June 03, 2010 09:20 ET

Northstar Electronics (NEIK) Subsidiary Signs Letter of Intent With DEW for Collaboration on Upcoming Defence Work

VANCOUVER, BC--(Marketwire - June 3, 2010) -  Northstar Electronics, Inc. (Northstar) (OTCBB: NEIK) announced today that its subsidiary, Northstar Network Ltd. (NNL), has signed a Letter of Intent with DEW Engineering and Development ULC (DEW) covering up to $16M in total opportunities for NNL. This agreement provides for collaboration between NNL and DEW on a number of Canadian defence projects. 

DEW, of Ottawa, Ontario and Miramichi, New Brunswick, is well positioned for selection as both a prime contractor and top-tier supplier for a number of Canadian military land-vehicle and related programs. Recent Canadian Forces announcements include CDN$5.2 billion in funding for land-vehicle upgrades and acquisition projects, including:

• Light Armoured Vehicle (LAV) Fleet Upgrade
• Mobile Tactical Vehicle (MTV)
• Close Combat Vehicle (CCV)
• Medium Support Vehicle System (MSVS)
• Tactical Armoured Patrol Vehicle (TAPV)

With over three decades of experience supporting the Canadian Forces on many major vehicle, trailer and shelter re-life, re-role and acquisition programs, DEW has a substantial history of success in the field, delivering a range of development and manufacturing capabilities.

NNL, Northstar's subsidiary located in St. John's, Newfoundland, is a prominent Atlantic Canada supplier for contract manufacturing, assembly and integration services. NNL manufactures a number of defence products on contract, including consoles for the Halifax-Class Frigates and Victoria-Class Submarines, aircraft parts and assemblies for the P-3 Orion/CP-140 Aurora Maritime patrol aircraft, and a number of sonar systems for threat detection and classification. NNL also backs its products with a suite of support services including design optimisation, engineering, trainer development and in-service support. 

"DEW's extensive track record and unmatched products provide a wealth of opportunities for NNL," says Terry McLeod, Northstar's VP, Development & Planning. "And we bring to the table a solid range of services, exceptional value and quality, and added regional diversity for DEW's supply chain. The relationship built with DEW should be mutually rewarding for many years to come." He also added, "This relationship further diversifies Northstar's contract manufacturing customer base."

DEW sees this new relationship with NNL as a way to not only provide a high-quality, best value product to the Canadian forces, but also maintain Canadian jobs. As expressed by DEW President Tim Dear, "DEW is pleased to continue to expand and diversify our capabilities and experience. This agreement between DEW and NNL will bolster DEW's Canadian supply chain, and provide valuable and long-term contract manufacturing opportunities for NNL, now and in the future."

About Northstar Network Ltd. (NNL)
NNL is an AS9100 and ISO 9001:2000 registered company providing systems integration, OEM and contract manufacturing, engineering and supply chain management services. Together with its 25 affiliated companies and educational institutions, NNL offers industry leading capabilities in systems integration, design engineering, precision machining, sheet metal fabrication, and electronic contract manufacturing. NNL is wholly owned by Northstar Electronics Inc. www.northstarelectronics.com

About DEW Engineering and Development ULC
Founded in 1978, DEW Engineering and Development ULC is a wholly owned subsidiary of CoorsTek of Golden, Colorado and organized in two geographic areas employing over 400 people with the main plant and headquarters in Ottawa (125,000 square feet of manufacturing) and a manufacturing organization in Miramichi, New Brunswick (90,000 square feet of manufacturing).

DEW specializes in military vehicle assembly and manufacturing, land combat vehicle re-life/re-role and add-on armor protection systems. DEW's Armor Unit specializes in offering one-stop shopping for the design, engineering, testing, prototyping, manufacture and support of large scale high-tech ceramic composite armor systems. DEW has designed and manufactured thousands of modular add-on ceramic armor kits and customized panels for a broad range of wheeled and tracked military vehicles.

DEW takes concepts and brings them to combat! www.dewengineering.com

For further information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL, yes@yesinternational.com, #800-631-8127 and/or Beverly Jedynak, Media Relations, Martin Janis & Co, Inc., bjedynak@janispr.com, (312) 943-1000 Ext. 12.

Safe Harbor: Included in 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.