SOURCE: NewMarket Technology, Inc.

March 15, 2007 09:15 ET

NewMarket China, Inc. Issues Update on Forecasted $40 Million in Revenue for 2007

CEO John T. Verges Releases Letter to Shareholders to Discuss Plans for 2007 and Beyond

DALLAS, TX -- (MARKET WIRE) -- March 15, 2007 -- NewMarket China, Inc. (OTCBB: NMCH) today issued an update on the company's forecasted $40 million in revenue for 2007 in a Letter to Shareholders from CEO John T. Verges. In the fourth quarter of 2006, NewMarket Technology, Inc. (OTCBB: NMKT) independently listed its Chinese operations. NewMarket China is now a publicly listed subsidiary of NewMarket Technology.

The shareholder letter released today and included in its entirety below provides additional detail on the company's business plan and the company's plans for 2007.

Dear Fellow Shareholders and Dedicated Investors,

NewMarket China represents the realization of a truly innovative and revolutionary business plan for the future of small business. Having been established just over two years ago in January 2005 as nothing more than a concept, NewMarket China enters 2007 as evidence that its parent company's vision is a reality.

My name is John Verges. I am the Chief Executive Officer (CEO) of NewMarket China, and I have worked with NewMarket China's parent company, NewMarket Technology, since 2002. Previously, I was a partner in a family business founded in 1997 that later became NewMarket Technology in 2002. After serving in the United States Navy as an Officer and Naval Aviator, my entire private career has been in technology. While my undergraduate education is technical, I also hold an MBA in Finance from the University of Texas at Dallas. I have been living in Shanghai working as NewMarket China's primary business development person ever since its launch. My full biography is included below. This is my first letter to shareholders, and, as has been the practice at NewMarket Technology, we will be releasing regular updates to shareholders to keep all shareholders abreast of the rapidly developing business at NewMarket China.

NewMarket Technology has been forging a new business plan that incubates subsidiary companies representing the best of emerging technologies and markets. Subsequently, these subsidiaries are developed into their own publicly traded entities able to raise their own equity capital and propagate the vision. Additionally, these subsidiaries provide the parent with a public equity that can be used in a variety of ways, including its liquidation as corporate income and/or as a property dividend to shareholders.

NewMarket China completed 2006 by reorganizing into a public shell previously named Intercell International Corporation. The combined entity is now a fully reporting and compliant company with the S.E.C. The transformation of the firm will soon be complete when it issues its transitional 10KSB, aligning its fiscal year with not only the calendar year, but with the rest of the NewMarket Technology organization.

The newly aligned fiscal year end is shaping up to be truly outstanding. From a mere concept in 2005, NewMarket China expects to report revenues in excess of $20 million.

The NewMarket China Business Plan

NewMarket China, its parent, and its sibling companies all share a common approach to developing emerging markets and emerging technologies. NewMarket China is the China regional subsidiary of NewMarket Technology, and it is well on its way to localizing the North American business plan for the Chinese market.

NewMarket China entered the Chinese market in 2005 facing the same challenges encountered by international firms, both large and small. We recognized the challenges and set about leveraging both internal and external resources to make sure we headed down the right path. While China is the fastest growing notable economy in the world, it is far from a sure thing. Even the largest firms in the world have stumbled in China. This market requires us to proactively manage its unique challenges, and we are doing just that.

NewMarket China launched operations by focusing on its historical core business, namely, systems integration. We began by selling well-known name brand hardware and software in the domestic Chinese market. This tried and true strategy has allowed us to establish a substantial customer base in a relatively short period of time. These now established and growing customer relationships can be leveraged in the future to sell new emerging technologies with higher margins.

How did we do this? Well, we didn't simply jump into the Chinese market as outsiders. We took advantage of our existing resources, and created some new ones to help us grow.

NewMarket China's sister company Infotel Technologies, based in Singapore, lent much needed expertise on the Chinese market and its business culture. Singapore represents one the most developed economies in the world, and boasts a population that is educated from birth in both Mandarin Chinese and English. There is no better stepping stone into the Chinese market than Singapore. NewMarket Technology acquired Infotel in 2003 and spent two years developing business in China before launching NewMarket China in 2005.

Beyond that, we formed a wholly owned foreign entity in Shanghai, named Clipper Technology (CLPTEC). While being a U.S. corporation in China opens many doors, it does not open all of them. Sometimes it is advantageous to deal with Chinese firms as one of their own. CLPTEC allows us to do that. In fact, we have formed a joint venture in the city of Ningbo between CLPTEC and a local conglomeration of technology companies named the Huali Group. Clipper Huali has been instrumental in helping us jump-start our core systems integration business in China.

All this would not be complete without the right people. Our key Chinese management team includes a 100% bilingual staff and, in some cases, trilingual. In addition to their language skills, their professional credentials include education at the doctorate level, extensive western market business experience, and broad work experience within the Chinese government itself, including the Chinese Embassy in Washington D.C.

Moving Forward into 2007

NewMarket China has firmly stated its goal to reach annualized revenues of $40 million in 2007. We recognize this is a lofty goal, and we want to give some insight as to our plan.

First, we will continue to grow our core systems integration business. Today, our business is prospering in the city of Ningbo in the Zhejiang Province. Zhejiang lies southwest of Shanghai and represents one of the wealthiest regions in China, as well as having cities flush with high technology firms. We plan to expand throughout the rest of the province and potentially into the adjacent provinces around the Yangtze River Delta. We have discovered a large opportunity for growth in China's second tier cities like Ningbo. These cities have a lower cost of doing business and fewer competitors.

The growth of our systems integration business has the potential to account for nearly all of our forecasted growth for 2007, but we are not stopping there. As we mentioned earlier, the NewMarket business plan includes a second stage of development which is the sale of new technologies and new services to our established customer base.

NewMarket China has been meeting with numerous potential partners in both the government and in the private sector to develop its future emerging technology business pipeline.

The Chinese Government is making enormous investment in the future of its high technology industries. This includes many things from the development of High Technology Business Parks, business subsidization, industry standardization, training, and industry awareness. These initiatives are taking place at both the national and municipal levels, and cities often find themselves competing with one another to attract new business. This is an extremely healthy and stimulating environment to be working within. NewMarket China has established government relationships in several cities, including Ningbo, Wuxi, and Hangzhou. NewMarket China is currently working directly with the Torch Center in Beijing to develop the Chinese IT Outsourcing Industry and the Shanghai Multimedia Industry Association to develop its namesake.

While our government contacts have been extremely advantageous, our relationships with private firms will ultimately prove to be what builds diversified higher margin revenue and growth.

IT Outsourcing to China

NewMarket China is building a network of partner firms dedicated to bringing China's budding IT Outsourcing capabilities to the U.S. market. While India has traditionally been the offshore resource of choice, India's own forecasts show they are unable to keep up with demand, and their prices are on the rise. In fact many of India's largest outsourcing firms have established operations in China to fill the gap. NewMarket China will bring Chinese resources direct to the U.S. market.

Mergers and Acquisitions

We are also exploring our first merger and acquisition activities. We are currently in discussions with both U.S. and China based firms that could bring us into the mobile telecommunications market, the casual gaming market, and the IPTV (Internet Protocol Television) market.

2007 is set to be a very challenging and exciting year for NewMarket China. All of us here at NewMarket China are looking forward to meeting our revenue forecast and growing our business. We will keep you informed as we progress throughout the year.

Thank you to all of our hard working staff, and to our dedicated investors and supporters.


John T. Verges
NewMarket China, Inc.
To be included on the corporate e-mail list for NewMarket China for company updates and press releases, please e-mail
John T. Verges
CEO - NewMarket China
John T. Verges has over 16 years of professional military and civilian business experience and a diverse formal education that makes him unique in his field.

Mr. Verges graduated Summa Cum Laude and number one in his graduating class from the University of Texas at Dallas with a Bachelor of Science in Management Information Systems. He also has three years of university level work in Engineering that gives him a unique technical perspective in business environments. In addition, Mr. Verges holds a Masters of Business Administration in Finance from the University of Texas at Dallas, where he once again graduated with High Honors.

Mr. Verges began his professional career as a United States Naval Officer. After serving active duty as a Naval Aviator for five years, reaching the rank of Lieutenant, Mr. Verges was honorably discharged and entered the private sector with Texas Instruments, where he specialized in semiconductor manufacturing and quality control. Mr. Verges went on to partner in the foundation and operation of several emerging technology firms over a nine year period.

Mr. Verges has continuously developed his professional and academic career. His objective has not only been to diversify his business expertise, but it has also been to develop it with an international breadth. His business and academic activities have included partnerships and operations on four continents, including Eastern and Western Europe, Asia and both North and South America. His industry experience has extended into Finance, Telecommunications, Hotel & Restaurant, Airline, Manufacturing and Technology.

As part of his involvement in technology start up firms, he has spent the past two years living and working in the Peoples' Republic of China and in 2006, was named CEO of NewMarket China, Inc.

About NewMarket China, Inc. (

NewMarket China, Inc. is a leader in the rapidly developing Chinese software engineering market providing high quality outsourcing services to global customers. In addition, the firm is a systems integrator and value added reseller of major global hardware brands in the Chinese domestic market. NewMarket China has established and continues to grow a highly capable network of Chinese IT Service partners providing domain expertise in telecommunications, multimedia, ERP and finance. Headquartered in Shanghai, NewMarket China bridges the gap between Western and Eastern business cultures to realize the advantages of the high quality, low cost technology products and services available in China. In doing so, the firm assists its clients in overcoming the challenge of taking a business global. NewMarket China comprehends the differences in business processes, communications and cultures between the United States and China, and provides its clients with an established partner who provides a winning environment for global relationships and transactions. While most firms see China as merely a cost saving alternative, NewMarket China recognizes that China represents a huge growth opportunity for its customers and supports them in localizing their products and services, and in identifying complementary revenue streams within the Chinese Market.

About NewMarket Technology Inc. (

NewMarket assists clients maintain the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions to include Microsoft, Cisco Systems, SAP, Siebel, Oracle and Sun Microsystems. Concurrently, NewMarket continuously seeks to acquire undiscovered emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions. NewMarket delivers its portfolio of products and services through its global network of Solution Integration subsidiaries in North America, Latin America, China and Singapore. NewMarket maximizes shareholder return on investment by independent listing of consolidated regional and emerging technology subsidiaries in order to issue subsidiary stock in shareholder dividends.


This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward- looking statements. These statements involve known and unknown risks and uncertainties, which may cause NewMarket's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

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