SKY NEWS Purchases Two Norsat NewsLink™ Terminals from Paradigm

Burnaby, British Columbia, Canada (January 20, 2004) - Paradigm Communications Systems Ltd., today announced that the UK’s leading 24 hour news broadcasters, SKY NEWS, purchased two Norsat NewsLinkTM portable satellite terminals for their satellite news gathering (SNG) operations. Paradigm is a leading reseller for Norsat International Inc. (TSX - NII.TO; OTC BB - NSATF.OB) in the UK, Europe, Middle-East, and Africa regions.

Norsat NewsLinkTM enables broadcast quality video satellite connectivity in a very compact, portable terminal that packs into just three airline checkable cases. The Norsat NewsLinkTM, which supports industry standard MPEG-2/DVB-S broadcasting - is built rugged to accommodate the severe operating environments typical experienced in overseas SNG assignments. Norsat NewsLinkTM is also extremely easy-to-use and can be setup and operational in the field in minutes by non-technical personnel.

Jackie Faulkner, Head of Operations at SKY NEWS said, “The Norsat kit allows us a level of flexibility we’ve never had in the past; whether it’s covering a story in London or establishing an uplink in Iraq, we can now get a live feed on the scene quickly in one of our Volvo’s or on a commercial airline flight - whatever the situation demands.”

“We are very pleased to see continued growth in the broadcast market, particularly with a prominent European broadcaster such as SKY NEWS,” said Cameron Hunter, Norsat President and CEO. “European broadcasters like SKY NEWS have long been leaders in satellite news gathering and this sale is a significant first for Norsat in penetrating this important market.”

“Paradigm is very excited to be representing Norsat OmniLinkTM products in the UK and EMEA,” stated Ulf Sandberg, Managing Director of Paradigm. “The Norsat OmniLinkTM portable terminals are a very unique product offering that opens up significant revenue opportunities for Paradigm in the broadcast, government, and military sectors throughout the region.”

About Norsat International Inc.

Norsat International Inc. designs, engineers and markets satellite products for high-speed data transmission. For the past 25 years, Norsat has built a strong reputation in the field of satellite technology by providing its customers with innovative products and has now sold over 2 million products in 87 countries around the world. Norsat’s latest innovation is the Norsat OmniLinkTM line of portable satellite terminal products which provide rapidly deployable broadband satellite data connectivity in areas where traditional communications infrastructure is insufficient, damaged, or non-existent.

About SKY NEWS

Sky News is Europe’s most popular 24-hour news channel. Founded in 1989 it is consistently the first place to turn for breaking news. Noted for its impartiality, Independent Television Commission (ITC) research consistently shows it to be more trusted the BBC News or ITN, the award-winning channel was awarded a BAFTA in both 2002 and 2003 and was named ‘News Channel of The Year’ by the Royal Television Society (RTS) for the second consecutive year in 2003.

About Paradigm Inc.

Paradigm provides wireless, satellite and networking solutions for customer’s requirements worldwide. Based in the UK, Paradigm is in the position to provide services globally from the provision of equipment to the design and installation of turn-key stations and networks.

Paradigm provides its customers with solutions to their equipment and networking needs. We aim to provide a superior level of customer service, functionality, performance, and reliability at competitive prices.

Forward Looking Statements

Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in Norsat’s public filings with securities regulatory authorities.

For more information contact:

Chris McCormack Sophie Burr
Director, Marketing
Phone: 604-292-9092
Email: cmccormack@norsat.com

Norsat International Inc.
300 - 4401 Still Creek Drive
Burnaby, British Columbia
V5C 6G9 Canada
www.norsat.com

Sales & Marketing Assistant
Phone: +44 (0) 870 902 4000
Email: sophie.burr@paracomm.co.uk

Paradigm
Technology House
Station Road
Alton, Hampshire
GU34 2PZ United Kingdom
www.paracomm.co.uk




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