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U.S. Government Buys $3.2M of Norsat NewsLink Portable Satellite Terminals

Norsat International Inc. ; announced today the award of $3.2 million in contracts from the U.S. Department of Defense (DOD) for Norsat NewsLink(TM) portable satellite terminals to be delivered over the next two months.

The U.S. military has purchased the Norsat NewsLink(TM) terminals to provide news coverage of events in the Middle East. Most of the portable terminals ordered will be used to augment the Norsat NewsLinks(TM) already deployed in the Army's Digital Video and Imagery Distribution System (DVIDS). The DVIDS initiative was developed to provide local media stations in the U.S. with access to frontline video footage from Iraq and Afghanistan.

The Norsat NewsLink(TM) terminals are used to disseminate video, photos, print stories and interviews gathered by military journalists to media organizations via satellite transmission as opposed to the traditional method of mailing videocassettes back to the United States. "These capabilities have revolutionized the Army's ability to provide real-time, broadcast quality coverage of events in the Middle East to the local media in the U.S.," stated Lieutenant Colonel William Beckman, Director of Operations for the DVIDS program. "Our previous distribution capability was to mail tapes back from overseas. Now we can provide media organizations with live, interactive interviews with commanders, soldiers or subject matter experts."

In addition to newsgathering activities, the terminals will be used to convey personal messages from overseas military personnel back to their families on major holidays such as the 4th of July and Thanksgiving. By using the Norsat NewsLink(TM) terminals the Army will achieve a dramatic reduction in the cost and distribution time of these "Hi Mom" video clips.

"We are extremely encouraged by the continued demand for the Norsat NewsLink(TM) by the U.S. government," said Cameron Hunter, Norsat President and CEO. "The most powerful testament to the performance and quality of our portable terminals is repeat orders from our customers. We have achieved this with the U.S. DOD and continue to forge strong partnership with various groups within this organization."

The Norsat NewsLink(TM) provides broadcast quality video satellite connectivity in a compact, portable terminal and is designed to withstand the rigors of operating environments typical in many overseas deployments.

About Norsat International Inc.

Norsat International Inc. designs, engineers and markets satellite products for high-speed data transmission. For more than 25 years, Norsat has built a strong reputation in the field of satellite technology by providing its customers with innovative products and has now sold over 2.5 million products in 87 countries around the world. Norsat's latest innovation is the Norsat OmniLink(TM) line of portable satellite terminal products that provide rapidly deployable broadband satellite data and video connectivity in areas where traditional communications infrastructure is insufficient, damaged, or non-existent.

Forward Looking Statements

Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in Norsat's public filings with securities regulatory authorities.

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