Northstar Electronics Announces its 2004 3rd Quarter Results.

VANCOUVER, British Columbia -- Northstar Electronics, Inc. (OTCBB:NEIK), an electronics contract manufacturer for the Homeland Security and defense industry, and a provider of advanced underwater sonar technologies today announced its 2004 third quarter results.

Gross revenues for the three months ended September 30, 2004 were $305,875 compared to $407,670 in the same period of last year. Revenues are temporarily lower because of the phasing in of our new Net Symmetry System. The Company incurred a net loss for the quarter of $211,346 or $0.01 per share compared to a net loss of $209,132 or $0.02 per share recorded for the same period of 2003.

Gross revenues for the nine months ended September 30, 2004 were $1,244,207 compared to gross revenues of $1,326,599 for the same period a year earlier. The Company incurred a net loss for the nine months of $501,190 or $0.03 per share compared to a net loss of $386,938 or $0.03 per share recorded for the same period of 2003.

To date, expenditures on our AQUACOMM advanced sonar development program are $1,970,270. Among the new developments are a general purpose acoustic receiver, spread spectrum communications, the Net Symmetry System and improved sonar sensors.

The Company also has access to $1,355,000 in funding for the development of technologies in defense and Homeland Security.

Dr. Wilson Russell, President and CEO of Northstar Electronics, making the announcement today said, "We are currently pursuing several breakthrough contracts in defense and Homeland Security as a subcontractor to a major defense company. We are optimistic about our chances for these and we also believe our specialized expertise in sonar intruder detection fits well with future demand for these systems."

About Northstar Electronics, Inc.

Northstar Electronics provides technologies and products to the Homeland Security, defense, and aerospace industries, in addition to offshore petroleum and commercial fishing. Northstar Electronics, through its wholly owned subsidiaries, Northstar Technical Inc. and Northstar Network Ltd., specializes in advanced sonar technology, systems integration, and electronics contract manufacturing.

Safe Harbor:

Note: 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, 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 such expectations reflected in such forward-looking statements will prove correct. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain internal and external factors.