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Northstar Electronics Provides Sonar Technology Update

(July 11, 2012)

VANCOUVER, BC -- (Marketwire) -- 07/11/12 -- Northstar Electronics, Inc. (OTCQB: NEIK) (PINKSHEETS: NEIK) announces that its subsidiary, Echotec Sonar, is making rapid progress in the development of its 3-D High Definition Sonar (HDS).

Echotec's HDS will offer some of the highest resolution in the sonar industry. The HDS offers sub beamwidth resolution without compromise to performance encountered in typical cross-correlation receivers, meaning that not only is the image clear and crisp, but it is displayed without delay to the operator. When combined with innovations in extremely high bandwidth and frequency diversity beamforming, the HDS is designed to be a low footprint device with 3-D performance unparalleled in the industry.

This technology can play an important security role within multiple industries, especially within port and ship security. Historically, port and ship security personnel had to rely on grainy images that did not always indicate a proper threat. With the Echotec HDS technology, port and ship security personnel should see an image that is much crisper and less cluttered than previously experienced with conventional systems. With such a high-definition image, untrained operators are able to use the equipment quickly, reducing false positives allowing reduced costs within the port, and an opportunity for more personnel to utilize the system.

In the ship protection role, the extreme bandwidth and vertical resolution design allows operators to discriminate near surface contacts, or better identification of objects near the surface of the water. This is an ideal feature for ships traversing hostile waters such as the Strait of Hormuz. The high bandwidth causes the surface of the water itself to be filtered out, whereas echoes from actual near surface contacts are properly identified and shown. The bandwidth channel yields excellent signal to noise ratios against mine-like objects (MLO). The HDS is designed to maximize the use of a small diameter transducer unlike many of the devices presently out there today which are very large, some requiring special equipment to attach to vessels. The small diameter size had been defined as the appropriate size to be deployed from the AN/UQS-4 sea-chest found on most North American Navy vessels today. Because the Echotec HDS comes in the appropriate form factor for Navy vessels, the opportunity for implementations is available at project inception. As large commercial fleets replace their aging or bulky technology, it is likely that they will look to affordable, properly sized components as part of their selection criteria.

In addition to the above, Echotec is designing the HDS to utilize a fully adaptive set of controls, which automatically adjust for changing environmental conditions and system maturity. As the equipment ages and the transducer parameters change, the high performance processor is designed to adjust to optimize system performance. This design minimizes the requirement for expensive sonar performance figure (SPF) testing. Additionally, a simple web-based diagnostic tool will allow the operator to download the system health status logs and self-test results to a simple memory stick or the operator emails the file to Echotec. Technologists at Echotec can then analyze the data and provide full diagnostics in a similar manner to that found in most modern automotive dealerships. A full history combined with all maintenance records will follow the equipment identification number through Echotec's product database.

We believe that the HDS system under development by Echotec will be proven to be one of the most advanced products available within the sonar industry and believe that upon its launch, numerous customers across many verticals will find our product cost effective, operationally effective and easy to use.

About Echotec:

Echotec Sonar Corporation is a wholly owned subsidiary of Northstar Eletronics, Inc. The founders have over eighty combined man-years of expertise developing high frequency sonar products within the defense and commercial industries. Echotec Sonar is a world leader in this field through experience, technical acumen, and a team diversity, which understands the needs of many defense and commercial entities.

About Northstar:
Northstar Electronics, Inc., is a holding company with executive management specialized in design engineering, defense, advanced systems, security, sonar, systems integration, and prototyping fields. Northstar is actively pursuing opportunities through acquisition, joint venture, or merger to increase revenues and expand its base of subsidiaries.

For further information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL,, 800-631-8127

Safe Harbor Statement
This press release contains forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as its future results of operations and financial condition. Such risks include, but are not limited to, the effects of competition with existing enterprises and/or new entrants into the company's markets and industries, fluctuations in currency exchange rates, domestic and global economic conditions generally, the company's ability to obtain financing and attract suitable personnel where required to fully implement its business plan, the adoption and acceptance by the marketplace of the company's technologies and product and service offerings, the possibility of new technologies that are competitive with the company's planned product and service offerings and the effects of future political and economic developments both in the United States and abroad, among others. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of information, future events or otherwise.

For further information contact
Rich Kaiser
Investor Relations

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