Northstar Electronics Corrects Reuters Misstatements

Business Wire, August 22, 2002

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 22, 2002

Northstar Electronics, Inc. (OTCBB:NEIK) wishes to clarify a serious error in a Reuters article titled "NorthStar Network settles with SEC over statements," August 21, 2002.

In the article, Reuters stated that NorthStar Network, Inc. is a unit of Northstar Electronics, Inc. This is false.

Dr. Wilson Russell, President of Northstar Electronics, an underwater sonar technology and defense manufacturing company, states "We have no connection with or knowledge of this company, NorthStar Network, Inc. Our subsidiary is Northstar Network LTD., based in Eastern Canada, and it carries out systems integration for defense and aerospace."

Russell further states, "We hope this mistake by Reuters has not caused any difficulties whatsoever for our shareholders and the investment community."

ABOUT NORTHSTAR ELECTRONICS, INC.

Northstar Electronics, Inc. is the parent company of Northstar Network Ltd. and Northstar Technical Inc. Northstar Network carries out design engineering, manufacturing and systems integration for defense and aerospace. Northstar Technical, in addition to developing and manufacturing wireless communications for underwater applications, carries out defense contracting.

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 the 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.