Menlo Park, Calif, USA-December 20, 2005 - Novariant announced today the successful deployment of its Terralite XPS solution at the Phelps Dodge Morenci Mine, Morenci, Ariz. During a six month testing period, the system demonstrated over 99 percent positioning availability in traditionally problematic areas near mine highwalls. The Terralite XPS system is composed of a network of transmit stations (Terralites) and any number of mobile receivers. Terralites broadcast a new positioning signal, called "XPS," throughout the mine to receivers on equipment such as blast-hole drills and cable shovels.

"Terralites provide positioning under conditions where GPS-only or GNSS-enhanced receivers are blocked by highwalls and other obstructions in the mine," said Mark Bartlett, manager of Phelps Dodge Mine Technology Group. "GPS outages that would have hindered our machine operations in the past are no longer an issue - software applications that depend on accurate positions can, for the first time, remain uninterrupted," continued Bartlett. Detailed results from the Phelps Dodge deployment were publicly presented at the Institute of Navigation ION 2005, Long Beach, Calif., in a paper delivered by Dr. Kurt Zimmerman, chief architect of Terralites and a Novariant founder.

Demand for Terralites is high, especially in deep, open pits where high-precision software applications are prevalent. "We expect mining customers to derive significant operational efficiencies, especially as more applications are developed that rely on accurate, and 24/7 available positioning. With Terralites, developers of high-precision software applications are no longer faced with the challenge of accurate positioning in this extreme environment," says Anthony Bruno, senior director of marketing at Novariant. For software application developers, Novariant provides positioning outputs based on industry standard formats, simplifying the integration process. System support and software maintenance is provided via TCP/IP, and connectivity to each Terralite component can be achieved using commonly used radio communications networks. "Given that most mine sites are remote and difficult to access, wireless capability is essential to maintain a high level of support and service. This unique capability also offers a greater level of control by the mine site," says Bruno.

For more information, visit www.novariant.com/mining.

About Novariant, Inc.

Novariant is the premier industrial solutions provider for precision positioning, intelligent control systems and positioning infrastructures. The company's precision solutions are enabled by the Global Positioning System (GPS) and other patented location and communications-based technologies to automatically steer equipment, map terrain, and land aircraft. Founded in 1994, Novariant can be found at www.novariant.com.

About Phelps Dodge

Phelps Dodge Corp. is one of the world's leading producers of copper and molybdenum, the largest producer of molybdenum-based chemicals and continuous-cast copper rod, and among the leading producers of magnet wire and carbon black. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ approximately 15,500 people worldwide.

Source: Novariant, Inc., December 20, 2005.