Norsat Announces ESOP Placement

18 January 2009

Norsat International Inc. will offer common shares for purchase through an Employee Share Ownership Plan (“ESOP”) under the Employee Investment Act (British Columbia). The share ownership plan will enable employees, full-time contractors and directors to purchase up to 1,000,000 common shares of the Company at a price of US$0.536827 per common share for total gross proceeds of up to US$536,827. The Company’s ESOP offering is expected to be open to eligible persons until February 15, 2010.

Each eligible employee, full-time contractor and director will be offered an equal number of common shares to purchase.

The Company's offering under its ESOP will be conducted in accordance with the requirements of the Toronto Stock Exchange and the Employee Investment Act.

The plan provides eligible participants with several tax and other advantages. Purchases under the ESOP plan are eligible for contribution into a Registered Retirement Savings Plan (RRSP). In addition, purchases may also be eligible for certain British Columbia provincial tax credits under the Employee Investment Act.