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Northstar Aerospace, Inc. receives $53 million contract for AH-64D Apache Modernization

May 5, 2010, Chicago – Northstar
Aerospace (Canada), Inc., a subsidiary of Northstar Aerospace, Inc.
("Northstar"), has received a purchase contract from The Boeing Company
for the production of transmission components using the innovative
split-torque Face Gear technology for the U.S. Army's AH-64D Apache
Block III Helicopter Modernization Program.

The $53 million
contract is for production of components for 74 transmissions plus
initial spares as part of the low rate initial production phase of the
Apache Block III Program. Deliveries start in late 2010 and continue
through 2012.

The manufacturing process and equipment needed to
produce Face Gears, a fundamental component of the innovative
transmissions, are proprietary to Northstar. Face Gears, by nature of
their gear tooth geometry, presented unique manufacturing challenges to
the aerospace industry. Northstar developed a manufacturing solution
that included the design and manufacture of multi-axis CNC Face Gear
grinding machines capable of meeting the exacting aerospace standards
on a production basis.

The split-torque Face Gear transmission
initially increases power by more than 20 percent with growth
capability to 36 percent within practically the same physical operating
space as the conventional transmission. The Face Gear transmission has
only two reduction stages, compared to three in the conventional
transmission, reducing the number of parts and weight. It is also
expected to have 200% better availability.

Northstar has been
working on the Apache Block III program under a development contract to
Boeing since 1999 and will continue development work into the fourth
quarter of 2010. The current Army objective is for 690 AH-64D Apache
Block III helicopters over the next 15 to 20 years. Foreign aircraft
sales and spares could significantly increase orders for Face Gear
transmissions.

"Receipt of this purchase contract is a
significant milestone for the Apache Block III Program, Northstar and
our many employees who have contributed to the development of Face Gear
technology. Sole manufacturing rights for Face Gears will provide
Northstar with a building block for profitable growth well into the
future. Foreign sales provide additional growth opportunities," said
Glenn Hess, President and CEO Northstar Aerospace, Inc.

Northstar
Aerospace (Canada), Inc. is a subsidiary of Northstar Aerospace, Inc.
Northstar Aerospace, Inc. (www.nsaero.com) is North America's leading
independent manufacturer of flight critical gears and transmissions.
Northstar Aerospace is a public company (TSX:NAS) with operating
subsidiaries in the United States and Canada. Its principal products
include helicopter gears and transmissions, accessory gearbox
assemblies, rotorcraft drive systems and other machined and fabricated
parts. It also provides maintenance, repair and overhaul of
transmissions and drive systems. The Company's executive offices are
located in Chicago, Illinois. Its plants are located in Chicago,
Illinois; Phoenix, Arizona; Anderson, Indiana; and Milton and Windsor,
Ontario.