SOURCE: Market Pulse

October 18, 2007 08:30 ET

Market Pulse Breaking News Alert for Thursday, October 18, 2007: NIHK -- Nighthawk Systems Receives Significant Order for IPTV Product!

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

ATLANTA, GA--(Marketwire - October 18, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Nighthawk Systems, Inc. (OTCBB: NIHK), Intel Corp. (NASDAQ: INTC), Yahoo! Inc. (NASDAQ: YHOO) and eBay Inc. (NASDAQ: EBAY).

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 de partments 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 received an order for approximately $480,000 of its MediaPro IP3000HD IPTV set-top boxes! Investors should be watching this one closely!

Nighthawk Systems, Inc. (OTCBB: NIHK), a leading provider of intelligent wireless and IP-based products and solutions, announced today that it has received an order for approximately $480,000 of its MediaPro IP3000HD IPTV set-top boxes. This order comes on the heels of Nighthawk's purchase of the set-top box operations of Eagle Broadband announced earlier this week. This order adds to a backlog of over $400,000 in purchase orders for set-top boxes already in-house when the acquisition was made.

H. Douglas Saathoff, Nighthawk's Chief Executive Officer, stated, "Receiving this order so quickly after the acquisition illustrates how the set-top box business can quickly and positively impact the overall financial results at Nighthawk. We have a technologically superior product for the hospitality industry, and a growing reputation within the marketplace. We look forward to a steady and growing stream of orders and cash flows from this business that will complement our growing power control business."

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.

As disclosed in Nighthawk's Form 8-k filing with the Securities and Exchange Commission last Friday, Nighthawk purchased the set-top box assets of Eagle Broadband on October 11, 2007 for $4.75 million. The transaction was facilitated by a $6 million sale of unregistered Series B Convertible Preferred Stock and Warrants. 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.

Nighthawk previously noted the following expected impact from the acquisition:

--  Strengthening of the Nighthawk 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 the company's 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 the company expects
    to receive. Nighthawk received 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.  The company acquires an experienced team of
    hardware and software engineers as part of the 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.
    

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.

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: Intel Corp. (NASDAQ: INTC), Yahoo! Inc. (NASDAQ: YHOO) and eBay Inc. (NASDAQ: EBAY).

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