News Release

First GII Reference Receiver Equipment Shipments by NovAtel Inc. for Australian GRAS Program

CONTACT:	Tony Murfin (403) 295-4512
INVESTOR CONTACT:	Sonia Ross (403) 295-4532

(Calgary, Alberta, Canada, August 8, 2007) - NovAtel Inc. (NASDAQ: NGPS), a precise positioning technology company, has received a purchase order worth US$750,000 to supply its GII reference receivers to Honeywell (NYSE: HON) in support of the Australian Ground-based Regional Augmentation System (GRAS) program. The NovAtel reference receivers will be built into an initial GRAS long baseline ground reference network, which monitors GPS satellite performance and provides augmented GPS information to aircraft. It is anticipated that this ground network will be expanded to extend coverage in subsequent phases of the GRAS program.

This purchase order from Honeywell follows on from an award to Honeywell in August 2006 by Airservices Australia, the Australian government’s air navigation service provider, to develop a new system that will enhance the accuracy and integrity of global positioning system (GPS) navigation. This system is expected to improve air safety by providing much needed vertical guidance and will enable many smaller airports without traditional navigation aids to continue operations in reduced visibility conditions.

The new GRAS will utilize a network of very high frequency (VHF) radio stations that will transmit radio signals that provide augmented GPS information to suitably equipped aircraft within VHF radio range. While an aircraft is in the en route phase of flight, the GRAS signal improves navigation accuracy, integrity and overall safety. In the terminal area, the improved accuracy and integrity enables GPS to provide lateral and vertical guidance, enabling pilots to safely fly an instrument approach down to within 250 feet above the ground in low visibility or terrain challenged environments.

A GRAS reference station compares GPS satellite information output by NovAtel’s GII reference receivers with the station’s surveyed location, provides the information to two Master Control Stations (for redundancy) that add integrity and control, then links that information to the VHF transmitters for broadcast to airplanes. The aircraft’s navigation system uses this information to correct its calculated position.

According to Tony Murfin, NovAtel’s Vice President, Business Development, “NovAtel’s GII reference receiver equipment is already used in ground reference networks in the US, Canada, Mexico, Europe, Japan, China and India. We are excited to have been selected by Honeywell as a supplier for the new Australian GRAS program.”

This equipment is scheduled to be shipped to Honeywell during the second half of this year.

About NovAtel Inc.

NovAtel Inc. (NASDAQ:NGPS) is a leading provider of precision Global Navigation Satellite System (GNSS) components and subsystems that afford its customers rapid integration of precise positioning technology. The Company’s mission is to provide exceptional return on investment and outstanding service to our customers. An ISO 9001 certified company, NovAtel is focused on developing quality OEM products including receivers, antennas, enclosures and firmware that are integrated into high precision positioning applications worldwide. These applications include surveying, Geographical Information System (GIS) mapping, precision agriculture machine guidance, port automation, mining, marine and defence industries. NovAtel’s reference receivers are also at the core of national aviation ground networks in the USA, Japan, Europe, China and India. The Company is committed to providing its customers with advanced positioning technology through significant R&D investment focusing on the modernized Global Positioning System (GPS), the revitalized Russian GLONASS and the emerging European Galileo satellite systems, as well as the integration of additional complementary technologies such as Inertial Measurement Units (IMUs). For more information, visit www.novatel.com.

Certain statements in this news release, including those about the Company’s future plans and intentions, including those about the Company’s expected shipments into the GRAS program, long-term growth prospects, levels of activity or other future events, are forward-looking statements. These forward-looking statements are not based on historical facts but rather on management’s current expectations regarding NovAtel’s future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, “forecast” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements, including operating results of the Company’s joint venture Point, Inc. (“Point”), U.S. dollar to Canadian dollar exchange rate fluctuations, establishing and maintaining effective distribution channels, certification and market acceptance of NovAtel’s new products, the impact and timing of large orders, dependence on key customers, credit risks of customers and the Company’s joint venture Point, 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 products, product defects, the impact of industry consolidations, including the proposed merger between Sokkia Co. Ltd. and Topcon Corp., vulnerability to general economic, market and business conditions, competition, environmental and other actions by governmental authorities, reliance on key personnel and other factors described in the Company’s Form 20-F for the year ended December 31, 2006 and other SEC filings, many of which are beyond the control of NovAtel. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. These forward-looking statements are made as of the date of this news release, and NovAtel assumes no obligation to update or revise them to reflect new events or circumstances.