Northstar Technical Signs Teaming Agreement With Memorial University of Newfoundland and the Institute for Ocean Technology.

ST. JOHN'S, Newfoundland & LABRADOR, Canada -- Northstar Technical Inc., a subsidiary of Northstar Electronics, Inc. (OTCBB:NEIK), today announced that it has signed a teaming agreement with Memorial University of Newfoundland (MUN) and the National Research Council Institute for Ocean Technology (IOT).

Under the terms of the three-phase agreement, Northstar will provide sonar technologies such as obstacle avoidance, water depth and temperature, bottom finding and vehicle pitch and roll to the autonomous underwater vehicle known as C-SCOUT, on which MUN and IOT have been collaborating. In turn, Northstar will receive valuable test data for its cutting edge sonar technologies being developed under the Aquacomm program.

Phase two of the agreement will result in the implementation of Northstar's Acoustic Modem as the primary communications channel between the C-SCOUT and the surface. This integration will enable the C-SCOUT to conduct complex missions with real time communications capability.

Dr. Wilson Russell, CEO of Northstar Electronic, Inc., stated, "Our Acoustic Modem will be a modular design focusing on high data rates, data security, long range operations, and reduced power consumption. This approach will allow Northstar to be very responsive to product requests from a variety of industry sectors."

Dr. Neil Bose, Canada Research Chair in Offshore and Underwater Vehicle Design and professor of Ocean and Naval Architectural Engineering in the Faculty of Engineering and Applied Science, stated, "This is an ideal opportunity based on a match of expertise, ours in underwater vehicle technology and Northstar's in sonar development, where both organizations are developing equipment and products in areas that would be difficult without the expertise of the other."

Dr. Mary Williams, Director General of the National Research Council's IOT, added that C-SCOUT could not be developed without collaboration among the research partners. "NRC has been fostering the ocean technology cluster in St. John's," she said, "and this project is a perfect example of how much more we can accomplish collectively. By using our strengths as a cluster we can be competitive internationally when it comes to developing ocean technology systems such as C-SCOUT."

About Northstar Electronics, Inc.

Northstar Electronics provides innovative technologies and services to homeland security, defense and aerospace, 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 electronic contract manufacturing.

About Memorial University of Newfoundland and Labrador

The largest university in Atlantic Canada with over 17,000 students, Memorial operates from five locations including St. John's, Corner Brook and Happy Valley-Goose Bay in Newfoundland and Labrador, as well as the French island of Saint-Pierre, and Harlow, England. Students experience a wide variety of learning environments that emphasize experiential learning and research with internationally recognized strengths in such diverse areas as marine biology, cold ocean studies, native and northern education, community medicine, folklore, genetics and music. Memorial University has been offering engineering education since 1930 and our program was one of the first in Canada to offer a co-operative approach to learning. All of our programs are supported by Memorial's state-of-the-art engineering laboratories incorporating advanced equipment and instrumentation to facilitate hands-on learning.

About NRC Institute for Ocean Technology

The NRC Institute for Ocean Technology was established in St. John's in 1985 as Canada's national centre for ocean technology R&D. Its research focuses on the performance of engineering systems in the ocean environment, developing new technologies to monitor or improve those systems, and transferring that technology to public and private sector users. NRC-IOT recently opened an Ocean Technology Enterprise Centre to assist new and established companies in the field. Ten local firms are currently taking advantage of the program to develop their own high-tech products and services.