These vessels include the M80 Stiletto, an operational experimental craft for the Pentagon's Office of Force Transformation (OFT); the stealth, semi-submersing speedboat SEALION II (SEAL Insertion, Observation, Neutralization) for Naval Special Warfare; and the U.S. Navy ship, Joint Venture High Speed Vessel Experimental One (HSVX-1).

The M80 Stiletto and the SEALION initiatives are part of OFT's Wolf PAC Distributed Operations Experiment, conducted in association with USSOCOM, to explore command and control of geographically dispersed, but networked, autonomous, and semi-autonomous military forces. This new concept of operations by the Department of Defense is in response to diffuse threats that are perceived to be emerging.

"OSI technology is becoming the military navigation system of choice for U.S. defense programs that test advanced technologies for future military use," said Ken Kirkpatrick, president and chief executive officer of OSI. "In particular the Wolf PAC initiative, which includes the M80 Stiletto and the SEALION, undertakes to explore technologies that resolve some of the challenges of modern warfare. Our advanced systems provide dynamic tactical and operational data, helping to improve decision making and increase mission safety and effectiveness. The opportunity to demonstrate our leading-edge military navigation system to the U.S. defense community is a substantial win for OSI."

M80 Stiletto

M80 Stiletto was launched on January 31, 2006 by M Ship Co. of San Diego. OSI was awarded this contract by Azimuth Inc., a subcontractor of M Ship with responsibility for the vessel's communications, surveillance, and weapons systems.

SEALION II

The SEALION program is a test bed for examining technologies for transporting special operations forces on combat missions. The SEALION I, delivered in January 2003, has been tested by the Naval Special Warfare Group. The SEALION II, that integrates the OSI navigation system, is expected to be delivered to the Navy soon. OSI was awarded the contract by Azimuth Inc.

HSVX-1

OSI's military navigation system is being upgraded on the HSVX-1. The system was first installed in April 2005. OSI was awarded this contract by L-3 Titan Corporation. The HSVX-1 initiative tests a variety of technologies that will allow the U.S. Navy to operate more effectively in littoral, or near-shore, waters.

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