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Tuesday February 6, 2001 :

Northstar/Lockheed Martin Canada Sign MOU for Pursuit of $2.8 Billion Defense Program

VANCOUVER, Canada ( Northstar Electronics Inc. Press Release ) - Northstar Electronics Inc. today announced that Northstar Network Ltd., its subsidiary for the defense and aerospace sectors, signed a Memorandum of Understanding with Lockheed Martin Canada, a unit of Lockheed Martin Corp., for the pursuit of the Canadian federal government's $2.8 billion Maritime Helicopter Program.

Northstar Network is a unique organization aimed at carrying out national and international electronic and software contracts. One of its primary strengths derives from its affiliate program. Currently 15 high technology companies and research, development and training institutions are Northstar Network affiliates. Their combined expertise covers a wide range of technology apabilities including fiber optics, microelectronics design, advanced electronic manufacturing, electromechanical design, software development and systems integration. More than 1,500 professional and support personnel are in the network.

``We are pleased to be able to add the Northstar Network to our all-Canadian team,'' said Dan Spoor, president and chief executive officer of Lockheed Martin Canada. ``The member companies of Northstar Network provide us with a tremendous pool of talent that we believe will complement our efforts. I believe that this arrangement has potential to extend beyond this program, and we look forward to exploring other opportunities where there might be synergy.''

The Canadian federal government announced its intention to purchase 28 maritime helicopters to replace the aging fleet of Sea Kings in August 2000. The procurement of the fleet is being conducted through two separate competitions in which the basic vehicle will be selected by 2001 and a mission systems integrator by late 2002. Delivery of the first fully integrated mission-ready helicopter is scheduled for late 2005.

Rear Admiral (Ret'd) Ken Summers, president of Northstar Network, stated, ``We are delighted that Northstar Network is a member of the Lockheed Martin Canada team. We are excited about the MHP project and also about working with Lockheed Martin on other major defense contracts.''

Dr. Wilson Russell, CEO of Northstar Electronics, added ``This MOU is a huge step towards achieving our overall growth objectives for Northstar Electronics over the next few years.''


Lockheed Martin is the world leader in maritime mission systems integration having delivered more than 300 helicopters to countries throughout the world. As prime contractor for both the United Kingdom's fleet of Merlin helicopters and the U.S. Navy's SH-60R, Lockheed Martin has demonstrated its ability to deliver state-of-the-art mission systems that meet the needs of maritime aviation.

Northstar Electronics Inc. is the parent company of both Northstar Network Ltd. and Northstar Technical Inc., which develops wireless communications systems for underwater applications. Northstar Technical also is currently manufacturing submarine control consoles under contract to Lockheed Martin in Manassas, Va.

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