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Northstar Aerospace Inc. receives contract on AH-64 Apache Block III modernization

Nov. 8, 2007, Chicago, IL - Northstar Aerospace Inc.'s subsidiary, Northstar Aerospace (Canada) Inc. ("Northstar") has received a contract with The Boeing Co., Mesa, Arizona, to complete the development and flight Certification of an innovative transmission that will be used in the U.S. Army's Block III AH-64D Apache Longbow helicopter modernization program.


November 8, 2007
By Corrie

Nov. 8, 2007, Chicago, IL – Northstar Aerospace Inc.'s subsidiary, Northstar Aerospace
(Canada) Inc. ("Northstar") has received a contract with The Boeing Company,
Mesa, Arizona, to complete the development and flight Certification of an
innovative transmission that will be used in the U.S. Army's Block III AH-64D
Apache Longbow helicopter modernization program.

This contract provides for
annual funding awards over the next four years with a maximum value of more
than $26 million. Northstar received individual contracts of more than
$3 million for the past two fiscal years.
The Block III AH-64D Apache modernization program includes the
development, test and certification of drive system components. It is expected
to lead to production of transmission kits for 634 aircraft with deliveries
beginning in 2011.

The Boeing Company and the U.S. Army signed a system
development and demonstration phase contract for the program in July 2006
worth more than $600 million.
This contract will allow Northstar to complete the program development
activities including program management, manufacturing technology, and
supplier development. Northstar will also be required to manufacture initial
kits for flight certification of this transmission.
The program will be the first aerospace application of a transmission
using Face Gear technology. Face Gears, in a split-torque design, facilitate
more horsepower without the penalty of added weight.

The Boeing Company
designed and developed the Face Gear split-torque application. Northstar
developed the supporting manufacturing technology. Northstar holds
manufacturing patents for Face Gear technology.
"This contract will allow Northstar to complete the development work on
the innovative transmission technology that will be used in the U.S.
Army's Block III AH-64D Apache Longbow helicopter modernization program.

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The opportunity to support the Block III program is significant to
Northstar due to its revenue potential and longer-term value to position
Face Gear technology as the industry standard for transmission design,"
said Mark Emery, President and Chief Executive Officer, Northstar
Aerospace Inc.
(All amounts within this news release are stated in U.S. dollars.)
Northstar Aerospace Inc. (www.nsaero.com ) is North America's leading
independent manufacturer of flight critical gears and transmissions.

Northstar
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
helicopter engines and transmissions.
The company's executive offices are located in Chicago, Illinois. Its plants are located in Chicago; Phoenix,
Arizona; Stroud, Oklahoma; Anderson, Indiana; and Milton and Windsor, Ontario.


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