Northstar Aerospace, Inc. completes sale of engine repair and overhaul business



    
    LISTED: TSX
    SYMBOL: NAS                    Common Shares
    

    CHICAGO, May 28 /CNW/ - (All amounts within this news release are stated
in U.S. dollars) Northstar Aerospace, Inc. ("Northstar") has sold the assets
and certain liabilities of its subsidiary, Turbine Engine Service Group (TESG)
of Stroud, Oklahoma, for gross proceeds of approximately $9.35 million,
including an estimated adjustment for working capital, to Mint Turbines LLC.
The net proceeds from the sale will be used to reduce Northstar's outstanding
debt obligations, including satisfying the $7.5 million repayment required on
July 31, 2009.
    Northstar announced plans to divest TESG, a repair and overhaul business
specializing in Pratt & Whitney PT6 turboprop engines, in November last year
as part of a larger strategy to focus on its core business of manufacturing
gears and transmissions for customers in the defense and commercial aerospace
industry.
    TESG has 43 employees and generated revenue of more than $15 million in
2008.
    "While we will miss our relationship with TESG, this transaction allows
Northstar to focus on our core business, improve our balance sheet and satisfy
our bank commitments. I'd like to thank all of the employees at TESG for their
service to Northstar and wish them all the best in the future," said Glenn
Hess, President and Chief Executive Officer, 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 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.

    %SEDAR: 00002555E




For further information:

For further information: Craig Yuen, Vice President and Chief Financial
Officer, (708) 728-2121, or cyuen@nsaero.com

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Northstar Aerospace

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