NIHK Video River Networks Inc (PK)

Nighthawk Systems, Inc. (OTCBB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that revenues for 2006 were $899,175 as compared to $589,689 in 2005, a 70% increase between years. Gross profit more than doubled between years and gross margins increased from 30% to 40% between years as the increase in products sold between years led to better production efficiencies. The net loss between years increased from ($2.7) million in 2005 to ($3.7) million in 2006 due to increased expenses for consulting and public relations activities, as well as interest expense associated with the Company�s debt. The net loss per share improved from ($0.07) per share in 2005 to ($0.05) per share in 2006. The increase in revenues between years was attributed to a sustained sales and marketing effort that began in 2005 and was enhanced in 2006 with the addition of new sales and marketing staff. Sales to both new and existing customers contributed significantly to revenues during fiscal 2006, with sales to new customers accounting for approximately 60% of total revenues for 2006. H. Douglas Saathoff, Nighthawk�s CEO, commented, �I�m extremely pleased with the steady growth and progress made throughout 2006. Sustained sales and marketing efforts decreased our historical dependence on a few customers as we added many new electrical utilities to our customer base and began to uncover new, industrial applications for our products. This incremental growth and the resultant exposure of the Company and its products has led to a handful of larger opportunities that we hope to capitalize on in 2007. We made important additions to our team in the latter stages of 2006 to help with these opportunities, and have recently announced the development of new Web-enabled services that should assist us with those opportunities this year.� Mr. Saathoff also added, �I�m also pleased that the growth in revenues is starting to filter down to better operating results as well. By selling more products into more industrial applications, we were able to increase our gross margins significantly. I think it is important to note that payroll and payroll-related expenses actually decreased from 2005 to 2006, yet I feel we�re a more capable team today than ever before. We�re off to a good start so far in 2007, and I look forward to continuing the trends that we started in 2006.� 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.