SOURCE: Northstar Electronics, Inc.

September 16, 2008 09:30 ET

Northstar Electronics, Inc. (NEIK) Comments on Its Growth Forecast

VANCOUVER, BC--(Marketwire - September 16, 2008) - Northstar Electronics, Inc. (OTCBB: NEIK) would like to outline for stockholders and potential investors present development activities taking place at Northstar now and what we believe we will see in coming corporate developments.

CURRENT PROJECTS

1) P3 - Under a contract with Lockheed Martin Aeronautics, Northstar is
   producing wing refurbishment parts for the P-3 Maritime Surveillance
   aircraft.

On August 27, 2008, Northstar announced increased work on the P-3 program totaling US$4,116,000. This is the single largest contract the Company has received to date and represents a new future which we believe will lead to larger and larger contracts in the aeronautics field. This new work is scheduled for completion by the end of 2009.

For reference please go to:

http://www.asdwire.com/landing.asp?case=1&prid=8097&cid=463

2) Project X - The Company is designing and developing an underwater
   system under contract to Lockheed Martin Canada. This project is
   nearing completion and we expect future orders for the production of
   the sonar hardware for the system.

AEROSPACE AND DEFENSE

Earlier in the year, a news story based on a press conference given by the Canadian government mentioned Northstar Electronics, Inc.; whereas the Company was expected to win contracts on a multi-billion dollar contract won by Lockheed Martin Aeronautics to supply the Canadian military with new C130J airplanes. We believe our experiences on the P-3 program will stand us in good stead in securing work on the C130J program.

In 2009, Northstar expects to firm up first orders for fiber optic cables for the U.S. military's F-35 (JSF) fighter airplane.

We also have bids into a customer for the manufacture of submarine command and control consoles with contract awards expected in 2009.

NEW AREA OF BUSINESS

Through an affiliated company, Northstar intends to enter the field of RFID (Radio frequency Identification) as a manufacturer. Northstar will focus on manufacturing opportunities for RFID readers, whose manufacture would draw on our submarine console manufacturing experience.

PROSPECTS FOR THE REMAINDER OF 2008 AND FISCAL 2009

Building on the recent results achieved, we anticipate solid growth in each of our business activities leading to improved financial performance in the 4th quarter 2008 and profitability in 2009.

FUNDING

In order to ensure the Company has sufficient working capital, we are attempting to raise $5M through a Unit Offering. This offering is based primarily on the issuance of preferred shares rather than common shares to prevent any significant dilution of the Company's stock. The funds will be used for new P-3 work, sonar project production, product production and sales, expected contracts on the C130J, other contracts in defense, business development, and to put in place a small, high-end, advanced precision machine shop to obtain more of the high-value aerospace work.

SUMMARY

We believe the Company has laid a stronger foundation for significant growth going forward. We expect that we will begin the 2009 year with a solid order book, and see revenues grow several hundred percent and the Company reach profitability translating into increased shareholder value.

For further information, please refer the Company's filings with the SEC and/or www.northstarelectronics.com and/or Rich Kaiser, Investor Releations, YES INTERNATIONAL, #757-306-6090.

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. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made and are subject to change.

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