$2.2 MILLION CANADIAN GOVERNMENT FINANCING FOR NORTHSTAR PROJECT July 9, 2002 -- Vancouver, Canada -- NORTHSTAR ELECTRONICS, INC. (OTCBB: NEIK) reports that the Canadian governments Atlantic Innovation Fund will be providing $2,200,000 of f

NORTHSTAR ELECTRONICS, INC. (OTCBB: NEIK) reports that the Canadian governments Atlantic Innovation Fund will be providing $2,200,000 of financing for development of a new line of advanced products applying Northstars innovative subsea communications technology. This AQUACOMM project will incorporate new leading edge technologies into our core sonar and underwater wireless communications technology and will result in broader commercial applications," noted Dr. Wilson Russell, Northstar Electronics president.

July 9, 2002 -- Vancouver, Canada -- NORTHSTAR ELECTRONICS, INC. (OTCBB: NEIK) reports that the Canadian governments Atlantic Innovation Fund will be providing $2,200,000 of financing for development of a new line of advanced products applying Northstars innovative subsea communications technology.

This AQUACOMM project will incorporate new leading edge technologies into our core sonar and underwater wireless communications technology and will result in broader commercial applications," noted Dr. Wilson Russell, Northstar Electronics president. The first application was the NETMIND system which has gained increasing market share in the worlds commercial fishing industry over the past three years."

This financing is being provided by the Innovation Fund to the Companys wholly owned subsidiary, Northstar Technical Inc., under a Letter of Intent. The funds are provisionally repayable based on the revenue stream from the new AQUACOMM products. Additional financing for the $3,700,000 development project will come from a combination of scientific research tax credits, equity investment, retained earnings and a research grant.

AQUACOMM is Northstars second generation sonar technology and products program. The latest subsea technologies in communications, battery technology, sonar and power management will be incorporated into prototypes of new products in the fishing industry and to new applications in other industrial sectors such as defense, offshore oil and gas, oceanography, marine transportation and environmental.

Targeted applications: in Defense, secure, covert wireless communications; in Offshore Oil and Gas, mooring line monitoring, precise underwater position measurement, flowline/pipeline hook-up control, remote control of subsea wellheads; in Oceanography, Autonomous Underwater Vehicle (AUV) subsystems; in Marine Transportation, remote seaway monitoring; and in Environmental, remote environmental monitoring.

ABOUT NORTHSTAR ELECTRONICS, INC.

Northstar Electronics, Inc. is the parent company of Northstar Network Ltd. and Northstar Technical Inc. Northstar Network carries out design, manufacturing and system integration for defense, aerospace and homeland security. Northstar Network has a Memorandum of Understanding with Lockheed Martin Canada to be one of their partners in pursuit of the US $2 billion Canadian Navys Maritime Helicopter Project and Memoranda of Interest signed with five different major US contractors on the $200B US Joint Strike Fighter Program. Northstar Technical, in addition to developing and manufacturing wireless communications for underwater applications, carries out defense contracting.

For further information, please contact:

Mr. Rich Kaiser                         or   Mr. Robert Rosenblat/ Mr. David OBrien                      
YES International                           Northstar Electronics, Inc.                        
Toll Free: 1-800-631-8127      Toll Free: 1-877-685-0364

Virginia Beach, Virginia               Vancouver, British Columbia                                
yes@yesinternational.com      nei@telus.net
www.yesinternational.com      www.northstarelectronics.com
            

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 the 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 Companys actual results could differ materially from those anticipated in the forward-looking statements as a result of certain internal and external factors.