With summer rapidly approaching, many of you, like myself are scrambling to both squirrel away extra gains to hedge against the sometimes slower June-August season and also shed the beer belly, obviously with minimal effort.

I am a firm believer that DineWise Inc. (OTCBB: DWIS) can help us meet our goals in both departments. Below I will provide the quick & dirty version on why I feel this is so, both from a market/financial standpoint and from a health conscious point of view.

In addition to serving more than 1 million households and generating $2 billion over its 50 year operating history, the company’s newly established DineWise brand grew by 344% in 2006 ($81K in Q1 to $541,00 by Q4). Overall, DWIS notched '06 revenues of about $11 million with gross profit of nearly $5.3 mil. This is just the tip of the iceberg as the company has much room to grow.

Talk about room, with about 92% or approximately 270 million Americans consuming some type of ready to eat meal on a daily basis, DWIS has developed the core capabilities necessary to become the personal chef to the lower 48 states.

Boding extremely well for future sales, DineWise ® branded products recently received stellar commendations by Newsweek Magazine. In article entitled "Good Food, Delivered" (http://www.parsintl.com/pdf/13785-N-Dinewise.com.pdf), DineWise ® meals were found to be the only ones that tasted fresh, not frozen. In addition, DineWise meals were deemed delicious, available in an "enormous variety of meal plans" and, overall, a good value. Good enough for Newsweek, good enough for us.

With a virtually endless offering of 5,000 chef-prepared, self customized, dining solutions DineWise has something to please every palette and fit just about every diet/health need out there. By positioning itself as a “lifestyle choice" company, DWIS can actively pursue burgeoning opportunities in a variety of currently under served markets including, overweight/obese, diabetic, senior/caregiver, and the on-the-go, health conscious consumer.

There is just a taste of why we think DWIS is well-poised to make our Summer months even brighter. Check back soon for updated coverage.

DWIS: Additional 2006 Highlights

- Newly acquired customer accounts increased 33% in Q4
- Newly acquired customer accounts increased 10% in 2006
- Net losses available to common stock holders dropped 4% in 2006
- Net loss per share in Q4, '06 was down 38% in comparison to the same reporting period in 2005
- Generated annualized cost savings of approximately $1,000,000 through new fulfillment outsourcing and other cost cutting programs

Labels: DineWise Inc., DWIS

Up nearly 22% around 12:00 est today, Nighthawk Systems Inc.(OTCBB: NIHK) announced this morning that booked sales for the 1st quarter are in excess of $300,000 versus about $140,000 in audited revenues for Q1 '06.

Labels: Nighthawk, Nighthawk Systems, NIHK

We all know how busy life can be at times. I, for one, can attest to it. If I am not running late, I am sleeping, if I am not sleeping, I am stuck in traffic or driving the kids to soccer practice. The temptation of grabbing a fast food dinner on the way home can be overwhelming. I am so tired and the drive through makes it is so easy. So as I am cruising past fast food restaurant after fast food restaurant, taunting me from every corner, the only thing to stop me from pulling into an easy drive through is my widening waistline. I know how bad this food is. We’ve all seen or heard of ‘Supersize Me’.

So obviously, when I was introduced to DineWise, I was not only intrigued by the company idea but also by the idea of having a nutritious, delicious meal at home waiting and ready in seconds. As many of you know, I always love a good idea that I feel is ready to capitalize on a demand. Knowing firsthand the time versus quality dilemma, I thought this would be a great company to not only fund with my patronage but also invest in.

So, like any good guinea pig, I ordered their product. Now, I am not new to frozen dinners. I, like most college students, definitely had my fair share of Hungry Man’s which were not the most delicious, but cheap, fast and easy. So needless to say, when DineWise claimed to offer not only nutritious food but also food that can be prepared in seconds, my expectations were not very high. I made the decision to be open-minded (okay, so maybe I closed my eyes and plugged my nose), after all, a better diet is worth a little taste sacrificing.

But, alas, I was pleasantly surprised, the food was great! It did not taste like it had ever been frozen. I was sold, so I did what I do when I like a company, I called my stock broker. I like the idea of not counting calories, with DWIS it is done for me! I like the idea of eating quality food in my own house – skip the dirty pots and pans! Another big score for the busy/lazy guy!

I figure it worked for Janet Jackson and a slew of other celebrities who I can only imagine are twice as busy as I am. There is hope for this waistline after all.

WHAT?
Eagle Broadband Inc. (OTCPK: EAGB) Second Quarter Fiscal 2007 Result Conference Call.

WHEN?
Monday, April 23 at 5:30 p.m. EST (Call will also be recorded and achieved for future listening)

WHY?
EAG will discus results of Q2 '07 and update listeners on recent corporate developments and progress with customers. Some of what transpires at this colloquium could play an enormous role in the company's market performance going forward.

HOW?
Log into www.eaglebroadband.com using Microsoft Windows Media Player or Real Networks RealPlayer.

WHAT ELSE? GET INVOLVED!

Questions may be submitted prior to the call via e-mail at questions@eaglebroadband.com or via fax to (281) 538-4730, attention: Pat Kennedy. Both faxes and e-mails should be marked with the following subject header: Eagle Broadband conference call. Participants will also be able to submit questions online during the call via the Web cast interface.

Labels: EAG, Eagle Broadband, Eagle Broadband Inc., IPTV

Good morning!

We filed our 10-KSB yesterday afternoon with SEC, and this morning the following release went out announcing the results included in the filing. As I had previously announced, revenues of approximately $900,000 2006 were 70% higher than for 2005. I’m even more pleased that the growth enabled gross profits to more than double from 2005 to 2006! Margins were not sacrificed in order to grow; in fact, increased sales activity and promotional efforts by the Company led to some higher margin industrial applications later in the year with companies like Verizon Wireless, and already in 2007 with DaimlerChrysler.

While it’s great that we grew throughout the year and that has continued so far in 2007, we’re definitely trying to take it to another level in 2007. While I cannot go into specifics, I mention in the release that we have a handful of larger opportunities out there. These opportunities have been generated by our own people in some cases with existing customers, and in some cases, it’s been the overall increased exposure of our Company through public relations and marketing efforts that have created opportunities with potentially new customers.

I think you will continue to see us align with strategic partners during the remainder of 2007, and we’ve already announced that we’re taking steps to add services, like our Web-enabled interface, that will make it easier for our customers to use more of our products. We’re definitely being proactive in trying to land some larger deals. I would definitely like to add some services to our current product offering in an effort to generate additional, recurring revenue for the Company. I certainly like the trends that I’m seeing in our targeted markets, and think the needs for our products and solutions will only continue to grow.

All of the above is being done with the obvious idea of making more money, and lessening our dependence on outside funding sources. We did incur a lot of expense this past year on promoting and funding the Company, while actually spending less on salaries and other headcount-related expenses from 2005 to 2006. I do hope that our shareholders recognize that the money has been spent on generating additional exposure of the Company and its products, and that this has in turn led to additional sales opportunities and revenues. I think that over the past year, there has definitely been a better correlation between the news put out by the Company, and the associated increases in revenues and gross margins produced by the Company.

Lastly, I want to comment very briefly on the time it took to file our 10-KSB this year. We had filed our last several quarterly reports on time with the SEC without any extensions, and we certainly aimed to so with the 10-K by filing it by the end of March. However, we had new audit personnel on our engagement this year, including two brand new audit partners that worked very hard in getting the job done right. Some complicated accounting rules didn’t help either. So I fielded a ton of questions from shareholders over the past couple of weeks and we ended up going right to the deadline with our extension and filing yesterday. I want each of you to know that it is always our goal to file our reports on time, and I apologize for any confusion caused over the last two weeks.
Have a great day!

Doug
H. Douglas SaathoffChief Executive Officer Nighthawk Systems, Inc.

Nighthawk Systems Releases Fiscal 2006 Results--Revenues Increase 70%----Gross Profit Increases 126%--
SAN ANTONIO, TX – 4/18/06- Nighthawk Systems, Inc. (OTC BB: 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 http://www.nighthawksystems.com/" href="http://www.nighthawksystems.com/" target="_blank">http://www.nighthawksystems.com/.Forward-looking statementsStatements 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:
Doug Saathoffdsaathoff@nighthawksystems.com(877) 7-NIGHTHAWK, Ext 701

Labels: M2M, Micro-Cap, Micro-Stock, Nighthawk, Nighthawk Systems, NIHK

DineWise, Inc. (OTCBB: DWIS) has caught our attention lately; partially due the company's promising 2006 performance, both operational and financial; and partially due to the sheer attractiveness of its business plan. DWIS experienced transformational growth in '06 and is setting the table for an exponentially better 2007.

Moreover, Dinewise was recently profiled in NEWSWEEK Magazine (http://www.parsintl.com/pdf/13785-N-Dinewise.com.pdf) and deemed a "good value" in comparison to industry competitors. The profile also stated that DWIS products were the only that didn't taste frozen. With a weekly circulation of 3,160,000; a testimonial in Newsweek could result in more than a few new customers.

With Americans as crunched for time and out of shape as ever, DineWise has positioned itself to put food on the table for individuals and families across the contiguous United States. With celebrities at the forefront of the prepared meal movement, the general public is quickly warming up to the idea of bringing the family dinner back and improving their families health at the same time. All this for a portion of what it costs to eat out these days and the convenience of eating at your own kitchen table. Dinewise is positioned to take advantage of Americans' chaotic lives and help deliver a healthful, helpful product. Needless to say, we like the idea almost as much as we like the significant demand that Dinewise stands to fill.

DWIS is a leading direct marketer of chef- prepared meats and quality foods that is aggressively targeting the thriving in-home dining solutions market. From fine dining to health conscious meals, these guys have expanded their catalog (circulated to 184K in the U.S.) to offer just about anything anybody could want to eat (5,000 customized choices).

In its 50-year operating history, the company has served more than 1 million households and generated $2 billion worth of sales in doing so. I would guess that after five decades of experience, DWIS has a pretty good idea of how to grow in their key markets.

Notching revenues of $10.9 and $3 million for fiscal 2006 and Q4 '06 respectively, DineWise has recently made the transition from a door-to-door, direct-to-consumer business model to a more robust, multi-faceted strategy driven by e-commerce and direct mail catalogs. The decision just makes sense on so many levels.

2006 was a monumental year for the good folks at DWIS; the company launched a complete re- branding and an improved business model that helped expand its serviceable market from 33 to 48 U.S. states (Sorry Alaska & Hawaii). Although year- over-year and fourth quarter revenues are indeed down in comparison to 2005, sales of DineWise (r) branded products, or the company's new bread and butter (no pun intended) increased to $1.1 million in 2006 for a 343% jump over '05 figures. The new brand actually experienced significant growth in each consecutive quarter during '06. Check it out:

(Data courtesy of DWIS)

- First Quarter 2006 - $81,000
- Second Quarter 2006 - $166,000
- Third Quarter 2006 - $279,000
- Fourth Quarter 2006 - $541,000

Total: $1.1 Million

In addition to growth of the DineWise (r) brand, recent corporate announcements highlight a ton of other positive news that exemplifies the progress made at DWIS during 2006.

- Newly acquired customer accounts increased 33% in Q4
- Newly acquired customer accounts increased 10% in 2006
- Net losses available to common stock holders dropped 4% in 2006
- Net loss per share in Q4, '06 was down 38% in comparison to the same reporting period in 2005
- The company has generated annualized cost savings of approximately $1,000,000 through new fulfillment outsourcing and other cost cutting programs

According to data released by DWIS, in 2006 the DineWise (r) brand had approximately 10,000 customers from which it generated $541,000. This works out to about $54.10 per customer each year. The company also stated in a release dated 12/27/06, that it plans to increase the DineWise (r) customer base to 25,000 by the end of 2007. This type of expansion, assuming the company just maintains its current per customer revenues, would result in revenues of nearly $3.4 million. Coupled with additional revenues (totaling $9.8 mil in '06) that are likely to grow as a result of the company’s improved and more aggressive business model, this amount of growth should create a very exciting situation for investors by the end of 2007, if not sooner.

A testament to the company's future potential in our opinion is the fact that up until now, DWIS had made no move to target new niche markets including Business-to-Business/Corporate Incentive and Rewards; Senior/Caregiver and Diet Management. It appears that things have changed, in a major way. The company is now leaving no stone unturned in its quest for domination of the in-home dining solutions market.

If DWIS is able to keep pace with recent expansion and continue to maintain relationships with longstanding customers, we see a tremendous upside to this company; particularly at current levels. We suggest you take a look at the DineWise website: www.dinewise.com. Worst case scenario: you get some delicious food at an affordable price.

Labels: DWIS, Newsweek

Up nearly 30% early on in today's trading, Naturewell Inc. (OTCBB: NAWL) is making some noise. NAWL announced today that it has become an Authorized Vendor of Chiropractors Buying Group, Inc. ("CBG") (www.cbgsave.com).

With more than 4,000 chiropractor members, the CBG is the leading buying group in the chiropractic industry (one of NAWL's key target markets!).

Backing from such a well-respected industry authority can only have a positive impact on sales going forward in our opinion. With the company's core addressable market in the U.S. pegged at more than 217,000; today's news represents a huge step in the right direction.

Labels: Migraine, Migraine Headache, Naturewell, Naturewell Inc., NAWL

Challenger Powerboats Inc. (OTCBB: CPWB) is out with major news today that again proves its recent acquisition of IMAR Group was a very slick maneuver indeed. Besides signing on four new boat dealers; CPWB announced this morning that it has received orders for 19 Sugar Sand boats valued at more than $450,000.

Add this $450K on to the $1 million or so in revenues generated by newly acquired business segments (Gekko & Sugar Sand) since January and one can make a very compelling case for Challenger’s growth going forward.

Banner Year in ’07?

The company’s recent revenue surge is quite impressive since Challenger (then Xtreme Companies Inc.) notched only $1.8 million in ’05 revenues. On the other hand, 2007 was already shaping up to be a banner year at CPWB prior to the big acquisition.

Challenger had significantly drilled down operations, brought on an all-star cast of battle-tested industry executives, and launched its first ever sales/marketing campaign and dealer network strategy. With restructuring in its rearview mirror, Challenger was well-poised to improve on 2006 revenues, which seem to reflect the company’s transitional period.

The addition of IMAR group, which notched more than $12 million in un-audited consolidated ’06 revenues, brings with it an added boost both operationally and financially. In addition to a fast growing and very sizable dealer network that currently exceeds 100 affiliates, IMAR is already contributing significantly to a surge in ’07 revenues.

Commenting on today’s news CEO Laurie Philips stated “We continue to see good order flow for our Sugar Sand jet boats and more dealers continue to sign on to carry this line. As we have previously stated, the jet boat market represents one of the fastest growing segments of the overall recreational boating market, and feel we are well positioned to benefit from these positive dynamics.”

By the Numbers

Very conservatively, if Challenger is able to derive $2 million in revenues from sales of Challenger branded boats and $8 million through shipments of Sugar Sand and Gekko boats during 2007, $10 million would be added to the top line. An increase of this stature would exhibit exponential growth on a year-over-year basis, particularly as CPWB’s revenues for the first three months of 2006 were 829,000.

In today’s economy; 2007 revenues in the ballpark of $10 million would undoubtedly translate into a grossly higher share price (at least fundamentally speaking) than we see today. We suggest you take this into close consideration when highlighting your “companies to watch” list for the new-year.

Labels: Boating Industry, CPWB

Good morning! The following press release went out this morning and announces the sale of our CEO700 units to Beltrami Electric Cooperative of Minnesota. This is the first order from Beltrami, who tested our units in 2006, liked how they performed, and decided to place this order. This order was also facilitated by one of our sales reps, RESCO, and I’m always pleased when a sale is brought to us by a rep. Customers like Beltrami have not yet seen the web-enabled interface that I discussed publicly in the press release last week. It is our goal to get this out sometime during this second quarter to our customers like Beltrami, and I believe this will set the stage for additional orders from our existing customers down the road….

Also, I know that some of you have been looking for the release of our 2006 results (I’ve already commented that revenues were up 70% year over year). On Monday of this week, we filed for an extension from the SEC, allowing us to file those results on or before April 16th. This extension was required because our auditors need some extra time to complete their work – it is not any indication of any problems, and we expect to file our 10-KSB within the time permitted by the extension.



Have a great day!



Doug



H. Douglas Saathoff

Chief Executive Officer

Nighthawk Systems, Inc.



Nighthawk Systems Announces Sale to Minnesota Electric Cooperative



SAN ANTONIO, TX - 4/5/07 - Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, today announced that it has received an initial order for its CEO700 whole house disconnect units from Beltrami Electric Cooperative of Bemidji, Minnesota. Beltrami Electric Cooperative's service area spans more than 3,000 square miles in north-central Minnesota. This initial order was placed after testing demo units from Nighthawk in 2006. RESCO, a leader in the sales and distribution of products for the electrical utility industry, assisted Nighthawk with the sale.

The CEO700 gives electric utilities the ability to wirelessly disconnect and reconnect power to residential electric meters from a centralized location, saving them significant time and money over the traditional manual disconnect method requiring multiple truck rolls and field personnel.

H. Douglas Saathoff, Nighthawk’s CEO, stated, “I’m pleased to add Beltrami to the growing list of electric cooperatives and other utilities who are utilizing the CEO700. Once again, successful initial testing of our device has lead to the implementation of a new automation program and a new Nighthawk customer. We look forward to working with Beltrami as they implement their automation program.”



Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company’s website at www.nighthawksystems.com.



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 40 states. Nighthawk's products also enable custom message display, making them ideal for use in traffic control and emergency notification situations.



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:



Doug Saathoff

dsaathoff@nighthawksystems.com
(877) 7-NIGHTHAWK, Ext 701

Labels: Nighthawk Systems, NIHK

MicroStockProfit picks up coverage of EGPI Firecreek, Inc.

Recently bringing its 3rd well online in the Ten Mile Draw (TMD) prospect area in Green River Basin, Wyoming, EGPI Firecreek, Inc. (OTCBB: EFCR) has surfaced on our radar screen due to its high potential - particularly in comparison to a very affordable share price (closed at .0065 on 4/3).

For those of you unfamiliar with the company, EGPI/Firecreek, Inc. through its Firecreek unit is focused on oil production with an emphasis on acquiring existing oil fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories on an international basis. Other companies in the oil sector include Pantina Oil and Gas Inc. (POG), Frontier Oil Inc. (FTO) and Cabot Oil & Gas Inc. (COG).

With aspirations to expand the TMD project to soon include 11 functional wells and possessing a plethora of invaluable business relationships in hard to penetrate regions such as Eastern Europe, EFCR is well-poised to generate significant revenues over the near to mid-term.

Short Term, we believe EFCR could double from yesterdays closing price of $0.0065!

Letter from the President
March 26, 2007
To Our Shareholders

We are extremely pleased with the progress we have made over the past year in our expansion of gross profit and margins. This has been due in large part to our focus on streamlining our operations as well as increasing revenue in higher margin segments of the business such as customer support. We will remain committed in the future to building and maintaining the highest quality of revenue that is possible, so that we can achieve our goal of reaching profitability.

Over the past year, we have also been able to reduce our selling, general and administrative (SG&A). We believe this demonstrates the higher level of efficiency that we are creating from an operational and selling perspective.

Although we are pleased to report this progress, we will not be satisfied until we create a profitable business. We have entered the new year prepared to capitalize on our strengths as technology innovators and leaders.

The Marketplace

We believe that we are in the third stage of the Internet’s evolution in the hospitality industry. In stage one, from 1999 to 2002 or so, service providers invested millions in a go-to-market strategy that entailed providing major hotel brands with their IP equipment, often relying on a revenue-share model with the hotels’ pay-per-usage Internet service model to the guests to recoup their investment. At this point, high speed Internet service was predominantly available only in the larger 4 and 5-Star Hotels. The demand for high speed Internet access was present amongst guests, but it was not a determining factor in hotel selection. In stage two, through 2005, small-to-mid sized hotels moved to adopt high-speed Internet access and service providers adjusted their business models to address the deployment opportunities that this segment of the market represented. Through this period, Internet usage in hotels steadily increased and guests became increasingly sophisticated therefore demanding a strong Internet signal and seamless Internet service in the room.

In addition, as high-speed Internet access became ubiquitous in the hotel environment, simply offering the service was not enough to differentiate the hotel’s offering. Consequently, in order to maintain guest loyalty and retention, an increasing number of hotels and brands began to feel the pressure to offer high-speed Internet access for free to guests as an amenity. So what was once a revenue center for many hotel properties has now become commoditized and is now a straight cost center.

Today’s environment is a complex one for hoteliers. Guests are highly sophisticated Internet users and they expect to have seamless in-room service that accommodates file-sharing, multi-media usage and other applications that tax the hotel’s network. Meanwhile, hoteliers are faced with increasing network costs driven by increased traffic and maintenance with pressure to provide superior service, and with a diminishing realizable return on investment on their infrastructure spending. JD Powers has recently reported that the number one complaint for guests in the hotel environment is poor Internet service.
We believe that our company is positioned well to address the complexities in the market today, both to the guest and to our hotel customers. Our development path has consistently been aimed at building solutions that provide hotel customers with a heightened level of transparency on their networks and ability to effectively as well as efficiently manage them.

In addition, we have differentiated our service offering by building and maintaining a world-class call center that provides guest support 24x7x365. Our IP management system is incomparable in its ability to proactively monitor and report activity on the network. The result to the hotel customer is better management capabilities, a more efficient network and reduced customer support activity.

Content is King - Superclick MDS (Media Distribution System)
Perhaps the most exciting development in the past year has been the Superclick MDS (“MDS”). Critical to its success, MDS addresses a significant pain that hoteliers are experiencing in today’s marketplace, which I alluded to above. Namely, MDS offers hoteliers the opportunity to recapture ROI on their network infrastructure investment.
MDS is a powerful content delivery application that enables targeted content, advertising and affiliate purchasing opportunities to be distributed to guests accessing the Internet on any IP gateway, whether it is managed by Superclick or by one of our competitors.

The online advertising market has become a $12 billion industry and online advertising has become a staple of every marketing director’s budget. Now, with MDS we can enable hotel and convention center customers to leverage their IP network to deliver millions of targeted impressions to their users. The power of MDS is not only its ability to deliver highly targeted content on the fly, or its flexibility to build campaigns based on number of impressions delivered, or time-based delivery, but in its interoperability with competing IP gateways. It does not matter whether the network provider has our SIMS gateway or one of our competitors’ gateways managing their network, MDS is compatible with it and can provide that network manager with a tool to leverage his or her network to create a new and powerful branding and advertising center.

We are currently in various trials within North America with MDS select properties and convention centers and look forward to rolling MDS out on a mass scale later this year. We believe that MDS gives our customers yet another reason to stick with Superclick and it provides us with great opportunity to penetrate competitive accounts.

Customer Support Revenue Continues to Build

Two years ago, we recognized that the market was quickly becoming saturated and therefore realized that if we were going to survive and also thrive over the longer-term, we would need to establish a strong, recurring component of revenue to our business. We established a 24x7x365 call center in Montreal to provide customer support. Over the past two years, we have built one of the most capable support centers in the industry. Going forward, this will continue to be an important part of our business.

Our Current Debt Obligation

In August, 2005, we entered into a convertible debt financing with Chicago Venture Partners, a Chicago-based investment fund. Due to several challenges we faced in restructuring and streamlining our business throughout 2006, we have been slow to repay the debt owing to them. Consequently, we have recognized approximately $160,000 over the past year in interest expense. However, throughout this challenging period, Chicago Venture Partners has been an amicable business partner and we are now positioning ourselves to restructure our debt and to begin paying down both principal and interest in a much more timely capacity going forward. We believe that Chicago Venture Partners will continue to work with us throughout this process.

Committed to a Strong Future

In all of our business segments, we will continue to invest in technology and process improvements that will keep our business strategically competitive. From helping our employees to be more productive, to listening to our customers in better understand their needs we are committed to using our resources wisely in order to create the best opportunity to succeed in a competitive market place while creating value for our shareholders.

As we position our company for the future, we will continue to strengthen our board of directors as well. Our directors have reiterated their commitment to increase and maintain a high level of independent representation, as well as its commitment to ethical business conduct and legal compliance. Our company’s growth in the past year supports this conviction.

As we look to the future, we wish to extend our gratitude to each of you – our shareholders, our customers and our employees – for your invaluable support. These are exciting times for us all. We look forward to continuing to build on Superclick’s strength as we move through 2007.
Thank you for investing in us.
Cordially,
Sandro Natale
President and CEO

Labels: SPCK