IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re Northstar Aerospace (USA) Inc., et al.1 Debtors.

Re: Docket No. 119 NOTICE OF NO QUALIFIED BIDDERS, CANCELLATION OF AUCTION AND INTENT TO PRESENT PURCHASERS ASSET PURCHASE AGREEMENT AT THE SALE HEARING PLEASE TAKE NOTICE that, pursuant to the Order (A) Authorizing and Approving the Joint Cross-Border Bidding Procedures, (B) Authorizing and Approving a Break Up Fee and Expense Reimbursement, (C) Approving the Notice Procedures, (D) Approving the Assignment Procedures, and (E) Setting a Date for the Sale Hearing [D.I. 119] (the Bid Procedures Order),2 entered on June 27, 2012, (i) the deadline for submitting bids for the US Purchased Assets was July 13, 2012 (the Bid Deadline), and (ii) in the event a Qualified Bid was received, an auction would be held on July 17, 2012 at 10:00 a.m. (the Auction). PLEASE TAKE FURTHER NOTICE that no Qualified Bids were received prior to the Bid Deadline. As such, the Auction will not be held and is hereby cancelled. Chapter 11 Case No. 12-11817 (MFW) (Jointly Administered)

The Debtors and the last four digits of their respective tax identification numbers are: Northstar Aerospace (USA) Inc. (XX-XXX4389), Northstar Aerospace (Chicago) Inc. (XX-XXX1441), D-Velco Manufacturing of Arizona, Inc. (XX-XXX5660) and Derlan USA Inc. (XX-XXX6924). The address of Northstar Aerospace (USA) Inc. and Northstar Aerospace (Chicago) Inc. is 6006 West 73rd Street, Bedford Park, Illinois 60638. The address of DVelco Manufacturing of Arizona, Inc. and Derlan USA, Inc. is 401 South 36th Street, Phoenix, Arizona 85034.Velco Manufacturing of Arizona, Inc. (XX-XXX5660) and Derlan USA Inc. (XX-XXX6924). The address of Northstar Aerospace (USA), Inc. and Northstar Aerospace (Chicago) Inc. is 6006 West 73rd Street, Bedford Park, Illinois 60638. The address of D-Velco Manufacturing of Arizona, Inc. and Derlan USA Inc. is 401 South 36th Street, Phoenix, Arizona 85034. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to the in the Bid Procedures Order.

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PLEASE TAKE FURTHER NOTICE that, pursuant to the Bid Procedures Order, the Debtors intend to present the Purchaser and related Asset Purchase Agreement for consideration at the Sale Hearing scheduled for July 24, 2012 at 4:00 p.m. (ET). Dated: July 16, 2012 Wilmington, Delaware BAYARD, P.A. /s/ Justin R. Alberto Charlene D. Davis (No. 2336) Justin R. Alberto (No. 5126) 222 Delaware Avenue, Suite 900 Wilmington, Delaware 19801 Telephone: (302) 655-5000 Facsimile: (302) 658-6395 Email: cdavis@bayardlaw.com jalberto@bayardlaw.com -andRobert E. Richards SNR DENTON US LLP 233 South Wacker Drive, Suite 7800 Chicago, Illinois 60606 Telephone: (312) 876-8000 Facsimile: (312) 876-7934 Email: robert.richards@snrdenton.com Scott E. Koerner David Pisciotta SNR DENTON US LLP 1221 Avenue of the Americas New York, New York 10020 Telephone: (212) 768-6700 Facsimile: (212) 768-6800 Email: david.pisciotta@snrdenton.com scott.koerner@snrdenton.com Attorneys for the Debtors and Debtors-in-Possession

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