Newsletter

March 10, 2007

Volume VIII, Issue 21

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To OTC Journal Members:

Nighthawk Powers Down DaimlerChrysler

Nighthawk has not been in the news of late, and in lieu of the newly discovered fear in the stock market, NIHK has come back to a very low risk entry point just as the company is delivering some rather big news.

Why is this news so big?- not because of the dollar volume of the order- it's because it is a new application into a previously unreached market that could snowball into something much bigger. It happened earlier this year with the Verizon Wireless cell tower installations, and now it is happening in the manufacturing sector with a huge name.- The venerable Mercedes Benz.

DaimlerChrysler has a plant in Trenton, Michigan The 2.1 million square feet plant covers 136 acres- that is absolutely enormous. Air is circulated by hundreds of massive fans.

DaimlerChrysler has chosen the Nighthawk solution to remotely switch the fans on and off as a power saving measure. Equally as important- the sale originated with their partners at American Messaging- which gives us reason to believe the relationship is finally beginning to pay off.

NIHK doubled in size from 2005 to 2006. Based on the business flow for 2007, it is highly likely they will at least double in size again in 2007- but it could be much greater growth.

In 2006 NIHK had a couple of major projects in the pipeline, none of which came to fruition. Fast forward to 2007- NIHK has about 10 major home run possibilities in the project folder. The more they have, the more likely a couple will come home to roost.

Continuing to double in size year over year helps mitigate your risk- the major home run opportunities provide some big upside.

NIHK has about 80 million shares I&O- at $.07 a $5.6 million value and $2 to $3 million in annual sales. I have always felt the stock should trade up into the $.12 to $.13 range- now I am convinced the stock has a chance of finding its way into the $.25 range- they will need to deliver something major, but the possibility is there.

In the interim, the newly found climate of fear in the market has produced a superb entry level to load up or reload NIHK. The chart shows the stock's movement in 2007- as you can see, it is now camped on a nearly perfect 61.8% retracement of this year's big move.

If you love a good old fashioned penny stock with a great story and upside potential, this is a great candidate for your risk capital.

Here is the complete text of today's release for your review:

Press Release Source: Nighthawk Systems, Inc.

DaimlerChrysler to Install Nighthawk Systems Units

Friday March 9, 4:05 pm ET

Units to Help Manage Heat in Trenton Engine Plant

SAN ANTONIO--(BUSINESS WIRE)--Nighthawk Systems, Inc. (OTCBB:NIHK - News), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that it has received an initial order for customized wireless power control units to be used by DaimlerChrysler to control the venting of heat in their Trenton, Michigan engine plant. The 2.1 million square feet plant covers 136 acres and contains hundreds of exhaust fans that control the venting of heat from the plant. DaimlerChrysler approached Nighthawk with the assistance of American Messaging, asking for help with remotely controlling the fans. Nighthawk is developing custom units that will be installed at the plant, allowing DaimlerChrysler to wirelessly control the exhaust fans from almost anywhere inside or outside of the plant.

The Nighthawk units will eliminate expensive wiring costs for DaimlerChrysler, and will enable plant officials to turn on and off the fans remotely in order to balance the amount of heat exiting the plant. This allows DaimlerChrysler to better manage the environment within the plant based on external factors such as weather as well as on internal factors, such as lighter product loads during holiday schedules.

H. Douglas Saathoff, Nighthawk's Chief Executive Officer, stated, "I'm extremely pleased with the opportunity to assist DaimlerChrysler with this opportunity, and look forward to potentially building a larger relationship with them. The Nighthawk name is becoming more recognized as we assist more and larger companies with their control needs. I'm also extremely pleased that our partnership with American Messaging has fostered this opportunity. Their existing relationship with DaimlerChrysler, as well as with Nighthawk, enabled this deal to come together. Our relationship with American Messaging is paying off as they expand our sales reach with their nationwide network of sales personnel that have existing relationships with enterprise customers that can benefit from using our products."

In September 2006, Nighthawk announced that they and American Messaging had agreed to join forces to provide telemetry solutions to enterprise customers utilizing American Messaging's wireless network. American Messaging is the second-largest paging company in the United States with approximately 1.5 million customers, providing network coverage in 98 of the top 100 markets and in all 50 states.

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.

Forward-Looking Statements

Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

Contact:

Nighthawk Systems, Inc., San Antonio
Doug Saathoff, 877-7-NIGHTHAWK, ext. 701
dsaathoff@nighthawksystems.com

Source: Nighthawk Systems, Inc.

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