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Northstar Aerospace and Rolls Royce Sign Long Term Agreement

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April 27, 2006—Northstar Aeropsace was awarded a seven-year contract by Rolls-Royce Corp. to provide machining for gearboxes and related parts used in commercial and military aircraft. The contract is estimated to provide $8 million in annual revenue to Northstar once in full production.

Northstar is establishing a facility in Anderson, IN to function as a specialized feeder plant for operations in Anderson, Indiana.

The Rolls-Royce facility in Indianapolis is the company's largest manufacturing operation in North America and designs, develops and manufactures engines and components for various fixed and rotary wing aircraft including the Joint Strike Fighter, Embraer regional jets, Cessma Citation X corporate jet, V-22 tilt-rotor helicopter and other light single and twin-engine helicopters.

"This contract is the latest in our growing relationship with Rolls-Royce. The proximity of a facility in Anderson provides the opportunity for Northstar to become a primary supply partner with Rolls Royce, specializing in gearboxes and related components for Rolls Royce engines used in defense and commercial applications," says Mark Emery, Northstar Aerospace's president and CEO.

According to Northstar's press release, the new facility will employ 40 people, mostly CNC machinists by late 2007. The company estimates beginning to supply Rolls Royce within the next 90 days and full production is estimated in 2008.