Archive 2002

NovAtel Inc. Awarded Galileo Receiver Contract by European Space Agency

For Immediate Release	Program Contact	Tony Murfin (403) 295-4512
	Investor Contact:	Sonia Ross (403) 295-4532

(Calgary, Alberta, Canada, December 18, 2002) - NovAtel Inc. (NASDAQ: NGPS), a precise positioning technology company, announced today a 220,000 (Euro) contract award by the European Space Agency (ESA). The contract is for the initial development phase of the Ground Reference Receiver for the European Galileo program. Work on this contract is to be completed by February 2003. Galileo is the EU’s state-of-the-art Global Navigation Satellite System, which is expected to be fully operable by 2008 with up to 30 satellites orbiting the earth. NovAtel and ESA are also working toward replacing this interim agreement with a full contract worth 500,000 Euros. Work under this additional contract would be completed by the end of Q4 2003.

The primary objective of the contract is to develop requirements for the Galileo Ground Reference Receiver (GRR). A secondary objective is to confirm and verify the specified performance by creating a software model of the receiver. NovAtel will also create a top-level structural design for the GRR. The GRR program is anticipated to subsequently progress through prototyping, full-scale development and qualification, and through to production. GRR receivers will be fielded at each Galileo reference site to provide constellation monitoring information for the Galileo control network.

“As a Canadian supplier, this is an important opportunity for NovAtel. To be selected by ESA for initial development of key Galileo infrastructure is a very significant award,” said Tony Murfin, NovAtel’s Vice President of Business Development. “The support we have been given by Canada and the Canadian Space Agency (CSA) has allowed NovAtel to bid and receive this contract. This award will be instrumental in positioning NovAtel to develop and build GRR’s for the Galileo program.”

NovAtel is the principle supplier of GPS receivers to ground reference networks around the globe. Currently NovAtel supplies receivers to national satellite-based augmentation systems (SBAS) including the U.S. WAAS, European EGNOS, Japanese MSAS, and Chinese SNAS. The Company anticipates that as subsequent phases go forward, NovAtel should be able to offer Galileo upgrades to these GPS ground reference networks worldwide.

NovAtel Inc. is a leading provider of precise global positioning and augmentation technologies designed to afford our customers rapid integration and exceptional return on investment. The Company’s core technology is being applied in diversified positioning markets around the globe including agriculture, mining, marine, surveying, unmanned systems and machine control. For more information, visit www.novatel.com.

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 subsidiaries and joint ventures, establishing and maintaining effective distribution channels, certification and market acceptance of the Company's new products, impact and timing of large orders, credit risks of customers and joint ventures, financing of joint ventures, pricing pressures in the market and other competitive factors, maintaining technological leadership, timing of revenue recognition in connection with certain contracts, the ability to maintain supply of products from subcontract manufacturers, the procurement of components to build product, product defects and the impact of industry consolidations, together with the other risks and uncertainties described in Management’s Discussion and Analysis of Financial Condition and Results of Operations herein and in the Company’s other filings with the United States Securities and Exchange Commission.