May 03, 2010 10:25 ET

Northstar Electronics (NEIK) Receives New Work on Navy Frigate Program From L-3

VANCOUVER, BC--(Marketwire - May 3, 2010) -  Northstar Electronics,Inc. (OTCBB: NEIK) announced today that its subsidiary, Northstar Network, Ltd., has been awarded additional work by L-3 Communications MAPPS Inc. (L-3 MAPPS) for the Halifax Class frigates trainer program. This new work will consist of the design and building of prototype Landing Safety Officer Control Panels (LSOCP), Local Operator Panels for the Trainers (LOP Trainers), and a prototype Power Data Distribution Box (PDDB) for the Bus Access Module (BAM) system. The work builds on the console and trainer systems that Northstar currently manufactures for L-3 MAPPS.

"The continued broadening of our contracts with L-3 MAPPS is a direct result of the value and quality we provide our customers. Our dedicated engineering, quality management and project management teams provide world-class support to L-3, ensuring that the delivered products meet or exceed the customer's requirements," said Howard Nash, President of Northstar Network.

L-3 MAPPS' Integrated Platform Management System (IPMS) provides advanced ship control and monitoring capabilities for the frigates' ship platform systems, including propulsion, electrical systems, and auxiliaries. It also provides advanced functionality with a damage control system, an on-board training system, CCTV integration, and an interface with the ship's new combat management system.

L-3 MAPPS first implemented the pioneering Integrated Machinery Control System (IMCS) on the Canadian Patrol Frigate program in the 1980s. Since then, the company has been continuously innovating its open-architecture 1PM S, which is currently exported to 18 navies around the world. "We are very pleased to continue working with our partner, Northstar, and with the quality of the products delivered to L-3 MAPPS," said Shankar Udupa, Vice President of Engineering and Operations of L-3 MAPPS.

The Halifax Class frigate is a class of multi-role patrol frigates that has served the Canadian Forces since 1992. The HMCS Halifax was the first of twelve Canadian-designed and built vessels, which combine traditional anti-submarine capabilities with systems to manage surface and air threats. In 2007, the Canadian government announced a planned refit of the Halifax Class known as the Halifax Class Modernization program.

Mr. Terry McLeod, Vice President, Northstar Electronics, and CEO, Northstar Network Ltd., elaborated on the Company's recent contract history and anticipated new contracts this year, "We received an initial $2.5M contract from L-3 in 2009 for the Canadian frigate consoles which has seen several increases. This new work is for a different group of consoles for the same frigates. We also expect to carry out future contacts from L-3 for foreign navies." 

As well, Mr Mcleod added, "We are carrying out an aeronautics manufacturing contract for another large defense and aerospace company and we anticipate strong growth in this area in the near future, both on existing programs and new ones. We have been diligently working to expand our customer base to new types of design and manufacturing with other prime defense and aerospace prime contractors and we believe we are close to achieving results with several of them in 2010. Our main objectives are to continue to increase our revenues significantly while maintaining stringent cost controls, thereby leading to profitability."

About Northstar Electronics, Inc.
Northstar Electronics, through its subsidiary, Northstar Network Ltd. provides engineering, prototyping and contract manufacturing services to the defense and Homeland Security industries. www.northstarelectronics.com.

About L-3 MAPPS
L-3 MAPPS, a division of the L-3 Marine & Power Systems group, has over 25 years of experience in technological advances in the marine automation field and over 35 years of experience in delivering high-fidelity power plant simulation to leading utilities worldwide. L-3 MAPPS also provides targeted controls and simulation solutions to the space sector.

For further information contact, NorthStar Electronics, Inc., www.northstarelectronics.com, #604-685-0364 and/or Rich Kaiser Investor Relations, YES INTERNATIONAL, yes@yesinternational.com, #800-631-8127 and/or Ms. Beverly Jedynak, Media Relations, Martin Janis & Co, Inc., b.jedynak-janispr@att.net, (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. Although the Company believes such expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove correct. 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.