Our Aerospace
and Defence revenue is highly dependent on the timing of government
contracts and can be quite variable quarter to quarter.229 $1.

"DARPA is always interested in computing infrastructure that might allow
significant numbers of people to leverage their work -- you can look at the
ARPANet and the Internet, both of which came out of our office , as
examples."

This technology can be leveraged by advanced knowledge discovery and
business intelligence applications to incorporate information that was
previously difficult to understand and leverage.

wearables wearable

Institutional investors can access the
call via CCBN's password-protected event management site,
StreetEvents (www.

The result of more than 4 years of development by IBM Research, UIMA has
also received significant support from the Defense Advanced Research
Projects Agency (DARPA ), the central research and development organization
for the Department of Defense.

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0 million) or CDN
$0.
The majority of this year-over-year revenue increase is attributable
to higher product shipments into the surveying/mapping and the
precision agriculture markets, as well as higher shipments of product
into China.fulldisclosure.

dialing projected

"As our customers develop and expand their market
penetration with products that incorporate NovAtel technology, we
expect our Special Applications category will continue to be the
growth engine for NovAtel," Ladd continued.novatel.25

Weighted average shares outstanding
(diluted) 8,730 8,588

NOVATEL INC. The other
organizations actively supporting and using UIMA include Science
Applications International Corp.

The technology will be presented to Open Source Technology Group with
availability through SourceForge expected by the end of year 2005.

augmented reality).

tactile augmented

5 million (US $9.43 (US $0.

"Our revenue for the first quarter of 2005 of CDN $15.4 million
and operating income of CDN $3., and Point management to improve the operating
performance at Point," concluded Ladd.

PRESS RELEASE IBM to Open Source Technology for Analysis of Unstructured Information

IBM today announced plans to make
available through open source its Unstructured Information Management
Architecture (UIMA ), a technology designed to support a new breed of
software applications that can process text within documents and other
content sources to understand the latent meaning, relationship and relevant
facts buried within.

There has been an explosion of "unstructured" information in the enterprise
and across the web, taking the form of documents, images, comment and note
fields, e-mail and even rich media like video and audio.

"UIMA provides, for the first time, true interoperability among different
knowledge discovery, search, business intelligence and text analytics
software," noted Arthur Ciccolo, Department Group Manager for Information
and Knowledge Management, IBM Research.

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, BBN Technologies , The Mayo Clinic and
MITRE Corporation. "This initiative will enable
organizations to deliver groundbreaking solutions that can leverage
unstructured information in entirely new and advanced ways.

wearable wearables

com or by visiting any of the
investor sites in CCBN's Individual Investor Network such as America
Online's Personal Finance Channel, Fidelity Investments(R)
(Fidelity. NovAtel's solutions combine hardware, such as
receivers and antennas, with software to enable its customers to
fully integrate the Company's high-precision GPS technology into
their respective products and systems.43 $ 0.

ficom unisa

25 (US $0. I am especially pleased to report these record
results in a quarter where, as expected , the contribution from our
Aerospace and Defence category was down year over year. In the first
quarter , sales to our core OEM customers as well as to system
integrators more than compensated. We expect deliveries to be
completed in the second quarter of 2005," added Ladd. In addition, the improved
profitability and focused management of our working capital enabled
us to generate positive operating cash flow for the fourteenth
consecutive quarter. This
reclassification is based on a change in the Company's anticipated
use of its various tax shields.

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19) per share
(diluted) in the similar period a year ago.

NovAtel's Executive Vice President and CFO, Werner Gartner,
commented, "A number of factors, particularly the growth in revenue
and higher gross margins on product sales , contributed to net income
increasing to CDN $3."

The Company is also announcing that it is reclassifying various
expenses and benefits associated with its income taxes on its
statement of operations for the year ended December 31, 2004, as
previously reported in our press release dated March 10, 2005.
Individual investors can listen to the call through CCBN's individual
investor centre at www.

NOVATEL INC.

The UIMA framework has already been embedded in IBM products , including IBM
WebSphere Information Integrator OmniFind Edition, the first commercially
available software platform for processing content based on the UIMA
standard.

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(NASDAQ:NGPS), a precise positioning technology company, today
announced its financial results for the first quarter ended March 31,
2005.4 million (US
$12.5 million) in the
similar period a year ago.com

A replay of the conference call will be available until May 18,
2005 by dialing 1-888-509-0082 (North America ) or 416-695-5275
(International), or until July 15, 2005 at the web addresses noted
above. The Company is focused on
supplying core high-precision positioning technology to OEMs and
system integrators who build systems for various end market
applications.

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The Company previously announced that it expected lower revenue
in its Aerospace and Defence category during 2005.21 per US dollar as of March 31, 2005.

The US dollar financial information presented above is translated
from the Canadian dollar financial information at the average rates
in effect during the relevant reporting periods, as follows:

Three months ended
March 31,
--------------------
2005 2004
--------------- -----
Canadian dollar per US dollar $1.

The web cast is also being distributed over CCBN 's Investor
Distribution Network to both institutional and individual investors. (Nasdaq:NGPS)

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35) per share (diluted) compared to a net income of CDN
$2.1 million (US $1. For more information , visit www.com

Certain statements in this news release, including those about
the Company 's future plans and intentions, financial guidance,
long-term growth prospects, levels of activity or other future
events, are 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 Point, establishing and maintaining effective distribution
channels, certification and market acceptance of NovAtel's new
products, impact and timing of large orders, credit risks of
customers and Point, pricing pressures in the market and other
competitive factors, maintaining technological leadership, timing of
revenue recognition in connection with certain contracts, US dollar
to Canadian dollar exchange rate fluctuations, actions by
governmental authorities, and other factors described in our Form
20-F and other SEC filings , many of which are beyond the control of
NovAtel.

wearables extensively

NovAtel Inc. Reports Record Revenue and Operating Income for the First Quarter 2005

The CDN/US dollar exchange rate has declined
from an average rate of approximately CDN $1. 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.

CONSOLIDATED BALANCE SHEETS
(in Canadian $ thousands - unaudited )

March 31, December 31,
2005 2004
------ --------------------
ASSETS

Current assets:
Cash and cash equivalents $ 4,584 $ 8,949
Short-term investments 19,989 14,410
Accounts receivable 9,033 9,413
Related party receivables 1,458 1,591
Related party notes receivable 1,622 1,614
Inventories 5,046 5,191
Prepaid expenses and deposits 716 268
Future income tax asset - current
portion 1,563 1,286
-------- ------------------
Total current assets 44,011 42,722

Capital assets 3,228 3,447
Intangible assets 2,577 2,515
Deferred development costs 2,014 2,359
Future income tax asset - long term
portion 2,181 1,903
--------------------------
Total assets $ 54,011 $ 52,946
--------------------------
--------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities $ 6,476 $ 9,148
Related party payables 349 345
Note payable 1,622 1,614
Deferred revenue 631 755
Provision for future warranty costs 571 538
--------------------------
Total current liabilities 9,649 12,400

Deferred gain on sale/leaseback of
capital assets 425 453
--------------------------
Total liabilities 10,074 12,853
--------------------------

Shareholders ' equity:
Capital stock 38,904 38,870
Contributed surplus 508 442
Retained earnings 4,525 781
--------------------------
Total shareholders ' equity 43,937 40,093
------- -------------------
Total liabilities and shareholders'
equity $ 54,011 $ 52,946
---------------------- ----
--------------------------

NOVATEL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in Canadian $ thousands, except per share data - unaudited )

Three months ended
--------------------------
March 31 , March 31,
2005 2004
--------------------------
Revenue:
Product sales $ 14,106 $ 10,891
NRE fees 1,251 1,611
--------------------------
Total revenues 15,357 12,502
-- ------------------------

Cost of sales:
Cost of product sales 5,697 4,738
Cost of NRE fees 603 825
--------------------------
Total cost of sales 6,300 5,563
------------------------ --

Gross profit 9,057 6,939
--------------------------

Operating expenses:
Research and development 2,338 2,038
Selling and marketing 1,567 1,454
General and administration 1,817 1,306
--------------------------
Total operating expenses 5,722 4,798
--------------------------

Operating income 3,335 2,141

Interest income, net 153 53
Other expense (22 ) (41)
Benefit of prior years' investment
tax credits 1,036 -
--------------------------

Income from continuing operations before
income taxes 4,502 2,153

Income taxes
Current provision 1,313 12
Future income tax expense (benefit) (555) -
--------------------------

Net income $ 3,744 $ 2,141
--------------------------
--------------------------

Net income per share (basic ) $ 0. However, the
technology has not existed to allow software to search out and make sense
of these disparate forms of data.
Ronald J. Ultimately it will
enable computers to extract deeper levels of meaning from such information
-- including the relationships that define specific facts.

Research groups, university departments, and similar working on wearable computing/wearable electronics or closely related areas (e.

unisa augmented

6 million) or CDN $0. ET. Having an open-source framework for deploying text analysis
components will help us deliver more advanced solutions for the national
security community. The UIMA
framework can currently be downloaded free of charge from IBM AlphaWorks at
http://www.

contextual numeric

The Company is reporting net income for
the first quarter 2005 of CDN $3. I believe our Q1 results are a
great start to the year.4 million from the "current provision for
income tax" and "future income tax benefit" sections of the statement
of operations to "benefit of prior years' investment tax credits. "We saw the potential of UIMA to help bring together and multiply
the effects of the work of a large community of researchers, and are
excited to see the strong momentum and support shown by the Working Group
members.

middleware penmap

"

The Company's first quarter 2005 revenue in its Special
Applications category grew by 35% over the similar period in 2004. As anticipated ,
first quarter revenue from the Company's Aerospace and Defence
category decreased by 22% over the similar period a year ago, largely
due to the substantial completion during 2004 of certain contracts
with Raytheon Company for the next generation Wide Area Augmentation
System (WAAS) program. Ltd .7 million in the first quarter of 2005 compared
to the first quarter of last year. The net effect of the
reclassification does not result in any changes to the balance sheet,
revenue, net income and earnings per share. IBM WebSphere Portal Server and Lotus Work Place also leverage
UIMA for content processing.

wearable penmap

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. UIMA also provides tools to speed the creation of new,
reusable analytic software components to handle unstructured information."

The contributors included several leading universities, along with
industrial research and development organizations.

ui sourceforge

; 2005 trends; and
recognition of future income tax assets.fulldisclosure.

g.

numeric wearable

Business Editors

CALGARY, Alberta----NovAtel Inc.

Revenues in the first quarter 2005 were CDN $15.3 million represent quarterly
records," said Jon Ladd, President and CEO. "As announced earlier this year, we received
an additional contract from Raytheon Company to supply Satellite
Based Augmentation System (SBAS) equipment in support of the
ground-based elements of the Indian GPS and Geostationary Earth Orbit
Augmented Navigation (GAGAN) program.

Revenue in the Company's Geomatics category in the first quarter
of 2005 increased by 18% over the similar period a year ago due to
higher product sales attributable to the Company's joint venture ,
Point, Inc. conference call by dialing
1-800-565-0813 (North America) or 416-695-9707 (International ).streetevents.com

NovAtel designs, markets and sells high-precision GPS and other
positioning components and sub-systems used in a wide variety of
commercial applications principally in the aviation , geomatics
(surveying and mapping), mining, precision agriculture, marine and
defence industries .

contextual landwarrior

"The majority of this
year-over-year revenue growth is attributable to our Special
Applications category.

The Company will have a conference call today at 4:30 p.m. These factors should be considered carefully and undue
reliance should not be placed on the forward-looking statements. UIMA provides an open software framework
with standard interfaces for adding unstructured information analytics to
any application. This framework makes it easy to integrate the analytic
software tools and end-to-end enterprise applications across several
different vendors. DARPA and IBM formed a working group
consisting of experienced research members who have contributed their
expertise in unstructured information management to the evolution of UIMA.

unisa wearable

7 million (US $3. "We continue to work with our joint venture partner,
Sokkia Co."

Foreign Exchange

Although approximately 95% of the Company's revenues are earned
in US dollars, the Company's financial results are reported in
Canadian dollars and in accordance with Canadian generally accepted
accounting principles.

30 per US dollar in all
of 2004 to a rate of CDN $1.com) and others.alphaworks.ibm.

augmented ui

5 million) compared to CDN $12.320

During the conference call scheduled for this afternoon, the
Company will be providing updates and further information on the
following: revenues from the Special Applications , Aerospace +
Defence and Geomatics categories; Point, Inc. UIMA can also be used to
support broader enterprise search applications by providing a common
mechanism for developing and delivering natural language processing
solutions. It can help computers understand and reason across the wide
variety of information sources available to humans.

abertay projected

Wherever possible, words such as "anticipate",
"believe ", "expect", "may", "could", "will", "potential", "intend",
"estimate", "should", "plan", "predict " or the negative or other
variations of these words, or similar words or phrases, have been
used to identify these forward-looking statements.45 $ 0. In addition, widespread commercial adoption of UIMA was
announced today among more than 15 software vendors.

wlan abertay

Projects like these allow the government to achieve a large,
multiplicative effect with only a small investment of money," said Dr. Brachman , Director of DARPA's Information Processing Technology
Office.com/tech/uima.

eth extensively

The change will result in
a reclassification of $4.
Participants may access the NovAtel Inc. This
call is also being web cast and can be accessed at NovAtel's web site
www.27

Weighted average shares outstanding
(basic) 8,261 7,991

Net income per share (diluted) $ 0. Some of the universities
that participated, such as Carnegie Mellon University, Columbia University,
Stanford University and The University of Massachusetts Amherst , are
already using UIMA in courses and research projects.