Market Pulse Breaking News Alert for Friday, May 16, 2008: NIHK - Nighthawk Systems Reports Strong Financial Results and First Quarter Revenues Increase 290%!

Market Wire, May, 2008

Market Pulse News Alert for this AM, Stocks to Watch are: Nighthawk Systems, Inc. (OTCBB: NIHK), CNET Networks Inc. (NASDAQ: CNET), Yahoo! Inc. (NASDAQ: YHOO) and National Coal Corp. (NASDAQ: NCOC).

Investors need to be watching Nighthawk Systems, Inc. (OTCBB: NIHK) this AM! Nighthawk Systems, Inc. is a leading provider of intelligent devices and systems that allow for the centralized, on-demand management of assets and processes. Nighthawk products are used throughout the United States in a variety of mission-critical applications, including remotely turning on and off and rebooting devices, activating alarms, and emergency notification, including the display of custom messages. In October 2007, the Company purchased a Set-Top Box business (discussed below). Nighthawk's IPTV set-top boxes are utilized by the hospitality industry to provide in-room standard and high definition television and video on demand. So now Nighthawk Systems utilizes both wireless and IP-based technologies in its products! Nighthawk products can be found in over 40 states and are being used for mission-critical applications within electric utilities, fire departments, departments of transportation and even Offices of Emergency Management. These are large markets with huge potential. Now Nighthawk has added the Set-Top Box business which targets the millions of hotel rooms being upgraded for high-definition IPTV and video-on-demand services! In 2009, all television services must be provided in high definition, so Nighthawk looks to be in the right market at the right time! Nighthawk announced quarter over quarter growth throughout 2007, and this morning announced that 2007 revenues exceeded 2006 revenues by 84%! The Company also recently obtained funding of $6 million which has allowed the Company to achieve positive shareholders equity. Now the Company enters 2008 with critical mass -- a growing revenue base and a better balance sheet. Management has said that they expect the revenue growth to accelerate and margins to improve as they achieve economies of scale associated with larger sales and production volumes. 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 at yesterday's closing bell announcing strong financial results and that first quarter revenues increased 290% over the previous year period! The company also said it expects significant revenue contributions in 2008 from a number of initiatives introduced in 2007! Investors should be watching this one closely!

Nighthawk Systems, Inc. (OTCBB: NIHK), a leading provider of wireless and IP-based control devices and solutions, today reported financial results for its first quarter ended March 31, 2008. The Company accomplished considerable progress during its first quarter of 2008, achieving growth in its core products, accelerating growth in its newly acquired set-top box business, and launching new initiatives in fault-tolerant control systems for mission critical monitoring applications, while continuing to lower overall costs.

The Company reported revenues for the first quarter of $826,000, a 290 percent increase over the first quarter of 2007 revenue of $212,000 and an increase of approximately 13 percent from the fourth quarter 2007 revenue of $735,000. The increase in first quarter revenues predominately reflects the inclusion of the set-top box business in 2008, which represented 62 percent of revenues for the period. The Company shipped 2,239 set-top box units during the quarter, has a current backlog of approximately 3,300 units and expects to experience an acceleration in the frequency and magnitude of orders for these units throughout 2008. The Company also continued its trend of year-over-year growth of its remote power control business, driven by a 125% increase in product sales to electric utilities and the Company's initial deliveries of custom power control units to a provider of photo traffic and electronic toll enforcement services.

The increase in production, combined with reductions in operating costs and interest charges, led to a reduction in the net loss reported from $1.1 million in the first quarter of 2007 to $770,000 in the first quarter of 2008. After giving consideration to accumulated dividends on preferred stock of $180,000, the net loss applicable to common stockholders was $950,000 ($0.01 per share) in the 2008 period as compared to $1.1 million ($0.01 per share) in the 2007 period.

"While Nighthawk has in the past viewed the utility market as its largest source of revenues and anticipates an acceleration of the growth from this business in 2008, we also expect significant revenue contributions in 2008 from a number of initiatives introduced in 2007. The newly acquired set-top box product line will be a major contributor to the near-term growth of the Company, and we expect significant growth this year from sales of our power control products into new, mission-critical applications," commented Doug Saathoff, CEO of Nighthawk Systems, Inc. "While our operating costs have been right-sized, we anticipate material improvement in our gross margins during the remainder of 2008 through both improvements to our manufacturing process as well as increased contract volumes. Additionally, we intend to continue making meaningful improvements to our balance sheet over the remainder of the year as we move towards generating positive cash flows by year end."