program Validation Inspection of Star Navigation was carried
out in August 2011. The purpose of the Program Validation Inspection ("PVI") was
to verify that Star has effectively implemented a Quality Assurance Program by
examining selected functional area systems, procedures, and the approved company
manual. After review by Transport Canada, the PVI was successfully closed. 


Star is an approved manufacturer of the STAR- ISMS(R) in accordance with
Canadian Aviation Regulations ("CAR's") 561. The CAR 561 certificate allows Star
to declare the airworthiness for newly manufactured ISMS product.


AS9100 Rev. C Update 

Star successfully achieved AS9100 Rev. "C" in 2011. AS9100 Rev. "C" is the
international quality management system standard for the aerospace industry. The
standard provides manufacturers and suppliers with a comprehensive
internationally recognized quality system for providing safe and reliable
products to the aerospace (civil, military) industry. 


Following the annual audit in January 2012, BSI (the certifying organization)
recommended Star for continued certification. Star continues to build and
improve upon the quality processes, infrastructure, planning strategies and risk
management involved in the design and manufacture of our products along the
entire supply chain to achieve a high level of customer satisfaction and
increased market penetration.


About Star Navigation: (www.star-navigation.com) 

Star Navigation Systems Group Ltd. owns the exclusive worldwide license to its
proprietary, patented In-flight Safety Monitoring System, STAR-ISMS(R), 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.


Forward Looking Statements 

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.


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