Northstar Aerospace Receives Expanded Credit Facility

Northstar Aerospace Inc. announced today that Northstar and its subsidiaries have entered into a new, expanded credit agreement with JP Morgan Chase Bank, N.A. and Fifth Third Bancorp, as arranged by J.P. Morgan Securities Inc.

The new $80 million credit agreement includes a $20 million term loan and a revolving credit facility with maximum borrowing up to $60 million. The terms of the agreement provide for the opportunity to increase the available borrowings by $25 million, if need arises. The term loan is to be repaid at a rate of $1 million per quarter beginning on September 30, 2007. Borrowings under these loans will be at a lower rate than the existing facility and are subject to fewer financial covenants. Proceeds from this facility will be used to replace and repay the amounts outstanding under the existing facility that has maximum borrowings of $64 million.

In addition, Northstar received a commitment from Fifth Third Bank to provide up to $10 million of credit to finance equipment needs in 2007 through capital leases. This commitment follows the $5 million equipment lease line used in 2006 with Fifth Third Bank to finance equipment at Northstar's Chicago facility to respond to increasing demand on the CH-47 Chinook program.

"These facilities provide Northstar with the flexibility and opportunity to accelerate capital investment and meet increased working capital needs necessary to keep pace with a backlog that has grown more than 50 percent in the last two years. We are delighted to have capacity of up to $115 million available from these highly regarded international financial institutions," said Mark Emery, President and Chief Executive Officer, Northstar Aerospace Inc. -- www.cnxmarketlink.com