NORTHSTAR AEROSPACE INC. INCREASES REVENUE, OPERATING INCOME IN THIRD QUARTER

LISTED:    TSX
SYMBOL:  NAS  Common Shares

CHICAGO, Nov. 9 /CNW/ - (All amounts are stated in U.S. dollars.) Northstar Aerospace, Inc. (the "Company") today reported revenue from continuing operations for the three months ended September 30, 2010 of $50.5 million compared to $48.1 million in the same period of 2009.  

Defense revenue was $38.8 million for the three months ended September 30, 2010, consistent with the same period of 2009.  Defense revenue was negatively impacted due to resources being used to start up initial production of the Apache Block III program.  Commercial revenue in the three months ended September 30, 2010 was $11.8 million compared to $9.3 million in the same period of 2009.  The increase was the result of higher sales on the Rolls Royce and CF-34 spares programs.

Margin as a percentage of revenue remained relatively constant at 20.5% in the three months ended September 30 compared to 20.8% in the same period in 2009.  Defense margin was 22.0% in the three months ended September 30, 2010 compared to 23.7% in the same period of 2009 primarily due to product mix with a higher proportion of revenue attributed to the lower margin Apache Main Transmissions and F-22 purchased parts sales.  Commercial margin increased to 15.8% in the three months ended September 30, 2010 compared to 9.0% in 2009, primarily due to increased spares volume.

Selling, general and administrative ("SG&A") expenses were $4.7 million (9.3% of revenue) for the three months ended September 30, 2010.  SG&A expenses were $4.9 million (10.2% of revenue) for the same period last year.  The year-on-year decrease was due to lower outside services fees in 2010.

Income from continuing operations for the three months ended September 30, 2010 was $1.0 million or $0.03 per share, compared to a loss of $0.4 million or $0.02 per share in the same period in 2009. 

As previously disclosed, the Company sold the net assets of Turbine Engine Service Group, Inc. in May 2009. Proceeds from the transaction were subject to a working capital adjustment resulting in a $308 loss recorded on the discontinued operations, net of taxes for the three months ended September 30, 2010.  As a result of this adjustment, net income including discontinued operations, was $0.7 million or $0.02 per share during the quarter compared to a loss of $0.4 million, or $0.02 per share in 2009.    

The Company's backlog was $404 million at September 30, 2010 compared to $440 million at December 31, 2009.  The decrease in the backlog is the result of a reduction in defense orders.

Glenn Hess, President and Chief Executive Officer, stated:

"Results for the quarter continue a trend of revenue and earnings improvements, which we expect to continue as improved processes take hold and new equipment become operational.  Noteworthy, last quarter the Apache Block III Program achieved a significant milestone with the U.S. Government approval of the Low Rate Initial Production phase of the program.  Therefore, resources have been allocated to support the initial ramp-up of production on the Apache Block III program that would have otherwise produced additional volume and contribution from other programs."

The voting results from the Annual and Special Meeting of Shareholders on May 26, 2010 were not filed.  There were 3,468,752 shares of the Company's outstanding shares represented at the meeting.  Of those shares, 96% voted in favor of the election of the Directors noted in Management Information Circular dated April 16, 2010; 99% voted in favor of the appointment of PricewaterhouseCoopers LLP as the Company's external auditors; and 95% voted in favor of Amended Share Option Plan, also included in the Management Information Circular.  A copy of the report of voting results is now available on SEDAR at www.sedar.com. 

A more detailed discussion of the Company's financial results for the three and nine months ended September 30, 2010 is contained in Management's Discussion and Analysis, including comments on the comparability of results between the current and prior year and is available on www.sedar.com and on the Company's website at www.nsaero.com.

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 helicopter engines and transmissions.  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.

Forward Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainty. All statements, other than statements of historical facts included in this press release, including, without limitation, those regarding the Company's financial position, business strategy, projected costs, including estimated environmental remediation costs, and plans, projected revenues, objectives of management for future operations, and certain other items may be or include forward-looking statements. Forward-looking information contained herein is based upon a number of assumptions regarding the Canadian, U.S. and global economic environment, and local and foreign government policies and actions. Actual future results of the Company may differ materially depending on a variety of factors, including production rates, timing of product deliveries, Canadian, U.S. and foreign government activities, volatility of the market for the Company's products and services, worldwide political stability, factors that result in significant and prolonged disruption to commercial air travel worldwide, U.S. military activity, domestic and international economic conditions, and other political and economic risks, including currency risks, and uncertainties.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct.  Important factors that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements"), are included in the Company's Consolidated Financial Statements for the Years Ended December 31, 2009 and 2008 - Management's Discussion and Analysis - Risks and Uncertainties, and in the Company's Annual Information Form filed on March 31, 2010, under the heading of Risks and Uncertainties.  All information contained in this press release and subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by the Cautionary Statements.  The Company disclaims any intentions or obligation to update or revise any forward looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law.

NORTHSTAR AEROSPACE INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
For the three months ended September 30, 2010
prepared in accordance with Canadian GAAP
(thousands of U.S. dollars except per share amounts)

Summary of Quarterly Information

	Q3 2010		Q2 2010		Q1 2010		Q4 2009		Q3 2009		Q2 2009		Q1 2009		Q4 2008
Revenues	$	50,529	$	48,132	$	52,603	$	53,717	$	48,098	$	46,871	$	45,233	$	-
Gain (loss) from unusual items^(1)		-		-		(1,943)		(273)		-		(4,135)		5,990		(1,632)
Net income (loss)^(2)		727		1,099		(454)		3,662		(411)		(5,187)		5,437		(10,427)
Income (loss) per share: basic & diluted^(2)		0.02		0.04		(0.02)		0.12		(0.01)		(0.17)		0.18		(0.35)
^(1) includes environmental remediation and litigation provisions, restructuring charges for severance and termination, plant shut down costs and gain on sale of investments.
^(2) includes discontinued operations

Summary Balance Sheet Information

	September 30, 2010	December 31, 2009
Working capital	$45,688	$37,408
Total assets	$159,364	$153,743
Total debt	$58,958	$52,394
Shareholders' equity	$30,225	$27,736

The Consolidated Financial Statements for the three and nine months ended September 30, 2010 and related MD&A are available on our website at:  www.nsaero.com and on SEDAR.

%SEDAR: 00002555E

For further information:

Greg Schindler, Chief Financial Officer
[phone]