Northstar Electronics, Inc. Receives Design Engineering Contract from Lockheed Martin Canada

Business Wire, July 10, 2007

VANCOUVER, British Columbia -- Dr. Wilson Russell, CEO of Northstar Electronics, Inc. (OTCBB:NEIK) announced today that Lockheed Martin Canada, a division of Lockheed Martin (NYSE:LMT), has awarded a time and materials-based contract for advanced sonar design engineering and prototype work to Northstar Network Ltd.

"This contract continues our long-standing relationship with Lockheed Martin Canada, and builds well on our design experience with rugged sonar systems for harsh marine environments," said Howard Nash, President of Northstar Network.

In the past, Northstar Network has participated in the design and manufacture of a number of sophisticated sonar hardware systems as a subcontractor of Lockheed Martin, including Wide Band Sonar Projectors and Underwater Swimmer Detection Systems.

Northstar Network Ltd., located in St. John's, Newfoundland, is a wholly owned subsidiary of Northstar Electronics, Inc. Northstar will use its established Affiliate Network in Atlantic Canada as preferred suppliers on this contract.

About Northstar Electronics

Northstar Electronics, Inc. (OTCBB:NEIK) is the parent company of Northstar Network Ltd. and Northstar Technical Inc.

Northstar Network Ltd. is a system integrator and supply chain manager that, together with its more than 25 affiliated companies and educational institutions, offers industry-leading capabilities in systems integration, precision machining, electronic contract manufacturing, e-learning and information technology.

Northstar Technical Inc. is a developer of advanced sonar technology products for the defence, commercial fishing and offshore petroleum industries. The company is also an advanced electronics contract manufacturer.

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.

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.