BOATRACS, INC.
                      10675 Sorrento Valley Road, Suite 200
                          San Diego, California, 92121

                            NOTICE OF ANNUAL MEETING
                                 OF SHAREHOLDERS
                           TO BE HELD ON MAY 11, 1999

         The Annual Meeting of the Shareholders  ("Annual Meeting") of BOATRACS,
Inc., a California  corporation (the  "Company"),  will be held at the BOATRACS,
Inc.  Corporate  office,  10675  Sorrento  Valley  Road,  Suite 200,  San Diego,
California 92121 on May 11, 1999, at 10:00 a.m. for the following purposes:

     1. To elect seven  directors of the Company,  all of whom shall serve until
the  2000  Annual   Meeting  of   Shareholders   (and  until  the  election  and
qualification of their successors);

    2. To consider and act upon a proposal to ratify and approve an amendment to
the  BOATRACS,  Inc. 1996 Stock Option Plan  increasing  the number of available
shares to 4,000,000 and to make additional amendments to conform the Plan to the
requirements of Internal Revenue Code Section 422 and the California  Securities
Rules;

    3. To consider and act upon a change of the Company name to Advanced  Remote
Communication Solutions, Inc.; and

   4. To consider and act upon any other  matters which may properly come before
the Annual Meeting and any adjournment thereof.

         The Board of  Directors  has fixed the close of  business  on March 23,
1999,  as the record date for the  determination  of the holders of Common Stock
entitled to notice of and to vote at the Annual Meeting.

         All shareholders are cordially  invited to attend the Annual Meeting in
person. Regardless of whether you plan to attend the Annual Meeting, please sign
and date the  enclosed  Proxy  and  return it as  promptly  as  possible  in the
enclosed  pre-addressed and postage paid envelope.  The prompt return of Proxies
will ensure a quorum and save the Company expense of further  solicitation.  Any
shareholder  returning the enclosed Proxy may revoke it prior to its exercise by
voting in person at the Annual  Meeting or by filing with the  Secretary  of the
Company a written revocation or duly executed Proxy bearing a later date.

                                            By Order of the Board of Directors,

                                                     Michael Silverman
                                            Chairman
San Diego, California
April 2, 1999

                                 BOATRACS, INC.
                      10675 Sorrento Valley Road, Suite 200
                           San Diego, California 92121

                                 PROXY STATEMENT

                         ANNUAL MEETING OF SHAREHOLDERS
                           TO BE HELD ON MAY 11, 1999


I.  PROXIES

This Proxy Statement is furnished in connection with the solicitation of Proxies
by or on  behalf  of the Board of  Directors  ("Board")  of  BOATRACS,  Inc.,  a
California  corporation  (the  "Company"),  for use at the Company's 1999 Annual
Meeting  of  Shareholders  to be held on May 11,  1999,  at the  BOATRACS,  Inc.
corporate office , 10675 Sorrento Valley Road, Suite 200, San Diego,  California
92121  at 10:00  a.m.,  and at any and all  adjournments  thereof  (the  "Annual
Meeting"),  for the  purposes  set  forth in the  accompanying  Notice of Annual
Meeting of Shareholders.

Any  shareholder  may revoke his or her proxy by  delivering  written  notice of
revocation  to the  Secretary  of the  Company at its  principal  office,  10675
Sorrento Valley Road, Suite 200, San Diego,  California  92121, by a delivery of
proxy bearing a later date, or by attendance at the Annual Meeting and voting in
person.

This Proxy  Statement  and the Annual  Report of the  Company for the year ended
December 31, 1998, will be mailed on or about April 2, 1999, to each shareholder
of record as of the close of business on March 23, 1999.

The  solicitation  of proxies  is being  made by use of the  mails.  The cost of
preparing,  assembling  and mailing  these proxy  materials  will be paid by the
Company. Following the mailing of this Proxy Statement,  directors, officers and
regular  employees  of the  Company  may  solicit  proxies  by mail,  telephone,
telegraph  or  personal  interview.  Such  persons  will  receive no  additional
compensation for such services. Brokerage houses and other nominees, fiduciaries
and custodians  nominally holding shares of the Company's common stock of record
will be requested to forward proxy soliciting  material to the beneficial owners
of the shares, and will be reimbursed by the Company for their reasonable out-of
pocket expenses incurred in forwarding these materials.

When your proxy is returned  properly  signed,  the shares  represented  will be
voted in  accordance  with  your  directions.  Where  specific  choices  are not
indicated,  proxies will be voted in favor of the seven persons  nominated to be
directors  in Proposal  One and in favor of Proposal  Two and Three.  If a proxy
indicates that a shareholder or nominee  abstains from voting or that shares are
not to be voted on a  particular  proposal,  the  shares  will not be counted as
having been voted on that  proposal,  and those  shares will not be reflected in
the final tally of the votes cast with regard to that  proposal,  although  such
shares will be counted as in  attendance  at the Annual  Meeting for purposes of
determining a quorum.  Additionally,  broker  non-votes are not counted as votes
cast on any matter to which they relate.

The  presence  at the Annual  Meeting in person or by proxy of the  holders of a
majority of the shares of Common Stock entitled to vote at the Annual Meeting is
necessary to constitute a quorum for the transaction of business.

Holders  of Common  Stock  are  entitled  to one vote per  share on all  matters
brought  before the Annual  Meeting  and to cumulate  votes for the  election of
directors.  A  shareholder  may not cumulate  votes unless the  shareholder  has
announced  at the Annual  Meeting the  intention  to do so before the voting has
begun, but if any shareholder  makes such an announcement,  all shareholders may
cumulate  votes.  Cumulative  voting rights  entitle a  shareholder  to give one
nominee  as many votes as are equal to the number of  directors  to be  elected,
multiplied  by the number of shares owned by the  shareholder,  or to distribute
his or her votes as the  shareholder  sees fit among two or more nominees on the
same  principle,  up to the total  number of nominees  to be elected.  The seven
nominees  for  director  receiving  the  highest  number of votes at the  Annual
Meeting from the holders of Common Stock will be elected.

An affirmative  vote of a majority of the shares  represented  and voting at the
Annual Meeting is required for approval of Proposal Two and Proposal Three.

Directors and officers  beneficially  own  approximately  64% of the outstanding
shares of Common Stock.  The directors  and officers  have  indicated  that they
intend to vote for each of the  nominees  for  director and in favor of Proposal
Two and Three.  Therefore,  in the absence of cumulative voting, the election of
each nominee as a director is assured. Further, the approval of Proposal Two and
Three is assured.

The Company had  18,852,508  shares of Common  Stock,  no par value (the "Common
Stock"),  outstanding  as of March 23, 1999.  Holders of record of shares of the
Common  Stock at the close of  business on March 23,  1999,  will be entitled to
notice of and to vote at the Annual Meeting and will be entitled to one vote for
each such share.

II.  Securities Ownership of Certain Beneficial Owners and Management

Set forth below is certain information concerning the ownership of the Company's
Common Stock as of March 23, 1999, by (i) all persons known to the Company to be
beneficial  owners of more than 5% of the  outstanding  Common Stock,  (ii) each
director and nominee for director of the Company,  (iii) each executive  officer
of the Company,  and (iv) all executive officers and directors of the Company as
a group.  Except as otherwise  indicated,  and subject to  applicable  community
property and similar  laws,  the persons  named have sole voting and  investment
power with respect to the securities owned by them.

Name and Address           Number of Shares            Percent of
of Shareholder(1)         Beneficially Owned           Outstanding Shares

QUALCOMM Incorporated               1,112,265                   6%
 6455 Lusk Boulevard
 San Diego, CA 92121

Michael Silverman                   3,908,317                   20
Jon Gilbert                         3,786,800 (2)               19
Giles Bateman                         688,158                    6
Luis Maizel                           113,254(3)                 *
Mitchell Lynn                         137,833(4)                 *
Scott Boden                         1,709,575(5)                 9
Annette Friskopp                      507,931(8)                 3
Thomas Bernard                          2,709                    *
Daniel Negroni                         35,800                    *
Charles Drobny, Jr.                   247,000(6)                 1
Peter Carides                          20,000(7)                 *
Curt McLeland                               0                    *
Irene Shinsato                      1,709,575(5)                 9
 All Directors and Executive
Officers as a group
(13 persons)(7)                    12,866,952                   66%
- ---------------------

(1)      The address for all directors and executive officers is 10675 
         Sorrento Valley Road, Suite 200, San Diego, California, 92121.
(2)      Includes  622,053  shares held in a family  trust of which Mr. 
         Gilbert is a trustee. 
(3)      Includes 83,600 shares held by the Maizel Family Trust of which Mr.
         Maizel is a trustee and 15,321 shares held in a retirement plan for 
         which Mr. Maizel is a trustee.
(4)      Includes 20,000 shares held in trust for children for which Mr. Lynn
         disclaims beneficiak ownership.  The number also includes 50,000  
         options  issued  under a Non-Circumvention Agreement dated January 9,
         1996 exercisable at $1.50 per share.
(5)      Includes  244,225 warrants issued in connection with the acquisition
         of Enerdyne Technologies, Inc. in July, 1998.
(6)      240,000 of the shares represent restricted stock granted under an
         agreement.
(7)      Includes shares issuable upon the exercise of options within sixty 
         days of March 23, 1999, as follows: Mr. Bateman, 24,333 shares, 
         Mr. Lynn, 20,333 shares, Ms. Friskopp 130,000 shares,  Mr. Maizel,
         14,333 shares, Mr.Negroni 20,800 shares and Mr. Carides 20,000 shares.
(8)      Ms. Friskopp was a director in 1998.  She resigned in January, 1999.
*        Less than 1%

III. Election Of Directors (Proposal No. 1 on Proxy Card)

The persons  named  below have been  nominated  by  management  for  election as
directors of the Company to serve until the 2000 Annual Meeting of  Shareholders
or until their respective successors are duly elected and qualify.
All nominees,  except for Mr. Bernard, are currently serving as directors of the
Company.

Unless  otherwise  instructed,  the enclosed proxy will be voted for election of
the nominees listed below, except that the persons designated as proxies reserve
full discretion to cast their votes for another person recommended by management
in the  unanticipated  event that any nominee is unable to or declines to serve.
The Board has no reason to believe  that any nominee will be unable or unwilling
to serve.

Name of Nominee            Age              Position with the Company

Michael Silverman          54               Chairman, Director

Jon Gilbert                55               Chief Executive Officer,
                                            President, Director
Giles Bateman              54               Director

Luis Maizel                48               Director

Mitchell Lynn              50               Director

Scott T. Boden             37               Director, Chief Technology Officer,
                                            Enerdyne Technologies, Inc.
Thomas Bernard             67               Director

Mr. Silverman formed BOATRACS, Inc.  in 1990 ("Old BOATRACS") and served as its
Chairman, Chief Executive Officer, President and a director of that company from
its inception until the merger of Old BOATRACS with the Company (the "Merger") 
on January 12, 1995,  at which time he assumed the same positions with the
Company.  Mr. Silverman served the Company as President and Chief Executive 
Officer from the date of the Merger until October, 1997.  He continues to serv
as Chairman.  Mr. Silverman is a Chartered Accountant (South
Africa) and received a Mas ter of Business Administration degree from Stanford
University.

Mr. Gilbert joined the Company as its President, Chief Executive Officer and
director in October, 1997.  Mr. Gilbert was with Maintenance Warehouse the
previous 12 years and held several executive positions, including the title of
Chief Executive Officer. Mr. Gilbert earned a Bachelor of Science degree from 
UCLA.  In addition to being a Certified Public Accountant, he holds a Masters
in Accounting degree.

Mr. Bateman was elected a director of Old BOATRACS in 1994 and became a director
of the Company upon the Merger. Since 1991, Mr. Bateman has served as a director
of Comp USA, a superstore computer retailer, and has served as that company's 
chairman since 1993. Mr. Bateman was a co-founder of The Price Company and
served as Chief Financial Officer and a director of that company from 1976 to
1991 and as vice chairman from 1986 to 1991.  Mr. Bateman holds a Bachelor of
Arts Degree in Jurisprudence from Oxford University,
England and a Master of Business Administration from Harvard Business School.

Mr. Maizel became a director of the Company in October,  1995. For more than the
past five years,  Mr.  Maizel has been  president  of LM Advisors and LM Capital
Management,  money management firms and a board member of several  financial and
commercial corporations in the U.S. and Mexico. He was born and raised in Mexico
City, holds a Bachelor of Science Degree in Mechanical  Electrical  Engineering,
an Master of Science in Industrial  Engineering from the National  University of
Mexico and an Master of Business  Administration  from Harvard  Business  School
where he also was a faculty member.

Mr. Lynn became a director of the Company in June,  1997.  He is also  President
and Managing  Director of Combined  Resources  International,  a manufacturer of
picture frames and other items.  Mr. Lynn was President of The Price Company,  a
San Diego  based  warehouse  club  retailer  from  1990-1993  and  later  senior
executive  vice  president of  Price/Costco  until he resigned in 1994.  He is a
California  Certified  Public  Accountant and holds a Bachelor of Arts degree in
Economics and a Master of Business Administration degree from UCLA.

Mr. Boden was selected as a director on September 2, 1998.  Mr. Boden founded 
Enerdyne Technologies, Inc. in 1984 and was its Chief Executive Officer and 
Chief Technology Officer until July, 1998 when the Company purchased Enerdyne
Technologies, Inc. Prior to founding Enerdyne Technologies, Inc.,  Mr. Boden 
was a designer of video products for Cinematroncis Inc.  Mr. Boden attended San
Diego State University.  He also serves the Company as Chief Technology Officer.

Mr. Bernard has served as Executive Vice President and Director of Leap Wireless
International  since its  formation in September  1998.  Prior to that time,  he
served as a Senior Vice President of Qualcomm  Incorporated  and General Manager
of  Qualcomm  Incorporated's  Infrastructure  Product  Division  from April 1996
through June 1998. Mr. Bernard first joined  Qualcomm  Incorporated in September
1986 as Vice President and General Manager for the OmniTRACS Division.  Prior to
joining  Qualcomm  Incorporated,  Mr.  Bernard was Executive  Vice President and
General Manager of M/A-COM Telecommunications Division, Western Operations.

There is no family  relationship  between  any of the  Company's  directors  and
officers.  There are no arrangements or  understandings  between any director or
executive  officer  and any other  person  pursuant to which any person has been
elected or nominated  as a director or  executive  officer.  All  directors  and
executive officers serve for a term of one year until the next Annual Meeting of
Shareholders.

During the year ended  December 31, 1998,  the Board held six meetings where all
directors  were present  except Ms.  Friskopp who missed three  meetings and Mr.
Maizel  who  missed  one  meeting.  The  Company  presently  has a  Compensation
Committee of the Board consisting of Mitchell Lynn, Chairman, and Giles Bateman.
The Compensation  Committee's primary function is to establish  compensation for
employees  and  effect  promotions.  The Audit  Committee,  consisting  of Giles
Bateman,  Chairman,  Mitchell Lynn and Luis Maizel,  advises the Board as to the
selection of the Company's independent accountants, reviews with the independent
accountants the accounting  principles and practices followed by the Company and
the adequacy thereof,  approves the Company's annual audit and financial results
and any material change thereto and makes recommendations to the Board regarding
such matters.  The Board does not have a standing Nominating  Committee.  During
1998,  the  Compensation  Committee met eight times and the Audit  Committee met
three times.

Executive Officers

In addition to those listed above, the following  individuals are also Executive
Officers:

Name                        Age               Position with the Company

Irene Shinsato              43                President, Enerdyne 
                                              Technologies, Inc.

Daniel W. Negroni, Esq.     33                Vice President, Business
                                              Development and Domestic Sales
Charles J. Drobny, Jr.      48                Vice President, Application
                                              Development
Peter Carides               33                Director of Boatracs Operations,
                                              International Managing Director, 
                                              Boatracs (Europe) B.V.
Curt V. McLeland            35                Chief Financial Officer

Ms. Shinsato has served as President of Enerdyne Technologies, Inc. since 1993. 
Prior to joining Enerdyne Technologies, Inc., Ms
Shinsato owned a public accounting practice, Irene Shinsato, CPA for 9 years
and was previously with Price Waterhouse.  Ms. Shinsato has a Bachelor of
Science degree from San Diego State University and is a Certified Public 
Accountant.

Mr. Negroni joined the Company in October, 1997 as Vice President of Business 
Development and Domestic Sales.  In January 1999, Mr. Negroni became Vice
President, Sales and Marketing of Boatracs' subsidiary Enerdyne Technologies, 
Inc.  Prior to joining the Company, Mr. Negroni was with Seltzer Caplan Wilkins
& McMahon where he focused on business transactional law within the high
technology industry.  From 1993 to 1995, he held the position of  Vice
President, Sales and Marketing, at Dearan Imports.  Mr. Negroni holds a
Bachelor of Science in Business Administration from Boston University and a 
Juris Doctorate degree from Georgetown University Law Center in Washington, D.C.

Mr. Drobny joined the Company in December 1997 as Vice President - Application 
Development when the Company purchased MED Associates Inc. ("MED").  Mr. Drobny
started MED as Management Engineering Design in September, 1993.  Prior to 1993
Mr. Drobny was Vice President and General Manager of Genesis Systems in Bay St.
Louis, a manufacturer of marine information systems.

Mr.  Carides  joined the  Company in March,  1998 as  Managing  Director  of the
Company's wholly owned subsidiary,  Boatracs (Europe) B.V. He became Director of
Boatracs  Operations,  International  in  January,  1999.  Prior to joining  the
Company Mr.  Carides  had four years  technical  and eight  years of  management
responsibilities  in Hong Kong. He held the position of Executive  Director with
Brightpoint China Ltd. from July, 1996 to early 1998 with SafKong Holdings Ltd.,
from 1993 to early 1998 and with Technology  Resources  International  Ltd. from
1994 through 1996.

Mr. McLeland joined the Company in March, 1998 as Chief Financial Officer. Prior
to joining the Company Mr. McLeland held the position as Chief Financial Officer
at a San Diego internet  service  provider.  From 1994 to 1996 Mr. McLeland held
the  position as Chief  Financial  Officer at RJR  Horizons,  Inc.,  a San Diego
company which owns multiple software training franchises.  From 1990 to 1993 Mr.
McLeland was in the audit department of KPMG Peat Marwick, San Diego. He holds a
Bachelor of Science in Accounting from San Diego State University.  Mr. McLeland
resigned from the Company in March, 1999.

IV. Executive Compensation

Executive Compensation

The following table sets forth for the years indicated  certain  compensation of
the Company's  Chairman and the persons  occupying the office of Chief Executive
Officer and the Company's  executive officers of the Company who actually earned
or who were paid on a basis of more than  $100,000 in salary and bonuses in such
years.

SUMMARY COMPENSATION TABLE
                                                                  No. of shares
Annual Compensation                                               underlying
Principal Position    Year      Salary            Bonus           Options

Michael Silverman     1998    $115,368(1)          $0
Chairman, Director    1997    $103,291             $0
                      1996    $100,000             $0

Jon Gilbert           1998    $120,000             $0
President, Chief 
Executive Officer,    1997   $  26,154(2)          $0
Director

Annette Friskopp      1998    $135,921                             50,000
Executive Vice        1997    $130,769          $49,250           250,000
President, Director   1996    $124,961          $31,800

Daniel Negroni        1998    $116,128          $60,000             4,000
Vice President,       1997    $ 19,885 (2)                        100,000
Business Development
and Domestic Sales

Charles Drobny, Jr.   1998    $145,934(3)          $0
Vice President,       1997    $ 25,000
Applications
Development
- ----------------
(1) Mr.  Silverman was the President and Chief Executive Officer of the Company
until October,  1997. He currently  serves as Chairman of the Board at an annual
salary of  $120,000.  The Company  entered  into an  employment  agreement  with
Michael  Silverman,   effective  January  1,  1995.  Under  the  agreement,  Mr.
Silverman's  annual base  compensation  was $100,000 subject to increases at the
Board's discretion. The employment agreement automatically renews for successive
one-year periods unless terminated, and is terminable by the Company at any time
for good cause as defined in the agreement.

(2) Mr.  Gilbert and Mr. Negroni  joined the Company  during  October,  1997. In
connection with the Restricted Stock Purchase  Agreement between the Company and
Jon Gilbert described below under "Certain Transactions",  in the event that the
Board of Directors  terminates the employment of Mr. Gilbert without cause,  Mr.
Gilbert may require the Company to repurchase  up to 2,416,665  shares of Common
Stock for a price equal to the outstanding  principal and interest due under the
Promissory Note entered into in connection with the transaction.

(3) Mr. Drobny became Vice President effective November 1, 1998 as a consequence
of the acquisition of his company,  MED Associates,  Inc. In connection with the
Company's  purchase of MED  Associates,  Inc.  ("MED") in  November,  1997,  the
Company  entered into a four-year  employment  agreement with Charles J. Drobny,
Jr., MED's founder. Under the terms of the employment agreement, Mr. Drobny will
be paid base compensation of $150,000 for two years commencing  November 1, 1997
and  $180,000  for the  following  two years.  Mr.  Drobny may  receive,  at his
election,  up to $30,000 per year in the form of shares of the Company's  Common
Stock for the first two years,  and up to $60,000 per year in the form of shares
of common  stock for the second  two years.  The  salary  shown  above  includes
$30,000 which Mr. Drobny has deferred in salary to purchase Company stock.

The Company has entered into an Addendum to Stock Issuance/Employment  Agreement
effective  January 21, 1991, and amended July 1995,  whereby Annette  Friskopp's
salary  from April to  December,  1995 was  $108,000  and after  December,  1995
increased to $120,000 per annum. In addition, beginning January 1995, she became
entitled  to a bonus  for  each  unit  sold to an end  user.  In  addition,  the
agreement granted Ms. Friskopp an option to acquire 100,000 additional shares of
common stock,  which has been treated as being a grant pursuant to the Company's
1996 Stock  Option Plan at a price equal to the fair market value of such shares
on the date of grant.  In December,  1996 Ms.  Friskopp was awarded an option to
purchase  150,000  shares of the Company's  common stock at an exercise price of
$1.125 per share.  The  options  will vest 20%  annually  over five  years.  The
agreement was terminated on December 31, 1997.
Ms. Friskopp resigned as an officer and director in January, 1999.

The following table sets forth the information  concerning  individual grants of
stock  options  and  appreciation  rights  during  the last  fiscal  year to the
Company's chief executive officer and the executive  officers of the Company who
earned more than $100,000 last year.

OPTION GRANTS IN LAST FISCAL YEAR
(Individual Grants)                   Percent Of
                       Number of      Total Options
                       Securities     Granted
                       Underlying     To Employees     Exercise Or 
                       Options        In Fiscal Year   Base Price  Expiration
Name                   Granted (#)                     ($/Share)

Michael Silverman         -----           -----                         -----
Jon Gilbert               -----           -----                         -----
Annette Friskopp         15,000            2%             $2.38          2005
                         35,000            5%             $2.94          2005
Daniel Negroni            4,000            1%             $2.38          2005
Charles Drobny, Jr.       -----           -----                         -----

The following table sets forth the information concerning each exercise of stock
options during the last fiscal year by each of Company's chief executive officer
and the  executive  officers of the Company who earned more than  $100,000 last
year, and the fiscal year value of unexercised options.

AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR
AND FY-END OPTION VALUES

                                           Number Of
                                           Securities         Value Of
                                           Underlying         Unexercised
                      Shares               Unexercised        In-The-Money
                      Acquired             Options            Options
                      On         Value     At FY-End (#)      At FY-End($)
                      Exercise   Realized  Exercisable/       Exercisable/
Name                  (#)          ($)     Unexercisable      Unexercisable

Michael Silverman       -----      -----   -----               -----
Jon Gilbert             -----      -----   -----               -----
Annette Friskopp        -----       N/A    100,000/200,000    $117,500/176,250
Daniel Negroni          -----      -----    20,000/84,000      $20,000/80,000
Charles Drobny, Jr.     -----      -----   -----               -----

Compensation Committee Interlock and Insider Participation

During  fiscal  year 1998,  Michael  Silverman  and Jon  Gilbert,  officers  and
directors of the Company,  attended  Compensation  Committee meetings concerning
executive officer compensation.

Director Compensation

Through May 1998,  non-employee  directors of the Company received $500 for each
Board meeting they  attended.  Non-employee  directors  currently  receive stock
options  to  purchase   Common  Stock  as   compensation   for  Board  meetings.
Non-employee  directors Messrs.  Bateman and Maizel have received 10,000 options
at an exercise price of $1.00 each in April, 1996 and options to purchase 10,000
shares at an  exercise  price of $1.25  per share in  February  1997.  Mr.  Lynn
received  10,000  options at an exercise  price of $1.19 per share in June 1997.
Messrs.  Bateman and Lynn received 10,000 Common Stock Purchase  Warrants,  each
exercisable at $2.44 per share in March 1998. Messrs.  Bateman,  Maizel and Lynn
each received options to purchase 25,000 shares of Common Stock each exercisable
at $4.63 per share in May 1998.

Compliance with Section 16(a) of the Securities Exchange Act of 1934.

Section  16(a) of the  Securities  Exchange Act of 1934  requires the  Company's
executive officers and directors, and persons who beneficially own more than 10%
of the  Company's  stock,  to file initial  reports of ownership  and reports of
changes in ownership  with the  Securities  and Exchange  Commission.  Executive
officers,  directors  and greater  than 10%  beneficial  owners are  required by
applicable  regulations  to furnish the Company with copies of all Section 16(a)
forms they file.

Based solely upon a review of the copies of such forms  furnished to the Company
and information involving securities transactions of which the Company is aware,
the Company  believes that during the fiscal year ending  December 31, 1998, all
its executive officers,  directors and greater than 10% beneficial  shareholders
complied with Section 16(a) filing requirements.

V.  Certain Transactions

The  Company  has  a  number  of   contractual   relationships   with  QUALCOMM,
Incorporated, which owns 1,112,265 shares (6%) of the outstanding Common Stock.

The Company entered into a License  Agreement and  Distribution  Agreement dated
June 13, 1990,  which grants the Company certain  exclusive rights to distribute
QUALCOMM's OmniTRACS System for marine applications in the coastal waters of the
United  States and the  Atlantic and Pacific  Oceans.  This  agreement  has been
amended from time to time.  The  agreement has an initial term of five years and
three five-year  extensions.  The Company exercised its first extension in 1995,
which will continue until 2000.

The Company also entered into a License Agreement with QUALCOMM in March,  1995,
which  requires  QUALCOMM to pay to the  Company a per copy  royalty for certain
interface  software  developed and owned by the Company as an enhancement to the
OmniTRACS  System.  The License  Agreement  terminates  upon  termination of the
License and Distribution Agreement.

In March,  1997, the Company's wholly owned  subsidiary,  Boatracs (Europe) B.V.
signed a five year  Sub-Service  Provider  Agreement  with ALCATEL  QUALCOMM,  a
French joint venture  company of the ALCATEL  Group and QUALCOMM.  The agreement
appoints  Boatracs  (Europe) B.V. as the maritime  distributor  of the OmniTRACS
system in  certain  European  countries  under a similar  basis  upon  which the
BOATRACS operates in the United States.

In October, 1997, the Company entered into a Restricted Stock Purchase Agreement
with Jon Gilbert,  the Company's current President and Chief Executive  Officer,
and a related  Promissory Note and Pledge Agreement.  Under the Restricted Stock
Purchase  Agreement,  Mr. Gilbert purchased 2,900,000 shares of Common Stock for
$2,320,000 ($.80 per share). Mr. Gilbert paid $389,085 in cash and the remaining
$l,930,915  by a  promissory  note  bearing  interest  at a rate of  5.77%.  The
promissory  note is secured by 2,416,665 of the purchased  shares.  The note was
payable  in four  semi-annual  installments  of  $420,241,  with  all  remaining
principal and accrued interest due April 15, 2000. During June 1998 the note and
accrued  interest  was  purchased  by an outside  party at a discount of $44,274
which was  recorded as a deduction to the Common Stock  originally  issued.  See
also "Executive Compensation."

Effective November 1, 1997, the Company purchased certain assets and liabilities
of MED for $500,000 cash, and 300,000 shares of Common Stock.  The stock payment
was  subject  to an option in favor of the  Company  exercisable  if MED did not
achieve a certain  target  earnings  level for the 1998 fiscal year  whereby the
Company  may  repurchase  for a nominal  price one share of such stock for every
dollar by which MED earnings fall short of the target.  In December,  1998,  the
agreement  was amended and the cash payable still  outstanding  in the amount of
$250,000  was  reduced to  $30,000.  In  addition,  the shares to be issued were
reduced to 240,000. Charles J. Drobny, Jr., MED's founder, became Vice President
of Applications Development of the Company at the time of the acquisition.

VI.  Approval of Amendments to 1996 Stock Option Plan (Proposal No. 2 on Proxy
     Card)

The Board has approved an  amendment  to the 1996 Stock Option Plan  ("Plan") to
increase  the shares  authorized  under the Plan to  4,000,000  shares of Common
Stock.  Prior to this amendment there were 2,000,000 shares authorized under the
Plan. In addition,  the Board adopted  amendments  to the Plan  clarifying  that
options could be granted only to employees,  officers, directors and consultants
of the  Company or its  subsidiaries.  Further,  the Plan was amended to provide
that any option granted to a shareholder  holding 10% or more of the outstanding
Common  Stock  must be granted at an  exercise  price  equal to 110% of the fair
market value of the shares.  The Plan was further amended to comply with certain
time limitations upon grant and exercise of options pursuant to the requirements
of Section 422 of the Internal  Revenue Code, as amended,  of 1986. A summary of
the Plan follows,  but shareholders should read the entire Plan attached to this
Proxy Statement as Appendix I for a full understanding of the Plan.

Options and Shares

Shares purchased upon exercise of options granted under the Plan may be composed
of authorized and unissued  shares.  If an option granted under the Plan expires
or is otherwise terminated prior to exercise,  the shares subject to that option
will become  available  for future  grants  under the Plan.  The total number of
shares  subject to  outstanding  options under the Plan or under any other stock
option or  similar  plan may not  exceed  30% of the  total  number of shares of
Common Stock outstanding on the date of the grant of any option under the Plan.

Administration

The Plan is administered by the Board of Directors or by a committee  designated
by the Board  consisting of at least two directors who are not also employees of
the Company (the "Committee"). The Committee currently consists of Giles Bateman
and Mitchell Lynn. The structure of the Committee may be changed as necessary to
comply with any future  changes in tax or securities  laws or  regulations.  For
convenience,  the following summary refers to the Committee as the administering
body under the Plan,  although  the Plan may be  administered  by the Board as a
whole. The Committee has authority consistent with the provisions of the Plan to
establish  the  terms of the  stock  options  granted,  to  establish  rules and
regulations  appropriate  for  Plan  administration  and to  interpret  and make
determinations under the Plan.

Stock Options and Participation

Options issued under the Plan may be either incentive stock options  ("Incentive
Options")  under  Section 422 of the Internal  Revenue Code of 1986,  as amended
(the "Code"),  or non-qualified  stock options  ("Non-Qualified  Options").  The
differences  between  these  options are  discussed  below.  Persons who receive
options  pursuant  to  the  Plan  are  referred  to  as  either  "optionees"  or
"grantees."

The  Committee  may grant  Non-Qualified  Options  to any  person who has or has
agreed to have any of the  following  relationships  ("Relationships")  with the
Company or any of its subsidiaries:  officer, director,  employee or consultant.
The Committee may grant Incentive Options only to employees  (including officers
or directors who are employees) of the Company or any of its  subsidiaries.  The
amendment of the Plan may benefit the current  executive  officers and directors
of the Company;  however,  because of the discretionary  nature of the Plan, the
Company  cannot at this time  determine the amount of benefit to any  particular
executive  officer or director or to all  executive  officers and directors as a
group.

Incentive  Options  granted under the Plan will expire ten years after the grant
date.  Options may terminate prior to their  expiration date if the Relationship
between the optionee and the Company  terminates  prior to the  expiration  date
(see below).  Incentive  Options and Non Qualified Options issued to persons who
own more than 10% of the outstanding  Common Stock of the Company on the date of
the grant will expire 5 years after the grant date.

All options granted under the Plan will be exercisable as the Committee or Board
determines. Despite the preceding sentence, all options will be exercisable at a
minimum as  follows:  20% percent of the shares  subject to the option  ("option
shares") may be purchased beginning on the first anniversary after the grant and
an additional  20% of the shares will become  available for purchase  after each
successive  one  year  anniversary.  Accordingly,  all  option  shares  will  be
available  for purchase (to the extent not  previously  purchased)  on the fifth
anniversary of the grant date.  Once an option is  exercisable,  an optionee may
exercise all or any part of the option which is then exercisable.

The exercise price of Incentive Options must be at least 100% of the fair market
value of the Common Stock on the grant date, or at least 110% of the fair market
value in the case of  Incentive  Options  granted to a person who owns more than
10% of the outstanding  Common Stock. The purchase price for shares subject to a
Non-Qualified Option must be at least 85% of the fair market value of the Common
Stock on the grant date. Non Qualified  options granted to a person holding more
than 10% of the outstanding  Common Stock must have a purchase price of at least
110% of the fair market  value of the Common  Stock on the grant date. A grantee
exercising  a Non  Qualified  Option  must  pay  the  exercise  price  plus  any
withholding tax due at the time of exercise.  This amount may be paid in cash or
in shares of the Common  Stock  valued at the then  current fair market value of
such shares, or a combination of both. The Committee may in its discretion allow
other forms of payment.

Options  granted under the Plan may not be transferred  or assigned  except upon
the  death  of the  optionee,  by  will  or by the  laws of  descent.  Upon  the
termination of an optionee's  Relationship with the Company by reason other than
death  or  disability,  his or her  Non  Qualified  Options  will  automatically
terminate  30 days  from  the date the  Relationship  terminates  and his or her
Incentive  Options will  terminate  three  months from the date of  termination.
During the applicable  post-termination period, the optionee may exercise his or
her  options  to  the  extent  the  options  were  exercisable  on the  date  of
termination of the Relationship.  The optionee will also be entitled to exercise
a percentage  of the options that are not yet  exercisable  as  determined  by a
formula  based on the length of service  during  each  period  that the  options
become exercisable.

Unless the Committee expressly determines  otherwise,  any Non Qualified Options
granted to a person whose  Relationship with the Company  terminates  because of
death  or  disability  will  terminate  six  months  after  the date of death or
disability. Any Incentive Option will terminate one year after the date of death
or  disability.  (If an option would have expired  before the expiration of such
period,  it will terminate on its natural  expiration date.) The options will be
exercisable  during  the  applicable  exercise  period to the  extent  they were
exercisable  on the date of death  or  disability.  The  optionee  will  also be
entitled to exercise a percentage of the options that are not yet exercisable as
determined by a formula  based on the length of service  during each period that
the options become exercisable.  If the Relationship is terminated by death, the
option may be exercised by the heir or devisee of the optionee.

These and other terms and  conditions  of the options  will be  reflected  in an
agreement  entered  into  between the  Company  and the  optionee at the time an
option is granted to the optionee.

Term and Amendment

The Plan became effective  December 7, 1995 and will terminate  February 8, 2004
or when all shares available under the Plan have been distributed.  The Board of
Directors may modify or discontinue  the Plan at any time,  but no  modification
may adversely  affect any  outstanding  grant unless the recipient of that grant
gives written  consent.  Amendments  which (i) materially  increase the benefits
accruing to  participants  under the Plan, (ii) increase the number of shares of
Common Stock which may be issued under the Plan, or (iii) materially  modify the
requirements  as to  eligibility  for  participation  in the Plan,  will require
shareholder  approval unless such changes are required to comply with federal or
state securities laws.

Adjustments

The number of shares  available  under the Plan and the number and the  exercise
price of shares underlying outstanding options will be adjusted appropriately in
the event of a merger,  reorganization,  reclassification,  stock  split,  stock
dividend or other similar transaction which affects all shares of Common Stock.

If the  Company  dissolves,  sells all of its  assets or  mergers  with  another
company  where  the  Company  is not the  surviving  company,  the Plan and each
outstanding  option will  terminate.  In that event,  the surviving or acquiring
company may at its election  issue to the  optionees  under the Plan  comparable
replacement  options to purchase  common  stock in the  surviving  or  acquiring
company.  If the  surviving  or  acquiring  company  does not issue  replacement
options,  all  options  then  outstanding  under  the  Plan  will  become  fully
exercisable  immediately  before the effective date of the transaction,  even if
those options would not have otherwise been fully  exercisable as of the date of
the transaction.

Certain Federal Income Tax Consequences

The following is a summary of the federal  income tax  consequences  to both the
grantee and the Company of options granted under the Plan. Because tax laws vary
in their applicability to different individuals, and because they are subject to
change at any time, the Company urges persons  granted options under the Plan to
seek advice from their own tax advisers concerning the options.

Incentive Options. The Company believes that Incentive Options granted under the
Plan will qualify as incentive  stock options under Section 422 of the Code. The
following  summarizes  the  principal  federal  income tax aspects of  Incentive
Options.

In  general,  an optionee  does not  recognize  income at the time an  Incentive
Option is granted or at the time it is exercised.  If the optionee does not sell
or otherwise dispose of the shares received upon exercise of an Incentive Option
either within two years from the grant date or one year from the exercise  date,
the optionee will recognize  capital gain or loss when the optionee  disposes of
the  shares.  The gain or loss will be measured  by the  difference  between the
exercise price and the sale price of the shares.

If the  optionee  sells or  disposes  of shares  acquired  upon  exercise  of an
Incentive  Option  before the  expiration  of either of the one-year or two-year
holding periods described above (a "disqualifying disposition"),  the difference
between the  exercise  price and the fair market value of the shares at the time
of exercise will be taxable as ordinary income in the year the shares were sold.
In most  situations,  a  disqualifying  disposition of the shares  acquired upon
exercise  causes part of the profit  realized  upon sale to be taxed as ordinary
income rather than as capital gain. For most taxpayers,  this means a higher tax
rate and a loss of the ability to offset some of the gain against  other capital
losses.

The Company will not be allowed a deduction  for federal  income tax purposes at
the time of the grant or  exercise  of an  Incentive  Option.  To the extent any
optionee recognizes ordinary income as a result of a disqualifying  disposition,
the Company will generally be entitled to an offsetting  deduction of the amount
recognized by the employee as ordinary income.

Non-Qualified  Options.  An  optionee  does not  recognize  income at the time a
Non-Qualified  Option is granted.  An optionee will recognize ordinary income at
the time he or she exercises a Non-Qualified  Option. The income recognized will
be equal to the difference  between the exercise price and the fair market value
of the shares on the exercise date.

The Company  generally will be entitled to an offsetting income tax deduction in
the  year  an  optionee  recognizes  ordinary  income  from  the  exercise  of a
Non-Qualified Option.

When an optionee  sells  Common  Stock  acquired by exercise of a  Non-Qualified
Option,  he or she will recognize a capital gain or loss equal to the difference
between the sale price of the stock and the option exercise price.

The Company will in most cases have a legal obligation to withhold for taxes due
upon the exercise of a Non-Qualified Option by an employee of the Company. Where
withholding obligations apply, the Company will require the optionee to pay such
amounts on  exercise,  or the Company may at its option  offset the  withholding
amount against salary or other payments due to the optionee.

Vote Required

Approval of the  amendment  to the Plan  requires  the  affirmative  vote of the
holders of at least a majority of the  outstanding  shares of Common Stock which
are present or represented by proxy at the Annual Meeting.

Board Recommendation

Because  each  of the  directors  may  receive  options  under  the  Plan if the
shareholders  approve  the  amendment  to the Plan,  the Board has a conflict of
interest in connection with the Plan amendment.  Nonetheless, the Board believes
that  adoption of the  amendment  to the Plan will help the Company  attract and
retain qualified  individuals to serve as employees,  consultants,  officers and
directors of the Company.  The Board also believes the  amendment  will give the
Board  and  the  Compensation  Committee  additional  flexibility  to  structure
compensation  packages to better align the financial  interests of the Company's
directors,  officers,  consultants  and  employees  with those of the  Company's
shareholders.  Accordingly,  the  Board  unanimously  recommends  a vote FOR the
approval of the amendment to the Plan.

VII. Approval of Name Change to Advanced Remote Communications Solutions, Inc.
    (Proposal No. 3 on Proxy Card).

The Board has approved an amendment to the Company's  Articles of  Incorporation
changing  the   Company's   name  from   BOATRACS,   Inc.  to  Advanced   Remote
Communications Solutions, Inc. As the result of recent acquisitions, the Company
has broadened its focus beyond the initial focus of maritime communications. The
Board has determined  that the name change would be more properly  reflective of
the Company's present and prospective  activities.  Approval of the amendment to
the Company's  Articles of  Incorporation  requires the  affirmative  vote of at
least a majority of the outstanding shares of Common Stock. The Board recommends
a vote FOR the approval of the amendment.

VIII.  Date for Submission of Shareholder Proposals - For 2000 Annual Meeting
Any proposal  relating to a proper  subject  which a  shareholder  may intend to
present for action at the 2000  Annual  Meeting of  Shareholders  and which such
shareholder  may wish to have included in the Company's proxy materials for such
meeting must, in accordance with the provisions of Rule 14a-8  promulgated under
the  Securities  Exchange Act of 1934, be received in proper form by the Company
at its  principal  executive  office not later  than  December  1,  1999.  It is
suggested that any such proposal be submitted by certified mail,  return receipt
requested.

IX. Other Business
Management  is not aware of any matters to come before the Annual  Meeting other
than those stated in this Proxy Statement. However, inasmuch as matters of which
management  is  not  now  aware  may  come  before  the  Annual  Meeting  or any
adjournment thereof, the proxies confer discretionary  authority with respect to
acting  thereon,  and the persons named in such proxies intend to vote, act, and
consent in  accordance  with their best  judgment  with  respect  thereto.  Upon
receipt of such proxies (in the form  enclosed and properly  signed) in time for
voting, the shares represented thereby will be voted as indicated thereon and in
this Proxy Statement.

         By Order of the Board of Directors,
         MICHAEL SILVERMAN, Chairman of the Board
         San Diego, California
         April 2, 1999



APPENDIX I
Dated: March 23, 1999

BOATRACS, INC.
1996 STOCK OPTION PLAN
(as amended March 24, 1997 and March 20, 1998)

1.  Purposes of the Plan.

The  Boatracs,  Inc.  1996 Stock Option Plan (the "Plan") is intended to promote
the interests of Boatracs,  Inc., a California  corporation (the "Company"),  by
providing  a method  whereby  (i)  employees  of the  Company  (or its parent or
subsidiary  corporations)  responsible for the management,  growth and financial
success of the  Company  (or its parent or  subsidiary  corporations),  and (ii)
officers, directors and consultants who provide valuable services to the Company
(or  its  parent  or  subsidiary  corporations),   as  determined  by  the  Plan
Administrator,  may be offered  incentives and rewards which will encourage them
to acquire a  proprietary  interest,  or otherwise  increase  their  proprietary
interest,  in the Company and continue to render services to the Company (or its
parent or subsidiary corporations).

2. Administration of the Plan.

(a) The Plan shall be  administered  by the  Company's  Board of Directors  (the
"Board") or, to the extent provided by the Board, a committee (the  "Committee")
appointed by the Board,  which shall  consist of not less than two  non-employee
directors (as such term is defined in Rule 16b-3, or any successor  rule,  under
the  Securities  Exchange  Act of 1934),  who shall serve at the pleasure of the
Board;  provided,  however,  that the Plan may be administered by the Board. For
purposes of the Plan, the term "Plan  Administrator" shall mean the Board, or if
the Board delegates  responsibility  for any matter to the Committee.  The Board
may alter the Plan  administration so that the Plan administration is structured
to comply with the rules governing a discretionary plan under Rule 16b-3.

(b) Subject to the  provisions of the Plan,  the Plan  Administrator  shall have
full power and authority to select the Optionees (as defined in Section 3) to be
granted the options  under the Plan,  and to determine  (i) whether each granted
option is to be an  incentive  stock option  ("Incentive  Stock  Option")  which
satisfies the  requirements of Section 422 of the Internal Revenue Code of 1986,
as amended (the  "Internal  Revenue Code") or a  non-statutory  Stock Option not
intended to meet such  requirements,  (ii) the number of shares to be subject to
such  option;  (iii)  the  exercise  prices  of such  shares,  (iv) the terms of
exercise,  (v) the expiration dates and (vi) all other terms and conditions upon
which such option may be exercised.  The Plan Administrator  shall have the full
power and authority  (subject to the  provisions of the Plan) to establish  such
rules and regulations as it may deem  appropriate for the proper  administration
of  the  Plan  and  to  make  such   determinations   under,   and  issue   such
interpretations of, the Plan and any outstanding option as it may deem necessary
or advisable.  Decisions of the Plan Administrator shall be final and binding on
all  parties  who have an interest  in the Plan or any  outstanding  option.  No
person  acting  under  this  subsection  shall be held  liable for any action or
determination  made in good faith with respect to the Plan or any option granted
under the Plan.

(c) The Company shall indemnify and hold harmless each Committee member and each
director of the Company,  and the estate and heirs of such  Committee  member or
director, against all claims, liabilities, expenses, penalties, damages or other
pecuniary losses, including legal fees, which such Committee member or director,
his  or  her   estate  or  heirs   may   suffer  as  a  result  of  his  or  her
responsibilities,  obligations  or duties in  connection  with the Plan,  to the
extent that insurance, if any, does not cover the payment of such items.

3.  Eligibility for Option Grants.

The persons eligible to receive option grants pursuant to the Plan ("Optionees")
are as follows:

(a)  Employees  of the  Company  (or  its  parent  or  subsidiary  corporations,
including  officers and  directors  who are  employees)  who  contribute  to the
success and growth of the Company (or its parent or subsidiary  corporations) or
who may reasonably be anticipated to contribute to the future success and growth
of the Company (or its parent or subsidiary corporations); and

(b) Directors,  officers and  consultants who provide  valuable  services to the
Company (or its parent or subsidiary corporations).

4. Stock Subject to the Plan.

(a) The  stock  issuable  under  the  Plan  shall  be  shares  of the  Company's
authorized  but unissued or reacquired  common stock (the "Common  Stock").  The
aggregate  number of shares  which may be issued under the Plan shall not exceed
4,000,000  shares of Common Stock. The total number of shares issuable under the
Plan shall be subject to  adjustment  from time to time in  accordance  with the
provisions of this Section 4.

(b) Should an option be terminated  for any reason  without  being  exercised or
surrendered in whole or in part, the shares subject to the portion of the option
not so exercised or surrendered  shall be available for subsequent option grants
under the Plan.

(c) In the event that the outstanding  shares of Common Stock issuable under the
Plan as a class are increased or  decreased,  or changed into or exchanged for a
different  number or kind of shares or securities,  as a result of any Corporate
Transactions (as defined in Section 7), stock splits,  stock  dividends,  or the
like  affecting  the  outstanding  Common  Stock  as a class,  then  appropriate
adjustments  shall be made to the aggregate  number of shares issuable under the
Plan and to the number of shares and price per share of the Common Stock subject
to each outstanding  option,  in order to prevent the dilution or enlargement of
benefits under such outstanding options.

5. Terms and Conditions of Options.

Options  granted  pursuant to the Plan shall be authorized by action of the Plan
Administrator  and  may,  at the  Plan  Administrator's  discretion,  be  either
Incentive Stock Options or Non-Qualified Stock Options.  Individuals who are not
employees of the Company or its parent or  subsidiary  corporations  may only be
granted  Non-Qualified Stock Options.  Each granted option shall be evidenced by
one or more written  instruments  in a form approved by the Plan  Administrator;
provided,  however,  that each such instrument shall comply with and incorporate
the terms and conditions specified in this Section 5.

(a)  Option Price.

(1) Subject to sub  paragraph  (a) (2),  the option price per share (the "Option
Price"),  (a) with respect to a  Non-Qualified  Stock  Option,  shall be between
eighty-five  percent  (85%) and one  hundred  percent  (100%) of the fair market
value of a share of Common Stock on the date of the option grant,  as determined
by the  Company  on a case by case basis and (b) with  respect  to an  Incentive
Stock Option,  be one hundred percent (100%) of the fair market value of a share
of Common Stock on the date of the option grant.

(2) 10%  Shareholder.  If any Optionee under the Plan on the date of grant of an
Incentive  Stock Option or Non Qualified  Stock Option is the owner of stock (as
determined  under Section  424(d) of the Internal  Revenue Code)  possessing ten
percent (10%) or more of the total combined voting power of all classes of stock
of the  Company  or any one of its  parent or  subsidiary  corporations  (a "10%
Shareholder"),  then the option price per share acquired pursuant to exercise of
the Incentive  Stock Option or Non Qualified Stock Option shall not be less than
one hundred and ten percent (110%) of the fair market value of a share of Common
Stock on the date of the option grant.

(3) The option price shall become  immediately  due upon  exercise of the option
and shall, subject to the provisions of the instrument  evidencing the grant, be
payable in one of the alternative forms specified below:

(i) full payment  in  cash or cash equivalents; or

(ii) full  payment in shares of Common  Stock  having a fair market value on the
Exercise Date (as defined below) in an amount equal to the option price; or

(iii) a combination of shares of Common Stock valued at fair market value on the
Exercise Date and cash or cash equivalents, equal in the aggregate to the option
price; or

(iv) any other form of consideration as the Plan Administrator may approve.

For purposes of this Section 5(a)(3),  the Exercise Date shall be the first date
on which the Company shall have received both written  notice of the exercise of
the option and payment of the option  price for the  purchased  shares of Common
Stock.

(4) For all valuation  purposes under the Plan, the fair market value of a share
of Common Stock shall be determined in accordance with the following provisions:

(i) If the Common  Stock is not at the time listed or admitted to trading on any
stock  exchange but is traded in the  over-the-counter  market,  the fair market
value shall be the mean  between the highest bid and lowest asked prices (or, if
such information is available, the closing selling price) of one share of Common
Stock  in the  over-the-counter  market,  as such  prices  are  reported  by the
National  Association  of  Securities  Dealers  through its NASDAQ system or any
successor  system, on the date of the option grant or Exercise Date, as the case
may be. If there are no reported bid and asked prices (or closing selling price)
for the Common Stock on the date in question,  then the mean between the highest
bid price and lowest  asked  price (or the  closing  selling  price) on the last
preceding date for which such quotations  exist shall be  determinative  of fair
market value.

(ii) If the Common  Stock is at the time  listed or  admitted  to trading on any
stock exchange, then the fair market value shall be the closing selling price of
one  share of  Common  Stock  on the  date in  question  on the  stock  exchange
determined  by the Plan  Administrator  to be the primary  market for the Common
Stock, as such price is officially  quoted in the composite tape of transactions
on such exchange.  If there is no reported sale of Common Stock on such exchange
on the date in question, then the fair market value shall be the closing selling
price on the  exchange  on the last  preceding  date for  which  such  quotation
exists.

(iii) If the Common Stock at the time is neither  listed nor admitted to trading
on any stock exchange nor traded in the  over-the-counter  market, then the fair
market value shall be determined by the Plan  Administrator  in accordance  with
Section 260.140.50 of the California Code of Regulations or any successor rule.

(b) Option Period.

The term of each Non  Qualified  Option shall  commence on the date of grant and
shall be for a term not  exceeding  ten (10) years.  The term of each  Incentive
Option shall be ten (10) years. Despite the preceeding sentence, if an Incentive
Stock  Option or Non  Qualified  Stock  Option is  granted to an  Optionee  who,
immediately  before the grant of the  Incentive  Stock  Option or Non  Qualified
Stock Option owns stock  representing  more than ten percent  (10%) of the total
combined  voting  power of all  classes of stock of the Company or its parent or
subsidiary  corporations,  the exercise period specified in the option agreement
for which the Incentive Stock Option or Non Qualified Stock Option thereunder is
granted,  shall not exceed  five years from the date of grant.  Subject to other
provisions of the Plan,  each option shall be exercisable  during its term as to
at least twenty percent (20%) of the option shares during the twelve (12) months
beginning  on the first  anniversary  of the date of grant,  and twenty  percent
(20%) thereafter  during each of the four (4) next successive  twelve (12) month
periods.  Additionally,  if an Optionee shall not in any period  purchase all of
the option  shares  which the  Optionee is entitled to purchase in such  period,
then the Optionee  may  purchase all or any part of such shares  subject to this
Agreement  at any time after the end of such period and prior to the  expiration
of the option.  Despite the foregoing,  the Board may at its discretion  provide
for earlier exercisability.

(c) Effect of Termination.

(1) Subject to the other provisions of the Plan,  should an Optionee cease to be
an  employee,  officer,  director  or  consultant  of the  Company or any of its
subsidiaries  for death or permanent  disability as defined in Section 22 (e)(3)
of the Internal  Revenue Code, then any option or options granted under the Plan
to such  Optionee  and  outstanding  on the  date of  termination  shall  remain
exercisable  for a period  not to exceed  six (6)  months  from the date of such
termination in the case of Non Qualified  Stock Options and one year in the case
of Incentive Stock Options,  the specific amount of time to be determined at the
time of granting  the option;  provided,  however,  that under no  circumstances
shall such options be exercisable  after the expiration  date of the option term
specified in the  instrument  evidencing  the option  grant.  If the  optionee's
relationship  with the  Company  terminates  for  reasons  other  than  death or
disability,  the Board may fix a such shorter period of exercisability following
the  termination  date,  as  determined  by the  Company at the time of original
grant, but in no event less than thirty (30) days in the case of a Non Qualified
Stock Option or three (3) months in the case of an Incentive Stock Option.  Each
such option  shall,  during such  period,  be  exercisable  to the extent of the
number of shares (if any) for which the option is exercisable on the termination
date (the "Vested  Shares"),  and to the extent that on the termination date the
number of shares (if any) for which the option is not  exercisable  will  become
exercisable  within the following year, the Optionee may exercise the option for
a percentage of such shares based on the following fraction: the numerator shall
be the number of days from the last  anniversary date of the grant of the option
to the termination date and the denominator shall be the number of days from the
last anniversary date of the grant of the option to the next anniversary date of
the grant of the option.  Upon the expiration of such  applicable  period or (if
earlier) upon the expiration of the option term, the option shall  terminate and
cease to be exercisable.

(2)  Notwithstanding  subsection (c)(1) above, the Plan Administrator shall have
complete discretion,  exercisable either at the time the option is granted or at
the  termination  date to provide  that  options  held by such  Optionee  may be
exercised not only with respect to Vested Shares as of the termination date, but
also with respect to one or more subsequent installments of shares for which the
option would otherwise have become exercisable.

(3) For purposes of the Plan, the Optionee shall be deemed to be a consultant of
the Company for so long as the Optionee renders periodic services to the Company
or one or more of its parent or subsidiary corporations.

(d) No Employment or Service Contract. Nothing in the Plan shall confer upon the
Optionee  any right to  continue in the service of the Company (or any parent or
subsidiary  corporation of the Company  employing or retaining the Optionee) for
any period of specific  duration or interfere with or otherwise  restrict in any
way the rights of the Company (or any parent or  subsidiary  corporation  of the
Company  employing or  retaining  Optionee) or the  Optionee,  to terminate  the
service  provider  status of  Optionee  at any time for any  reason or no reason
whatsoever, with or without cause.

(e)  Shareholder  Rights.  An  Optionee  shall  have  none  of the  rights  of a
shareholder  with  respect  to any  shares  covered  by the  option  until  such
individual shall have duly exercised the option and paid the option price.

6.  Exercise of Options.

(a) Each Option may be exercised  in whole or in part (but not as to  fractional
shares) by delivering it for surrender or endorsement to the Company,  attention
of the Corporate  Secretary,  at the Company's  principal office,  together with
payment of the Exercise  Price and an executed  Notice and Agreement of Exercise
in the form prescribed by the Company.

(b) Exercise of each Option is conditioned upon the agreement of the Optionee to
the terms and  conditions  of this Plan and of such Option as  evidenced  by the
Optionee's  execution  and  delivery of a Notice and  Agreement of Exercise in a
form to be  determined  by the  Committee  in its  discretion.  Such  Notice and
Agreement of Exercise shall set forth the agreement of the Optionee that: (a) no
Option  Shares  will  be sold  or  otherwise  distributed  in  violation  of the
Securities Act of 1933 (the "Securities Act") or any other applicable federal or
state securities  laws, (b) each Option Share  certificate may be imprinted with
legends  reflecting any applicable federal and state securities law restrictions
and conditions, (c) the Company may comply with said securities law restrictions
and issue "stop  transfer"  instructions  to its  Transfer  Agent and  Registrar
without liability, (d) each Optionee will timely file all reports required under
federal  securities  laws, and (e) each Optionee will report all sales of Option
Shares to the Company in writing on a form prescribed by the Company.

(c) No Option shall be exercisable unless and until any applicable  registration
or  qualification  requirements  of federal and state  securities  laws, and all
other legal  requirements,  have been fully  complied with. The Company will use
reasonable  efforts to maintain the  effectiveness  of a Registration  Statement
under the  Securities  Act for the  issuance  of  Options  and  shares  acquired
thereunder,  but there may be times when no such Registration  Statement will be
currently  effective.  The  exercise  of Options  may be  temporarily  suspended
without  liability  to the  Company  during  times  when  no  such  Registration
Statement  is  currently  effective,  or during  times when,  in the  reasonable
opinion of the Committee,  such suspension is necessary to preclude violation of
any requirements of applicable law or regulatory bodies having jurisdiction over
the Company.  If any Option  would  expire for any reason  except the end of its
term during such a suspension,  then if exercise of such Option is duly tendered
before its expiration,  such Option shall be exercisable  and exercised  (unless
the  attempted  exercise is withdrawn) as of the first day after the end of such
suspension.  The  Company  shall  have no  obligation  to file any  Registration
Statement covering resales of Option Shares.

(d) Withholding  Taxes. The Company shall have the right at the time of exercise
of any Stock Option to make adequate provision for any federal, state, local, or
foreign  taxes  which it  believes  are or may be required by law to be withheld
with respect to such exercise.

(e) Dollar  Limitation.  The aggregate  fair market value  (determined as of the
respective  date or dates of  grant) of the  Common  Stock for which one or more
options  granted to any Employee under the Plan (or any other option plan of the
Company or its parent or subsidiary  corporations) may for the first time become
exercisable  as Incentive  Stock Options  during any one calendar year shall not
exceed the sum of One Hundred  Thousand  Dollars  ($100,000).  In the event that
Section 422 of the Internal  Revenue Code is amended to alter the limitation set
forth therein so that following such amendment such limitation shall differ from
the $100,000  limitation set forth above, the dollar  limitation of this Section
6(e) shall be  automatically  adjusted  accordingly.  To the extent the Employee
holds two or more such options  which become  exercisable  for the first time in
the same calendar year, the foregoing  limitation on the exercisability  thereof
as Incentive  Stock  Options shall be applied on the basis of the order in which
such  options  are  granted,  and any  Incentive  Stock  Options  subject to the
limitations of this Section 6(e) shall be treated as Non-Qualified Stock Options
subject to the applicable terms and conditions of the Plan.

7.  Corporate Transactions.

(a)  In  the  event  of  any  of  the  following   transactions   (a  "Corporate
Transaction"):

(i) a merger or consolidation in which the Company is not the surviving  entity,
except for a transaction  the principal  purpose of which is to change the State
of the Company's incorporation,

(ii) the sale,  transfer or other disposition of all or substantially all of the
assets of the Company, or

(iii) any  reverse  merger in which the Company is the  surviving  entity but in
which fifty percent (50%) or more of the Company's  outstanding  voting stock is
transferred to holders different from those who held the stock immediately prior
to such merger,  then each outstanding  option which is not to be assumed by the
successor  corporation  or parent  thereof (or to be replaced  with a comparable
option to purchase shares of the capital stock of such successor  corporation or
parent  thereof)  automatically  shall be  accelerated so that each such option,
immediately   prior  to  the  specified   effective   date  for  such  Corporate
Transaction,  shall become fully exercisable with respect to the total number of
shares of Common  Stock  purchasable  under such  option.  Any such  accelerated
options not exercised as of the consummation of the Corporate  Transaction shall
terminate  and  cease  to  be  exercisable,  unless  assumed  by  the  successor
corporation or parent thereof (or replaced with a comparable  option to purchase
shares of the capital stock of such successor corporation or parent thereof).

(b) In connection  with any Corporate  Transaction,  the  exercisability  of any
accelerated  options  under the Plan as an  Incentive  Stock Option shall remain
subject to the applicable dollar limitation of Section 6(e).

(c) The Plan  Administrator  shall have the right and power at any time to waive
in whole or in part,  absolutely  or  conditionally,  any  right of the  Company
contained in any instrument or option  agreement  evidencing any options granted
under the Plan.

(d) The grant of options  under the Plan shall in no way affect the right of the
Company to adjust,  reclassify,  reorganize  or otherwise  change its capital or
business  structure  or to merge,  consolidate,  dissolve,  liquidate or sell or
transfer all or any part of its business or assets.

8. Amendment of the Plan.

(a) The Board shall have complete and exclusive  power and authority to amend or
modify the Plan in any or all respects whatsoever;  provided,  however,  that no
such  amendment  or  modification  shall,  without the  consent of the  holders,
adversely  affect  rights and  obligations  with  respect to options at the time
outstanding  under the Plan;  and  provided  further,  that the Board shall not,
without the approval of the shareholders of the Company where required by law.

(b) The  provisions  of this Plan  pertaining  to  Incentive  Stock  Options are
intended to comply with all requirements of the Internal Revenue Code pertaining
to  qualification  of such  incentive  stock options as Incentive  Stock Options
under the  Internal  Revenue  Code and all  provisions  of the Plan with respect
thereto shall be construed in a manner consistent therewith.

9. Effective Date and Term of Plan.

(a) The Plan shall become  effective  when  adopted by the Board,  but no option
granted under the Plan shall become  exercisable unless and until the Plan shall
have been  approved by the  shareholders  of the  Company.  If such  shareholder
approval is not obtained within twelve (12) months after the date of the Board's
adoption of the Plan, then all options  previously  granted under the Plan shall
terminate and no further options shall be granted.  Subject to such  limitation,
the Plan  Administrator  may grant  options under the Plan at any time after the
Plan  effective  date and before the date fixed  herein for  termination  of the
Plan.

(b) Unless sooner terminated in accordance with the provisions  hereof, the Plan
shall  terminate  upon the earlier of (i) the  expiration  of the eight (8) year
period  measured  from the date of the Board's  adoption of the Plan or (ii) the
date on which all shares  available for issuance  under the Plan shall have been
issued or canceled  pursuant to the  exercise or  surrender  of options  granted
under the Plan.

10.  Regulatory Approvals.

The  implementation  of the Plan, the granting of any option under the Plan, and
the  issuance of Common Stock upon the exercise or surrender of any such option,
shall be subject to the  procurement by the Company of all approvals and permits
required  by  regulatory  authorities  having  jurisdiction  over the Plan,  the
options granted under the Plan and the Common Stock issued pursuant to the Plan.

11.  Requests for Information.

For  additional  information  about the Plan or the Plan  Administrator,  please
direct all such requests to the Chief Financial Officer of Boatracs, Inc., 10675
Sorrento  Valley Road,  Suite 200, San Diego, CA 92121,  telephone  number (619)
6570-0100.



 12.  Financial Reports.

The Company shall deliver financial and other information regarding the Company,
on an annual or other periodic basis, to each individual  holding an outstanding
option  under the Plan,  to the extent the Company is  required to provide  such
information  pursuant to Section  260.140.46  (or any successor  thereto) of the
Rules of the California Corporations Commissioner.

13.  Successors in Interest.

The Company  shall not assign or  delegate to any other  person this Plan or any
rights  or  obligations   under  this  Plan.   Subject  to  any  restriction  on
transferability  contained  in this Plan,  this Plan  shall be binding  upon and
shall  inure to the  benefit of the  successors-in-interest  and assigns of each
party  to  this  Plan.  Nothing  in  this  Paragraph  shall  create  any  rights
enforceable by any person not a party to this Plan, except for the rights of the
successors-in-interest  and  assigns  of each party to this  Plan,  unless  such
rights  are  expressly  granted  in this Plan to other  specifically  identified
persons.

14.  Governing Law.

This Plan shall be construed in  accordance  with,  and governed by, the laws of
the State of California.

15.  Attorney's Fees.

In the  event  any  litigation,  arbitration,  mediation,  or  other  proceeding
("Proceeding")  is initiated by any party(ies)  against any other  party(ies) to
enforce,  interpret or otherwise  obtain  judicial or  quasi-judicial  relief in
connection with this Plan the prevailing  party(ies) in such Proceeding shall be
entitled to recover from the unsuccessful  party(ies) all costs,  expenses,  and
actual attorney's and expert witness fees relating to or arising out of (a) such
Proceeding  (whether or not such Proceeding  proceeds to judgment),  and (b) any
post-judgment  or post-award  proceeding  including  without  limitation  one to
enforce  any  judgment or award  resulting  from any such  Proceeding.  Any such
judgment or award shall  contain a specific  provision  for the  recovery of all
such  subsequently  incurred costs,  expenses,  and actual attorney's and expert
witness fees.

16.  Prior Understandings.

This Plan contains the entire agreement  between the parties with respect to the
subject  matter of the Plan, is intended as a final  expression  with respect to
such  terms as are  included  in the  Plan,  and  supersedes  all  negotiations,
stipulations,  understandings,  agreements,  representations and warranties,  if
any,  with  respect to such  subject  matter,  which  precede or  accompany  the
execution of the Plan.

17.  Arbitration.

All  disputes  pertaining  to  this  Plan  shall  be  resolved  by the  American
Arbitration Association pursuant to its rules in San Diego, California.

18.  Option Non-Transferable; Exceptions

This option shall be neither  transferable nor assignable by Optionee other than
by will or by the laws of descent and distribution and may be exercised,  during
Optionee's lifetime, only by Optionee.