Newsletter

October 10, 2006

Volume VII, Issue 78

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To OTC Journal Members:

Nighthawk Systems (OTC BB: NIHK); American Messaging Delivers

Last month I reported on an exciting development concerning NIHK- for those who follow the story, you know this little penny stock made a four fold move last winter when the company announced Verizon Wireless would start marketing their products.

Their product line allows for remote switching on and off of any electrical device. The technology works over pager networks, and utilities have taken a major interest. NIHK offers significant cost savings to utilities who routinely have to turn power on and off at many different locations.

The stock traded from its current $.03 level all the way to $.16 last winter after the Verizon deal was announced.

Shares of NIHK did a complete round trip back to their original starting point- Why?- Because no concrete sales ever materialized out of the Verizon relationship.

Just last month we learned why the Verizon relationship never yielded any concrete results- as it turns out, the paging division of Verizon Wireless was on the block- it was for sale. American Messaging, the second largest paging company, bought it.

We also learned the relationship between NIHK and American Messaging was improved over the Verizon arrangement- more incentives have been built in for the sales force.

The stock has been hanging around in the $.03 to $.04 range for sometime. There was a little move over $.04 last month when the American Messaging relationship was announced, but not much concrete movement north.

I am looking for a repeat of last winter's four fold move right now, but this time it needs to be predicated on real sales coming through American Messaging.

Today, the first contract with the help of American Messaging was inked. According to the press release, El Paso Electric has placed an additional, larger order for Nighthawk’s CEO700 remote power disconnect units. This utility has decided to go forward with a program using NIHK's solution combined with American Messaging's network.

This is exactly what I wanted to see. Here's what investors will be looking at:

There's last January huge move circled in green. The subsequent lack of new sales combined with the summer sell off put the stock right back where it started from.

Now the company is back on track, and starting to announce sales coming out of what was supposed to be the Verizon Wireless relationship. It is now American Messaging.

I spoke with Doug Saathoff, CEO, recently. He told me he felt sales would start ramping up in the Fall as utilities started to spend some capital on improving their infrastructure. In addition, they believe new sales could also start to materialize out of some different industry groups that have the need for remote power switching.

I still believe this stock is a great little speculation at this level. Own it today up to $.045. Sell if it goes to either $.03 or $.10, the latter of course being preferable.

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

Nighthawk Systems Receives Larger Order from El Paso Electric

Business Wire via COMTEX

Oct 10, 2006 4:01:48 PM

SAN ANTONIO, Oct 10, 2006 (BUSINESS WIRE) --

Nighthawk Systems, Inc. (OTCBB:NIHK), a leading provider of intelligent wireless power control and emergency notification products, announced today that El Paso Electric has placed an additional, larger order for Nighthawk's CEO700 remote power disconnect units, which will operate on the American Messaging wireless network. El Paso Electric has chosen to move forward with their ongoing remote disconnect program utilizing the Nighthawk Systems-American Messaging partnership.

Nighthawk's CEO700 gives electric utilities the ability to remotely disconnect and reconnect power to residential electric meters, saving them significant time and money over the traditional manual disconnect method requiring field personnel. Last month, Nighthawk Systems and American Messaging announced they had strengthened their joint marketing agreement to take advantage of their core competencies and provide the best wireless remote control solutions possible to their customers.

"We are focused on providing our customers with the most dependable one-way local and nationwide paging services in the United States," said American Messaging President & COO, Dave Andersen. "El Paso Electric has been utilizing our network for their traditional paging needs for 10 years. We are very happy that El Paso Electric chose to use the same reliable paging network for their remote disconnect program utilizing the Nighthawk CEO700."

H. Douglas Saathoff, Nighthawk's CEO, stated, "El Paso Electric, like most utilities, has identified a growing need to implement a remote connect/disconnect program to better service its customers and to save money. Reliable access to our units was a key factor in continuing to move forward with El Paso Electric. Simply put, customers will not deploy on an ongoing basis if they cannot count on access to our units. This sale is a great example of how we expect team selling with American Messaging to accelerate the rate at which Nighthawk can provide reliable, ongoing solutions to our customers."

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.

SOURCE: Nighthawk Systems, Inc.

Nighthawk Systems, Inc., San Antonio Doug Saathoff, 877-7-NIGHTHAWK, ext. 701 dsaathoff@nighthawksystems.com
Copyright Business Wire 2006

Comments in the BLOG

Commerce Planet (OTC BB: CPNE) swooned today for now apparent reason and traded to a low of $1.33. The stock bounced off a perfect 61.8% retracement of the big September move, and is gaining ground again. For those who are looking to add to positions or establish new ones, my last BLOG suggesting caution on an extended stock was right on the money. Now is the time to pounce if you were looking for a good entry point.

Read today's BLOG for more information.

The BLOG is your opportunity to ask questions and offer comments. I will make an effort to answer every legitimate question. If I don't know the answer, I will contact the management and get the answer. Alternatively, if you have questions you don't want publicly displayed, you can always email me directly at editor@otcjournal.com.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.

Titanium Group (OTC BB: TTNUF) Making Our Schools Safer For Kids

Titanium Group, my most current idea, was out with news pre open today. The company announced it has received a purchase order from Barr Security in the US.

Barr Security is one of the US leaders in school security systems. Barr will be incorporating the TTNUF facial recognition software as a component in its product offerings. Barr's security systems are specifically designed to prevent pedophiles from accessing school grounds.

Unfortunately, pedophilia is running rampant in our society today. Just turn on Dateline once a week and watch their sting operations unfold on camera. It appears to be a negative consequence of internet communication- pedophiles can reach out to a wider net than in the past.

This news is extremely important and bodes well for the future of TTNUF. As I stated in my original presentation, I expected them to start logging some important sales in North America- today was the first of what I believe will be many.

This news really deserves an entire focused edition, but I need to do a little research first. Look for an update in the next day or two. I believe this stock is headed into the $1 range this year.

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