Looks like Commerce Planet's (CPNE) pullback may be done. The stock price openned just above its accending trendline and proceeded to trade upward yesterday. The stock hit its highest level in the previous five traded days before closing at $1.29.

With the uptrend convincingly still intact and the Stochastic indicator's downward momentum at a stand still, there is a very good chance CPNE is positioned for the next POP. Our next target of $1.45 was missed by just one penny last week. This run should easily take out that target on its way to our year end target of $2.00

Today, the Dow Jones industrial average traded, albeit temporarily, above its RECORD HIGH CLOSE of 11,722.98, set back on Jan. 14, 2000. Rising to 11,724.86 in morning trading, the Dow then fell back softly to 11,707.49.

Up 1.12, at 1,337.71, the S&P also reached a 5 ½ year high. It is still 189.75 points off its closing high of 1,527.46.

The Nasdaq, up 4.23 at 2,267.62, is not expected to approach its high close of 5,048.62 any time soon.

The Dow was the first big index to recover because it did not rise as sharply in 2000 as the S&P 500 and the Nasdaq.

The last time the Dow stood at these levels, we were in the dot-com and housing boom frenzy. Ambitious investors sent the seemingly fail-safe Nasdaq stocks soaring, while the steady 30 stock index showed high but somewhat neglected value.

However, after early 2000, doubts about the high-tech boom set in. Signs of recession infiltrated the media, and when the 9/11 attack occurred (which not only affected investor confidence but also the bottom line in many industries), stocks descended drastically. Then the onslaught of corporate scandals (Enron Corp, WorldCom Inc, etc) shook Wall Street. The culmination of all these factors decimated stocks, sending the Dow down near 38% from its record high to a five-year closing low of 7,286.27 on Oct. 9, 2002.

Slowly, Wall Street regained value, as cautious investors began dappling in the industry. And now, with over 4 years of solid corporate profit growth, despite looming energy prices and interest rates, investors are once again moving Wall Street.

With the Federal Reserve's announcement to halt a 2 year run of rate hikes, and evidence the economy is not heading for a hard landing, investors have faith in stocks once again.

While jobless claims fell, dropping close to economists' expectations, the Commerce Department revised its gross domestic product number for spring to 2.6 percent from 2.9 percent. Unemployment benefit sign-ups dipped last week and the Labor Department reported Thursday that new applications filed for unemployment insurance declined by a seasonally adjusted 6,000 to 316,000 for the work week ending Sept. 23. The latest showing on claims was close to economists' expectations for claims to total around 315,000 last week.

Yesterday, DNAPrint Genomics (DNAG) announced in a Press Release, its launching of clinical studies for Post Operative Nausea and Vomiting (PONV). Studies show that the potential side affects of anesthesia, is one of the major concerns of patients going into surgery and DNAG can now screen patients to calculate their probability of having negative side affects and with new PONV testing, help doctors administer alternative methods. DNAG’s cutting edge technology is finding a wide array of channels where its research comes in very handy. Many Biotech companies are releasing new medications; DNAG is improving the effectiveness of drugs currently in research and on the market.

In an ever-evolving industry, biotech companies can be pigeon-holed by their research into a particular drug. We like DNAG because they have their fingers into so may different industries with a very versatile product. From crime labs to medical testing to the everyday consumer, DNAG can apply their research to essentially any forum. If DNAG’s valuable, avant-garde technology catches the attention of one of the industry giants, we are in for a great ride! And at a price where a meager $2500 investment buys you over 200,000 shares, it is definitely worth taking a chance. Think “risk-reward ratio”! You maximum loss is a penny, you maximum gain is…

Commerce Planet (CPNE) announced yesterday (Press Release) that it will add yet another product to its gamut of business solutions. The product, MyLiveChat.com, was programmed internally to increase conversion of website visitors. After its successful use within the CPNE family, it will now be sold as yet another feature CPNE can offer clients to maximize their website traffic.

MyOnlineChat.com is a simulated live chat that replies to customer questions with most closely matched pre-set responses. It takes minimal effort on the business’s part but offers a higher level of customer support. Simply marketing to CPNE already flourishing clientele will make this reasonably priced product a huge revenue generator.

This is what we love about CPNE! It is constantly building upon itself; constantly accumulating companies, making alliances, improving current products and launching new ones. This type of fluid progress has made it a favorite with small cap investors and definitely our teacher’s pet. As we have been saying for months, this company is going somewhere fast and we are just glad to be along for the ride!

This morning, Walker Financial (WLKF) announced in a Press Release that revenues this quarter are expected to be up 70% over last quarter. Also announced was the addition of two licensed sales agents to the WLKF network and the intention to rapidly grow the WLKF sales force, with projections of increasing to over 200 licensed agents in the next two years. WLKF has the product and is building the recognition to become one of the leading insurance providers in the marketplace.

With employer subsidized health insurance decreasing every year, Americans are either paying more for private plans or simply not maintaining health insurance at all. And the Government Census Report shows an alarmingly high rate of uninsured minorities. This rising and currently underserved statistic presents an industry niche that WLKF is positioned to tap.

With this kind of company growth and revenue gains, at this price, it is no wonder we think WLKF is worth a serious look.

Mark your calendars!

When: Thursday, September 28th at 1:30 PST. The teleconference call is scheduled for one hour.
Where: Dial toll-free: 1-800-819-9193. International number: 1-913-981-4911.

Execute Sports (EXCS) announced last week in a press release that it will conduct a “Mid-quarter Conference Call Update” for shareholders and investors. This forum of conversation with “The Todds” (President, Todd Pitcher and CEO, Todd Hahn), will be a good opportunity to ask questions about EXCS in a candid and public channel.

In laymen’s terms, a “mid-quarter conference call update” is just as the name implies. But….from a person who has been following this company for awhile, I believe the reason for the call/Q&A session is to help shareholders put all of the pieces together. With press release after press release of Academy Snowboards inking monster deals and blowing doors on previous numbers. From Executes Wetsuits, Vests and Rash Guards being a smash hit, to the founding and launching of The Council, (let alone Kampus, Collective Development and EagleRider), there are a lot of pieces to put into place.

So, for those of you not already invested in EXCS, this will be your chance to do your homework on a company poised for serious growth. We will post commentary after the conference call for those of you not able to join in.

About Execute Sports (EXCS)

Commerce Planet has been a textbook trading stock for us (see chart). On the heels of a recent announcement that "PAID MEMBERS" continue to grow at a rapid pace, Commerce Planet's stock price rise is gaining momentum.

CPNE appears ready to Break Out again. At the risk of sounding like a broken record, we feel this is just the beginning for CPNE. Our next targets for the stock are $1.25 and then $1.45 Longer term (4 -6 months), we believe $2 is not out of the question.

CPNE is drawing more and more positive attention in the small cap community. But with revenues growing the way they are, consistently increasing earnings and zero debt, what more would you expect? Small Cap Nasdaq? Inclusion in small cap mutual funds? Being bought out? The sky could be the limit for this one.

What are your ideas for the future of CPNE? Got any? With a situation this explosive, I bet you do. $2 Bucks? We would love to hear your thoughts

While many in the IPTV space have grand visions for the future, Eagle Broadband, Inc. (AMEX: EAG) is busy executing now. One thing that separates EAG from the competition, besides being one of very few quick enough to secure Hollywood entertainment rights and its position as a leading provider of IPTV set top boxes, is the company's ability to provide IT and integration services.

The hospitality industry loves the “one-throat-to-choke” idea when it comes to technology and by acting as a one-stop shop; EAG is attracting a great deal of attention and is exhibiting its tremendous potential as the IPTV market begins to bloom. EAG offers the only widely deployed IP high definition set-top box in the hospitality industry, a key strength as the industry experiences a shift from analog to digital communications and entertainment technologies.

As the United States transitions toward more centralized living and Multiple Dwelling Units (MDUs) and as construction surges in major cities such as Las Vegas, New York and Miami, EAG will be a top - and at times only - choice for IPTV solutions. This is extremely positive news since the IPTV market is expected to grow to $40 billion by 2010. Stay tuned for profile coverage in the very near future.

Until profile coverage is available to you, are there any questions on EAG's business model? We are here to help.

For the diligent investor left scratching his/her head back in June on news that Verizon Wireless had sold off its paging network – outlined by NIHK as its springboard for future growth – have no fear, the ball is back in Nighthawk’s court. Unbeknownst to NIHK, Verizon wireless had been shopping its elite paging network which ended up being acquired by American Messaging. In addition to the Verizon deal, American Messaging has also acquired AT&T’s paging network (formerly SBC Communications), making it the second largest paging company in the U.S. with more than 1.5 million corporate subscribers.

NIHK has recently announced a strategic alliance with American Messaging and as it turns out Verizon’s decision to sell its highly regarded paging network was a blessing in disguise for a number of reasons.

1. The new agreement with American Messaging will provide NIHK access to more than 1.5 million corporate subscribers, far more than the previous agreement with Verizon wireless. Corporate customers better fit NIHK’s needs as they are much more likely to purchase the company’s products than the individual consumer. In addition, with customers in every state and a network that covers nearly 100% of the nation’s leading markets NIHK has opened the door to a vastly wider target market.

2. The new strategic alliance is a joint venture and two-way sharing opportunity that will bundle NIHK’s best of breed telemetry products with one of the country’s best networks. Both sides agree that a revenue generating model has been put in place and that a mutually beneficial agreement has been constructed here.

3. Nighthawk’s new partner is easier to deal with than the big wigs at Verizon and is dedicated to making its telemetry business work. According to today’s release “They have formed a company with a sole and absolute focus on paging, allowing our respective customers to benefit from utilizing their extensive network. Nighthawk has gained access to a larger, more focused network of sales and marketing personnel that is committed to providing time and money-saving solutions to both new and existing customers."

4. Since the recent partnership with Verizon wireless ended amicably, the door is open for future contracts. As NIHK moves forward with new products in years to come, having an established relationship with one of America’s largest cellular providers is a huge plus.

After a somewhat quiet summer, NIHK is ramping up for a big end of year and a potential record 2007. Sometimes things just end up working themselves out and we think that is just the case here. In our profile coverage later this month we will outline in more detail that potential gains to be made with NIHK.

It would be great to get some feedback here folks. For all of you current shareholders, and those just watching from the sidelines, What are your thoughts on the future of NIHK?

Monday September  18th 2006 - Friday September 22nd 2006
Date	ET	Release	Consensus	Prior
Sep 18	08:30	Current Account	-$213.5B	-$208.7B
Sep 18	09:00	Net Foreign Purchases	NA	$75.1
Sep 19	08:30	Building Permits	1750K	1763K
Sep 19	08:30	Core PPI	0.2%	-0.3%
Sep 19	08:30	Housing Starts	1770K	1795K
Sep 19	08:30	PPI	0.3%	0.1%
Sep 20	10:30	Crude Inventories	NA	-2904K
Sep 20	14:15	FOMC policy statement	-	-
Sep 21	08:30	Initial Claims	NA	308K
Sep 21	10:00	Leading Indicators	-0.2%	-0.1%
Sep 21	12:00	Philadelphia Fed	14.0	18.5

Eagle Broadband is pushing hard to succeed in the surging IPTV market. EAG's IPTV solutions enable broadband cable providers and hospitality organizations to provide more than 200 channels of premium viewing and also reap the benefits of sales associated with Pay-TV, high-definition (HD), personal-video- recording (PVR), video-on-demand (VOD) and subscription video-on-demand (SVOD) related purchases.

As can be seen in the chart to the left, the investment community seems to be taking notice of just that. Popping nearly 100% toward the end of last month, this Eagle is looking to soar.

EAG offers the ONLY widely deployed IP high definition set top box in the hospitality industry and is paving the way for future growth. As demand for IPTV solutions grows, we believe EAG will too!

On the heels of a recent announcement that "PAID MEMBERS" continue to grow, Commerce Planet's stock price rise is gaining momentum.

By no stretch of the imagination is CPNE standing idle and hoping that past successes will replicate themselves. Facilitating its transition from a dominant online reseller to an emerging one-stop shop, e-commerce powerhouse, CPNE is building a team of industry pioneers to guide the company on its way.

CPNE continues to make all of the right moves and you should too. We recommend that both existing and potential shareholders follow this deal ever so closely as it has potential to generate some Big Gains sooner rather than later. Look our for updated profile coverage in the weeks to come.

Nighthawk Joins Forces with American Messaging

Today Nighthawk announced a strategic alliance with American Messaging, the second largest paging company in the United States. In the press release, American Messaging said "We believe this agreement is a perfect fit, as we provide a dependable wireless network for Nighthawk devices that enables customers to control equipment in remote locations."

Nighthawk is a leading provider of intelligent wireless power control and emergency notification products. By allying American Messaging, who serves approximately 1.5 million customers in all 50 states and provides network coverage in 98% of the top markets, Nighthawk stands to reach a much larger market and offer existing clients a larger gamut of product capabilities.

In June of this year, American Messaging completed its acquisition of Verizon Wireless’ paging network. That, coupled with its previous acquisition of AT&T’s (formerly SBC) paging network, makes it a leader in the industry and a perfect forum for Nighthawk’s niche products. We should see good things come from a distinct synergy like this!

But we aren’t surprised, are we? This year has proved to be a collaborative year for Nighthawk. After an impressive alignment with Verizon Wireless in January, it was obvious Nighthawk had set their sights on the major leagues, but that was just a single compared to this hit!

In a press release this morning, Execute Sports announced that its subsidiary Academy Snowboards has signed an exciting partnership with sales and marketing distributor, UDT Distribution. UDT will retain distribution exclusivity in Europe, where annual snowboard sales are estimated as over 80 million (or 450,000 units), as long as sales targets are met annually from 2007 to 2011. This means a minimum of 80,000 units sold by 2011, not to mention being picked up by over 20 distributors throughout the continent.

According to the National Sporting Goods Association (NSGA), snowboarding is one of the fastest growing sports worldwide and Academy is now poised to meet a rising demand for snow sport products. Pretty exciting stuff for a company with such a global presence and a devout following!

Monday September  11th 2006 - Friday September 15th 2006
Date	ET	Release	Consensus	Prior
Sep 12	08:30	Trade Balance	-$65.5B	-$64.8B
Sep 13	10:30	Crude Inventories	NA	NA
Sep 13	14:00	Treasury Budget	-$60.0B	-$51.3B
Sep 14	08:30	Business Inventories	0.6%	0.8%
Sep 14	08:30	Export Prices ex-ag.	NA	0.2%
Sep 14	08:30	Import Prices ex-oil	NA	-0.1%
Sep 14	08:30	Initial Claims	NA	NA
Sep 14	08:30	Retail Sales	0.3%	1.4%
Sep 14	08:30	Retail Sales ex-auto	0.5%	1.0%
Sep 15	08:30	Core CPI	0.2%	0.2%
Sep 15	08:30	CPI	0.3%	0.4%
Sep 15	08:30	NY Empire State Index	14.0	10.3
Sep 15	09:15	Capacity Utilization	82.5%	82.4%
Sep 15	09:15	Industrial Production	0.3%	0.4%
Sep 15	09:50	Mich Sentiment-Prel.	83.1	NA

EAG announced today that it plans to display its IPTV solution at the Broadband Properties Summit 2006, September 11-13, at the Dallas Marriott Las Colinas, in Irving, Texas.This convention will be attended by a number of key customer groups for EAG including, Real Estate Developers, Property Owners and Managers, Independent Telephone Companies, Municipal Officials, Private Cable Operators, Town Planners, Economic Development Professionals, Architects and Builders, Systems Operators, and Investors.

EAG is eager to show off its new IP3000HD MPEG-2/MPEG-4/H.264 set-top box which is likely to generate some solid fan fare due to its innovative design and ability to provide users access to Eagle's more than 200 channels of licensed, multicast studio content in either standard or high definition over a closed IP broadband network.

Conventions such as the upcoming Summit this week in Texas are the ideal breeding grounds for future contracts and partnerships. With Hollywood rights and a best of class IPTV solution, EAG is ready to grow in the emerging IPTV market.

Lots of news today. Walker Financial produces record revenues, Xtreme Companies restructing is in full swing and Nighthawk Systems looks like a bottom buying opportunity...

Bottom Buying Opportunity:
Nighthawk Systems, Inc. (OTCBB: NIHK) appears to have found a bottom here. The stock has support at the 3 cent level and the stochastic indicator is indicating a buying opportunity. Good support along with a stochastic divergence and cross upward off the oversold level might be all that is needed to propel Nighthawk back up. Couple these technical reasons with today's news and we have a potential winner on our hands.
Restructuring Going Like Clockwork
In recent editions we have stressed to you the turn around story that lies in Xtreme Companies Inc. and this edition is no different. To ensure that the new and improved 2007 Challenger line achieves its full sales potential, XTME has brought another industry veteran on board in ex- Brunswick Boat Group sales executive Jeff Gayer. Brunswick did $2.8 billion in 2005 net sales!! Think Mr. Gayer is qualified? Here is an excerpt from today’s press release: “Prior to joining Xtreme, Mr. Gayer was Brunswick's Commercial and Government Division Sales Manager reporting directly to the President, responsible for both domestic and international sales within the division. Prior to his tenure with Brunswick, he was Regional Sales Manager for Boston Whaler where he was responsible for developing and maintaining their U.S. dealer network. His marine experience also includes tenure with the State of Kansas Department of Wildlife where he headed the state boating organization and was commissioned on legislative committees which established state boating laws and regulations”

XTME is building a team of well respected industry veterans that possess invaluable contacts within the global dealer/distributor community. These relationships should provide a nice jumpstart to business as the Challenger line launches. What you are seeing here is a transformed company ready for near-term growth. Don's let the performance of old management blur your vision of the real story here.

Record Revenues!
Walker Financial Corporation (OTCBB: WLKF) today announced record August 2006 revenues that mark a 144% increase over 8/05. August 06 revenues also represent increase of more than 100% over July 2006 exhibiting WLKF's high growth potential and success thus far in expanding its health insurance sales capabilities. Commenting on today's news, Mitchell Segal, President of Walker, stated that “this is only the beginning of our performance from the sale of health insurance over the telephone and internet. We expect our sales to grow at a significant rate in the coming months as we continue to hire additional licensed sales representatives.”
As stated previously. We feel that WLKF's unique position as a provider of healthcare related products to a number of greatly underserved high- growth demographics will drive growth in upcoming months. Today’s news is just a taste of what's to come over the next 12 months. We will keep you posted as things develop.

Nighthawk Protects Michigan Drivers
Although grossly overlooked by many small cap investors in recent months, Nighthawk Systems Inc. (OTCBB: NIHK) has posted 4 consecutive quarters of revenue growth and now boasts a highly diversified client base which includes a dozen new electric utility customers and more than two dozen wireless companies. NIHK announced today that it has shipped its PT1000 logic boards to Information Stations Specialists (“ISS”) of Zeeland, Michigan for use as a flashing beacon sign controller. ISS sells the flashing beacons to Departments of Transportation for use with Highway Advisory Radio systems.

NIHK's pipeline of opportunities is larger than ever and management is sticking to its previously stated mission of diversifying its customer base and pursuing beneficial strategic partnerships. In our opinion, NIHK has great potential to make some waves in the near term. Stay tuned for upcoming updates and profile coverage.

Three great turn around stories here. Record revenues, massive corporate restructuring and a bottom buying opportunity.

US Energy Initiative Corporation (OTCBB: USEI) has just annouced a contract with PS Natural Gas Co. Ltd for a total value of $54 MILLION DOLLARS.!! For months we have been altering subscribers of USEI's potential to sign a bank breaking agreement and today was a big day for USEI.

Today's annoucement is no surprise to those following our continuous updates and profile coverage of USEI. Revenues for the the first half of 2006 are up nearly 700% over lst half 05 and recently established contracts with GreenGas in Thailand and Truck Gas Europe for the sale of 1,500 and 2,000 systems respectively alone would result in massive revenue growth for USEI. Even without today's huge payday. Through agreements with General Motors Thailand and GreenGas NGV (Asia) Co., Ltd and its ability to provide Thai consumers with a 44% fuel savings USEI has this high growth market on lockdown and more lucrative contracts are likely to follow.

Xtreme Companies, Inc. (OTCBB: XTME) stock has been performing wonderfully for investors. Up 55% from our original trade alert at $0.029, XTME hit a high of $0.05 on both Wednesday and Thursday, up over 70%. With corporate restructuring came many new interested investors. Volume swelled Wednesday to nearly 2 million shares, well above the 30 day average of approx. 50k shares. If XTME is able to maintain the successful execution of its restructuring strategy, and the investment community continues to embrace the results, we believe this stock will have no trouble reaching the 10 - 15 cent range in the very near future.

Nothing but the Best for XTME

Pushing forward upon its mission to optimize operational efficiencies and build an elite national brand, XTME announced today that it plans to unveil the redesigned 2007Challenger sport cruisers and high performance boats at the world’s largest boat show. XTME will be presenting in late October at the 47th Annual Fort Lauderdale International Boat Show, which features more than $1.6 billion in watercraft from every noteworthy player in the industry. This show is a perfect opportunity for XTME to show off its superior product offering and comes at an ideal time as the company commences its full- scale national marketing campaign.


Still An Xtremely Good Time To Buy!

Currently the product speaks for itself as Team Gallagher, running the Challenger DDC- 28 continues to impress the racing community, setting speed records and taking home trophies at some of the country's biggest events. As the racing teams build awareness, this boat show is also viewed as a great chance to build recognition and turn some heads amongst the national boat dealer and distributor community, a key component of XTME’s near term growth. Xtreme Companies Inc. (OTCBB: XTME) has briefed the public on its plans for near-term growth and continues to follow through at a rapid pace. This is what we look for in a small cap gem. State your mission and deliver. XTME has attracted a boatload of investor attention as of late. For those of you thinking that this is the same Xtreme of last year, or even a few months ago, you couldn’t be further from the true story. Look out for our upcoming profile designed specifically to detail the unique, low-risk opportunity that lies in XTME.


Just the Beginning of a Big Run!

Since we last brought you profile coverage of Network Installation Corp. (OTCBB: NWKI) back in February, the company has made some monumental advancements, both in regards to improving its financial position and winning contracts for its patented sports book technology that is currently taking the gaming industry by storm.Our last update on August 26 gave you a heads up on NWKI's recent progress and highlighted recent developments such as the company cutting out $1.5 mil worth of debt and logging 1st half revenues nearing $12 million. In the days following our update, NWKI rose to a high of $.46 on 8/30/06 for a gain of more than 50%.

For months upon months we have briefed you on the potential of NWKI's patented sports book technology, “NWKI has a patent pending on a revolutionary electronic sports book system that provides the operator with enhanced functionality never offered before. The new sports book solution is more visually appealing to the customer and presents information in an innovative, multi-screen format, previously unutilized in the gaming industry. Initially the unit will be beta-tested at the Stations Casino in Las Vegas but company officials expect the system to become adopted in more than 75 hospitality/gaming organizations within Las Vegas within a relatively short period of time” and that potential is resulting in solid revenues!

Here Comes the Revenues

NWKI was up nearly 18% in today’s trading on the heels of a major announcement highlighting the exact core capabilities outlined for readers time and time again. In addition to the $9.5 million in revenues announced earlier this year for the company's electronic sportsbook technology, NWKI today wowed the investment community with another $6 million in contracts expected to hit the books in 2006. 2006 is shaping up to be a huge winner for NWKI. At this time we would like to reiterate our stance on the company, originally stated back in February “Taking into consideration Network Installation Corp.'s aggressive, near-term growth strategy, highly successful corporate acquisitions, solid technological capabilities, and a time tested and proven industry-leading executive team we have little doubt of NIC's stock price easily outperforming the market over the next 12 to 36 month period”We are firmly behind this one and it appears that the market is too. NWKI has placed strict focus on markets and technologies capable of proving rapid returns and is reaping the rewards. You should be too. Take a look at our most recent profile and NWKI’s financials for additional info. Maybe you will be the next big winner.
Two great turn around stories here. Watching might be losing, looks like something is beginning to stir on both charts... As always, do your due diligence and happy trading!

It appears as though the investment community likes what they are hearing from Xtreme Companies, Inc. (OTCBB: XTME).

Yesterday announcing another major step towards turning things around. Staying on track with recently stated plans to recruit the crème de la crème of the performance boating industry, XTME announced today that it has appointed ex-Fountain (AMEX: FPB) executive and current advisory board member Jack Clark to COO.

As XTME builds a team of well respected industry veterans with decades of experience and invaluable business contacts, improvements are sure to come. In today's press release, you'll see that these guys mean business.

Eagle Broadband (AMEX: EAG) appears to have found a new level of support in the $0.60-0.65 range, bouncing nicely off of it.

For those of you who are not subscribed to our MicroStockNews, here is last night piece on EAG

Eagle Broadband Inc. (AMEX: EAG) is laying the groundwork for success in the surging IPTV market. One of few companies with Hollywood studio and major entertainment channel content distribution rights, EAG has established itself as a rapidly emerging player in the markets for broadband, Internet Protocol (IP), and communications technology and services. EAG's IPTV solutions enable broadband cable providers and hospitality organizations to provide more than 200 channels of premium viewing and also reap the benefits of sales associated with Pay-TV, high-definition (HD), personal-video- recording (PVR), video-on-demand (VOD) and subscription video-on-demand (SVOD) related purchases.

EAG has recently announced the successful closure of a multi-year, $5.5 million non-equity promissory note transaction with an institutional financer for a purchase price of $4.4 million. The majority of funding will be used to construct the company's Super Head-End in Miami (which will be the main control for its IPTV services) and also to facilitate the growth of the IPTV set-top box business. In a market expected to have more than 50 million subscribers by 2009, EAG is ramping up for near-term growth.

To further prepare for the oncoming IPTV subscriber explosion, EAG continues to perfect its offering. EAG has recently signed an agreement to deliver IPTV content around the U.S. via Terramark's NAP of the Americas facility. The facility is fully capable of delivering any service offered by any network services provider in the world to consumers in all corners of the globe with pinpoint accuracy.


Between capabilities gained through this agreement and those of the company's soon to be developed Super Head-End, EAG will be well-positioned to take over significant market share in a number of target markets. Further solidifying its IPTV offering, EAG has selected the Latens IP CAS Conditional Access solution to secure its advanced IPTV services. Commenting on the agreement, COO Brian Morrow stated "Our customers demand the best and latest video content available in the market today, and our content providers demand a robust CAS solution. We found that Latens' solution offered the best option in the IPTV CAS market today, and that its encryption architecture could adapt easily to our Eagle engineered STBs."

EAG offers the ONLY widely deployed IP high definition set top box in the hospitality industry and is paving the way for future growth. As demand for IPTV solutions grows, we believe this one has the potential to be another big winner.