Archive 2003

NovAtel Inc. Selected to Develop a GPS Differential System for the ION and the National Aeronautic Association

FOR IMMEDIATE RELEASE

INVESTOR CONTACT:

Sonia Ross (403) 295-4532

(Calgary, Alberta, Canada, August 12, 2003) - NovAtel Inc. (NASDAQ: NGPS), a precise positioning technology company, announced today that it has been selected by The Institute of Navigation (ION) and the National Aeronautic Association (NAA) to develop a GPS differential system for use by the NAA in establishing straight course speed records for aircraft in flight. The system is expected to be complete by May 2004.

One of the primary functions of the NAA is to encourage, coordinate, document and promote competition and record-making aviation and space events in accordance with the rules prescribed by the Federation Aeronautique Internationale (FAI), of which NAA is the official US representative. The FAI Sporting Code requires a 0.25% overall system accuracy in the measurement of record speed over a three-kilometer course. As speeds increase and the time to traverse the three-kilometer course decreases, it becomes impossible to assure the required 0.25% system accuracy using hand-timing techniques. Overall, as aircraft performance improves, the measurement of these types of records becomes equipment and manpower intensive. A GPS system could significantly reduce the equipment costs and manpower currently required for these records.

“It is an honour to have been chosen to provide this measurement and scoring system to the NAA, as it will showcase NovAtel’s ability to manufacture equipment that provides extremely precise position and velocity measurements under very high dynamic situations,” stated Pat Fenton, Chief Technology Officer of NovAtel Inc.

Phil Ward, chairman of this ION program, acknowledged, “The ION Satellite Division approved the funding of the GPS Flight Recorder development because there is a clear need to advance the state of the art in this area. Both the ION and NAA were extremely pleased with NovAtel’s proposal, which provides the GPS equipment and technology base for this development effort, and creates an educational opportunity for a University of Calgary Co-op student. Our expectation is that this will be a very successful GPS Flight Recorder development.”

The ION is a non-profit professional society dedicated to the advancement of the art and science of navigation. It serves a diverse community including those interested in air, space, marine and land navigation and position determination. The Satellite Division of the ION, which is supporting this effort, encourages the development, operation and use of navigation and position determination systems incorporating satellite-based elements.

The Chairman of the NAA Contest and Records (C&R) Board, Stan Nelson, added, “The technology that the NAA C&R Board has been using for flight test speed measurements over the past several decades has not kept pace with advancements in aeronautic designs and materials. We are moving away from the use of high speed photographic and optical timing systems with millisecond timing at best, to the use of space-based satellite systems and carrier phase processing, like the system NovAtel is developing, which should provide microsecond course time measurement precision.”

The NAA is the national aero club of the United States. Its primary mission is the advancement of the art, sport and science of aviation and space flight by fostering opportunities to participate fully in aviation activities and by promoting public understanding of the importance of aviation and space flight in the United States.

NovAtel Inc. is a leading provider of precise global positioning and augmentation technologies designed to afford our customers rapid integration and superior 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. NovAtel is also the prime supplier of GPS ground reference receivers to national satellite-based augmentation systems worldwide including the U.S. WAAS, Europe EGNOS, Japan MSAS and China SNAS. 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 the Company’s filings with the United States Securities and Exchange Commission.