Northstar Electronics, Inc. (NEIK) Reports 2008 Year End Results

Market Wire, May, 2009

Northstar Electronics, Inc. (OTCBB: NEIK), specializing in advanced sonar technology for Homeland Security and Defense and Aeronautics Contract Manufacturing, announces its 2008 year end results.

For 2008, reported total revenues were US$2,254,657 compared with US$1,611,203 in 2007. The Company incurred a net loss from operations of US$1,740,630 or $0.06 per share compared with a net loss of US$778,818 or $0.03 per share in 2007. Total revenues included sales of US$2,129,994 and US$124,663 in recovery of Research and Development costs compared with US$1,501,375 and US$153,286 in 2007, respectively.

During the year, the Company received approximately US$6.1M worth of add-ons to its contract with Lockheed Martin Aeronautics for the manufacture of parts for the P3 patrol aircraft refurbishment program. Northstar continued work on a contract, Project X, with Lockheed Martin Canada, to develop a specialized underwater sonar system. Subsequent to the year end, the Company received a US$2.05M contract from L-3 Communications for the manufacture of consoles for navy patrol frigates.

Dr. Wilson Russell, Northstar's CEO, stated that 2008 was a transition year because the Company saw its backlog of work by year's end increase by multiples of what it had been in any previous time. He also added that the large loss was mainly due to the fact that Northstar had entered a new area of business, aerospace manufacturing, and the first phase of the P3 contract involved excess costs to ensure that the high quality, project management, engineering and production standards of the aerospace industry were met internally as well as with suppliers.

Dr. Russell added that the Company is now well established in its aerospace business and management expects much improved results in both revenues and the bottom line in 2009 with the existing workload in place and with expected new contracts.

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, b.jedynak-janispr@att.net , (312) 943-1000 Ext. 12.

SAFE HARBOR: NEIK cautions that the statements made in this press release constitute forward looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.

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CONTACT: YES INTERNATIONAL 800-631-8127