SOURCE: Northstar Electronics, Inc.

Northstar Electronics, Inc.

February 15, 2011 11:30 ET

Northstar Electronics Signs Letter of Intent to Acquire Sonar Company

VANCOUVER, BC--(Marketwire - February 15, 2011) - Northstar Electronics, Inc. (OTCBB: NEIK), a provider of specialized engineering, systems integration, prototyping and production services to customers in the defense and Homeland Security industries, announced today that it has signed a letter of intent to acquire privately held MAQ Sonar.

MAQ Sonar has designed and built advanced omni-directional sonar systems, primarily for the commercial fishing industry, since 1978. At its factory and R&D center in Ontario, Canada, MAQ Sonar has built, tested and assembled many sonar systems now being used from Alaska to Chile and from Russia to South Africa. 

Phillip Johnson, Chief Technical Officer, MAQ Sonar, commented on the proposed acquisition: "MAQ Sonar provides cost-competitive advanced sonar products to commercial fisheries worldwide. In addition, key senior staff members are leading experts in defense high-frequency sonar technology with extensive experience in homeland defense systems. We see the coming together of this talent base, MAQ's efficient manufacturing processes, and Northstar's exposure in the fisheries and defense sectors, as a 'Win-Win' acquisition."

Dr. Wilson Russell, Chief Executive Officer, Northstar Electronics, stated, "MAQ Sonar brings world-class sonar capabilities which perfectly complement Northstar's current defense-oriented technology base. We have previously worked closely with several of MAQ's senior personnel on advanced sonar developments for both anti-terrorism and naval applications. In addition, we believe that MAQ is a vibrant, growing company in the commercial fishing industry, and we look forward to supporting and expanding our mutual interests in that industry."

Details of the proposed transaction are not yet available; however, Northstar expects to consummate the transaction early in the second quarter.

"The need for innovative sonar systems is greater right now than ever," Dr. Russell added. "Together, we expect to build a stronger, highly competitive sonar business combining both the commercial and defense markets."

About MAQ Sonar:

MAQ Sonar builds a world-class commercial fishing Omni Sonar that can withstand the harsh environment of the world's sea. MAQ Sonar electronics are simple, small, and powerful. The Company has established dealers or distributors worldwide. Besides dealers located in Canada and the United States, the Company distributes to markets in Central and South America, the European Zone, Tunisia, South Africa, South Korea, Russia and Australia.

About Northstar:

Northstar Electronics, Inc., through its subsidiary, Northstar Network Ltd. (NNL), provides specialized engineering, systems integration, prototyping and production services primarily to defense and Homeland Security prime contractors. The Company is presently an approved contractor with Lockheed Martin, BAE, and L-3 Communications and pending with several other prime contractors. NNL is a systems integrator and supply chain manager that, together with its affiliated companies and educational institutions, offers Indus try-leading capabilities in systems integration, design engineering, precision machining, mechanical fabrication, electronic contract manufacturing and information technology.

Safe Harbor: Included in release are forward-looking statements within the meaning of Section 27A- Securities Act 1933, as amended, and Section 21E - Securities Exchange Act 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 forward-looking statements will prove correct; actual results could differ materially.

Contact Information

  • Contact:

    Dr. Wilson Russell
    Northstar Electronics, Inc.
    (604) 685-0364
    Rich Kaiser
    Investor Relations