SOURCE: Northstar Electronics, Inc.

 

VANCOUVER, BC--(Marketwire - May 21, 2009) - Northstar Electronics, Inc. (OTCBB: NEIK), specializing in advanced sonar technology for Homeland Security and Defense and Aeronautics Contract Manufacturing, announces its 1st Quarter, 2009 results.

For the period ending March 31, 2009 the Company reported total revenues of US$488,034 compared with US$423,545 in the same period 2008. The Company incurred a net loss from operations of US$(212,938), a reduction of 38.7%, compared with a net loss of US$(347,089) or $0.01 per share in the same period 2008.

During the quarter NEIK received a US$2.05M contract from L-3 Communications MAPPS, Inc. for the manufacture of Machine Control Consoles for navy patrol frigates. This contract demonstrates Northstar's ability to expand its business with multiple defense contractors. Subsequent to the period, a further bid was submitted for additions to the original contract. On another expansion front, a bid was submitted to Bombardier for the manufacture of doors for a number of the 415 Water Bomber aircraft.

A milestone occurred in the quarter with the P3 Orion ASLEP project. Costly, First Article Inspections (FAI) parts production were completed on the first phase for 48 aircraft. More aircraft upgrade refurbishments are available, and Northstar has increased raw material orders up to 60 aircraft.

During the quarter, NEIK delivered its first Project X, Prototype unit to Lockheed Martin Canada (LMA) for final inspection and testing. A bid was previously submitted for the production of two additional Prototype units. Responses are anticipated during the following quarters. In the Project X contract, Northstar is working in conjunction with LMA to develop a specialized underwater sonar system.

While revenues increased (15.2%), measures were taken to further streamline expenses (-28.8%). This program has resulted in a cost effective core operation that can accommodate revenue expansion with minimal increases in future, general expenses.

Dr. Wilson Russell, Northstar's CEO, stated, "The results demonstrate that cost streamlining efforts have begun to work, giving us high confidence in achieving profitability as production capacity and revenues grow through the year."

For further information contact, Northstar Electronics, Inc., www.northstarelectronics.com, Tel:604-685-0364 and/or Rich Kaiser-Investor Relations, yes@yesinternational.com, Tel:800-631-8127 and/or Ms. Beverly Jedynak-Martin Janis & Co, Inc., b.jedynak-janispr@att.net, Tel:(312) 943-1000 Ext. 12.

Safe Harbor:

Note: Included in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain internal and external factors.