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Statement from Northstar Healthcare



Toronto, ON and Houston, TX, February 18, 2010 - Northstar Healthcare Inc. (TSX:NHC) today responded to a news release issued on February 17, 2009 on behalf of Mr. Brad Kovnat. The release indicated that Mr. Kovnat has asked a Texas court to appoint a receiver for the Palladium for Surgery-Houston and other Northstar subsidiaries. Northstar believes that Mr. Kovnat's claim is meritless and is subject to binding arbitration. Northstar intends to move to dismiss the lawsuit and ask the court to refer the matter to binding arbitration.



Northstar's understanding is that Mr. Kovnat -- a former employee of the company -- is a relative of Dr. Donald Kramer. Northstar is currently in arbitration with Dr. Kramer, the founder of Northstar, relating to claims made by the company under agreements relating to Northstar's acquisition of its interests in the Palladium for Surgery-Houston. Northstar noted that Mr. Kovnat today owns less than one half of one percent of the equity in the facility.



About Northstar Healthcare Inc.

Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites.



Northstar was founded and sponsored by Donald Kramer, M.D. and Stewart A. Feldman. Mr. Feldman also served as the co-principal and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.



Forward-looking statements

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com <http://www.northstar-healthcare.com/>; or at www.sedar.com <http://www.sedar.com/>; . There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.



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Philip Koven
Investor Relations
Northstar Healthcare Inc.
[phone] Ext. 235
[e-mail]