SOURCE: Northstar Electronics, Inc.

December 16, 2008 09:15 ET

Northstar Electronics, Inc. (NEIK) Provides 2008 Update; Forecast for 2009

VANCOUVER, BC--(Marketwire - December 16, 2008) - Northstar Electronics, Inc. (OTCBB: NEIK) provides an update of the Company's 2008 defense activities and a forecast for 2009.

In 2008 Northstar had good success securing new contract work in the defense market. Building on the original contract to provide parts for Lockheed Martin's P-3 aircraft re-wing upgrade program, the Company received additional orders in 2008 totaling USD$6.6M to be completed by the end of next year.

NEIK also continued work on Project X, a contract for a different division of Lockheed Martin in which Northstar is helping to design and build prototypes of advanced sonar equipment. The Company had a relatively low volume of throughput in 2008 in the numbers of submarine command and control consoles manufactured for Lockheed Martin. Northstar, along with Tyco International, previously qualified as an authorized supplier of specialized fiber optic cables for the new F-35 Joint Strike Fighter airplane.

In 2009 Northstar expects to add to the P-3 work as the Lockheed Martin program expands with new orders coming through from within and outside the US. Orders for sonar equipment are expected to start during the year and should be ongoing thereafter. First orders for fiber optic cables for the F-35 are expected in '09. Orders for submarine consoles are expected to increase substantially over those in '08.

In addition to the Company's defense work, Northstar's management expects an increase in sales of the Netmind commercial system, as marketing efforts expand in new areas.

The Company has a USD$5M funding offering at this time, structured to provide what management believes is an attractive return to investors while limiting share dilution by providing a floor price on eventual conversion based in part on the Company's performance and backlog of work at the time of the investment. The usage of these funds is aimed at increased production capacity and business growth.

Northstar's CEO, Dr. Wilson Russell, says, "The defense sector is the best one to prosper in these tough economic times, with prime contractors such as Lockheed Martin having large, long term contracts in place. Having laid a solid foundation in defense contracting, we believe that 2009 will be our year to 'break out.' Based on the backlog of contract work in place and new work we expect, we believe that Northstar can achieve revenues of USD$8-$11M in '09 with a potential profit of USD$1.0-1.5M."

For further information (www.northstarelectronics.com) contact Rich Kaiser Investor Relations, YES INTERNATIONAL, yes@yesinternational.com, #800-631-8127 and/or Ms. Beverly Jedynak, Media Relations, Martin Janis & Co, Inc., b.jedynak-janispr@att.net, (312) 943-1000 Ext. 12.

Safe Harbor: Included in this release are forward-looking statements within Section 27A of the Securities Act of 1993, as amended, and Section 21E, Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. The Company's actual results could differ materially from those anticipated.

Contact Information

  • Contact:
    YES INTERNATIONAL
    800-631-8127