Northstar prepares for growth as Lockheed Martin increases P-3 order

Sept 26, 2008 – St. John’s NL - Northstar Network Ltd. (Northstar) announced today that Lockheed Martin Aeronautics has increased its purchase orders from 28 ship sets in follow-on work under the P-3 Service Life Extension Program to 41 ship sets. Each ship set corresponds to roughly 1/5th of the parts that make up the wings on a P3 plane for 41 planes. This is an additional 13 ship sets above what was announced on Sept 2, and now represents over $6M in revenue to Northstar over the next year.

“We were very pleased to see this increase in production quantities and look forward to seeing it go even higher in the coming months,” says Howard Nash, President of Northstar Network.

Under Lockheed Martin Aeronautics’ P-3 Service Life Extension Program, Northstar manufactures finished components and assemblies for new production service life extension kits for the P-3 Orion wing upgrade. These components add more than 15,000 flying hours to each aircraft, representing 15 to 20 additional years of service for this critical maritime patrol and reconnaissance resource.

Northstar is responsible for supplying approximately 400 parts and assemblies per aircraft, or about one fifth of the total parts required under the wing upgrade program. These parts and assemblies primarily include machined parts and formed sheet metal assemblies of various levels of complexity in aluminium and alloy steel grades, and range from simple structural members to flight critical components.

“These additional follow on orders demonstrate the confidence that Lockheed Martin have developed in Northstar’s ability to ramp up on a Legacy Program like the P3. These additional orders due over such a short period of time will facilitate a new growth era for Northstar but by no means bring us to capacity. We are also working with the other Tier Ones involved in Defence Procurement in Canada and Northstar will continue to provide them with a viable opportunity to put this type of valued business into Atlantic Canada,” said Mr. Nash.

About Northstar Network
Northstar Network Ltd. is a systems integrator and supply chain manager that together with its 25+ affiliated companies and educational institutions offers industry leading capabilities in systems integration, design engineering, precision machining, electronic contract manufacturing, e-learning and information technology. Northstar Network is wholly owned by Northstar Electronics Inc. (OTCBB: NEIK).

About Lockheed Martin
Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2007 sales of $49.1 billion.