SOURCE: Market Pulse

October 15, 2007 08:30 ET

Market Pulse Breaking News Alert for Monday, October 15, 2007: NIHK -- Nighthawk Systems Announces Major Purchase of IPTV Assets/Technology and Purchase Expected to Significantly Bolster Revenues and Cash Flows!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Market Pulse.

ATLANTA, GA--(Marketwire - October 15, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Nighthawk Systems, Inc. (OTCBB: NIHK), Biogen Idec Inc. (NASDAQ: BIIB), Apple Inc. (NASDAQ: AAPL) and Ford Motor Co. (NYSE: F).

Investors need to be watching Nighthawk Systems, Inc. (OTCBB: NIHK) this AM! Nighthawk Systems is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet service providers and fire departments in over 40 states. Nighthawk's products also enable custom message display, making them ideal for use in traffic control and emergency notification situations. Its products include CEO700 for remote power connect/disconnect of customers by electric utilities; PT1-LC, designed for load control programs; FAS8 used in firehouse automation; and EA1, which is used for in-building alerts. In addition, the company offers AL100 for remote public alerting; NH100 for rebooting or on/off applications to a single device; and NH8 for rebooting or on/off applications for up to eight electrical devices from a single unit. It serves electric utilities, traffic control, computer systems, commercial lighting, and irrigation markets primarily in the United States. Nighthawk announced a joint marketing agreement with American Messaging in 2006 that facilitated the company's transition into a complete solution provider. This venture provided access to 1.5 million customers. Its new network has been fortified through acquisitions from telecom giants Verizon Wireless and AT&T (formerly SBC Communications). NIHK has had numerous consecutive quarters of solid revenue under its belt and second quarter 2007 marked an all-time high in sales orders. NIHK is ramping up for a very bright future in the M2M (machine-to-machine) communications industry, forecasted by research firm IDATE to potentially reach $270 billion by 2010. NIHK is poised to become a significant player in the wireless telemetry and automation industry! NIHK just had excellent news out in a press release before today's opening bell announcing that it has purchased the IPTV set-top box business assets of Eagle Broadband! The purchase is expected to significantly bolster revenues and cash flows at Nighthawk based on existing purchase orders for high-definition MediaPro IP3000HD set-top boxes with a leading hospitality solutions provider! IPTV is booming in the hospitality industry! Investors should be watching this one closely!

Nighthawk Systems, Inc. (OTCBB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that it has purchased the IPTV set-top box business assets of Eagle Broadband. The purchase is expected to significantly bolster revenues and cash flows at Nighthawk based on existing purchase orders for high-definition MediaPro IP3000HD set-top boxes with a leading hospitality solutions provider. Under terms of the purchase, Nighthawk assumes responsibility for production on a contract under which the customer has forecasted purchases that could generate in excess of $6 million in revenues to Nighthawk over a period of just over one year.

As disclosed in Nighthawk's Form 8-k filing with the Securities and Exchange Commission last Friday, the assets were purchased for $4.75 million. The transaction was facilitated by a $6 million sale of unregistered Series B Convertible Preferred Stock and Warrants to Dutchess Private Equities Fund, Ltd. Under terms of the sale, the Preferred Stock is not convertible for a period of one year, and is redeemable solely at Nighthawk's option.

H. Douglas Saathoff, Nighthawk's Chief Executive Officer, commented, "This is a huge event for Nighthawk Systems. This funding and subsequent acquisition of the set-top box business present Nighthawk with an incredible opportunity to take a quick and large step forward in creating additional value in the Company. Here are some of the near-term benefits that I expect to realize from this transaction:

--  Strengthening of our balance sheet through the investment of $6
    million and the purchase of the assets. The investment in Nighthawk will
    result in a return to a positive net equity position for the Company,
    enhancing our ability to attract larger customers and larger contracts for
    both traditional Nighthawk control products and set-top boxes.
--  Enhanced revenues and cash flows from orders that already exist for
    the set-top box products, as well as future orders that we expect to
    receive. Nighthawk receives existing purchase orders that, when completed,
    will produce revenues in excess of $400,000.  Additional orders are also
    expected, which will supplement Nighthawk's existing, growing revenue base
    for control products.
--  Lower costs due to higher production volumes. All Nighthawk products,
    including set-top boxes, utilize printed circuit boards. Higher volume
    production runs should lead to lower per unit costs.
--  Integration of IP-based technology into Nighthawk's traditional,
    wireless control products.  We acquire an experienced team of hardware and
    software engineers as part of this transaction.
--  Opportunities to sell traditional Nighthawk products into set-top box
    markets. Set-top boxes are endpoint devices on complex networks that often
    require the integration of rebooting or power control solutions.
    

To summarize, I believe that the acquisition of industry-leading technology and existing revenue-generating opportunities, financed by the sale of unregistered equity securities, provides Nighthawk with a significant near-term opportunity to enhance the value of the Company. I believe this acquisition will provide operational and financial synergies for a long time to come."

About Nighthawk Systems, Inc.

Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet service providers and fire departments in over 40 states. Nighthawk's products also enable custom message display, making them ideal for use in traffic control and emergency notification situations.

The MediaPro IP3000HD is a high-definition set-top box with a compact footprint and quiet, fan-less design that delivers exceptional streaming video quality for both NTSC and PAL broadcast standards. Capable of supporting a variety of leading middleware and video-on-demand systems, including Java Script capabilities, the MediaPro IP3000HD platform delivers the advanced content system security and digital rights management (DRM) needed by various industries and markets, most notably the hospitality industry.

Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the company's website at www.nighthawksystems.com.

Stocks in the news and acting well as of late include: Biogen Idec Inc. (NASDAQ: BIIB), Apple Inc. (NASDAQ: AAPL) and Ford Motor Co. (NYSE: F).

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