Norsat International Inc. (”Norsat”) (TSX: NII and OTC BB: NSATF) will use a new repayable investment from the Canadian federal government to invest in research and development (R&D) activities to accelerate its product development timeline. Norsat’s R&D objectives will include: designing components that enable ground satellite systems to operate reliably over significant temperature ranges and in extreme environmental conditions; examining flat antenna technologies to increase satellite system portability; developing automatic integrated control consoles that make it easy for non-technical users to operate ground-based satellite equipment; and introducing new products for the wireless communication market that complement the company’s satellite system offerings. Under the terms of the agreement, the C$5.97 million repayable investment Norsat has received through the Strategic Aerospace and Defence Initiative (SADI) represents a portion of the company’s funding eligible R&D expenses over the next five years, which Norsat anticipates will total approximately C$17.0 million. The repayment term is over a maximum period of 15 years and uses a royalty formula based on Norsat’s revenue growth.