SOURCE: NewMarket Technology, Inc.

April 11, 2007 10:55 ET

NewMarket Technology, Inc. Announces Landmark $1 Million Contract to Develop and Pilot New Technology

Contract Demonstrates Company's Success in Building R&D Alternative

DALLAS, TX -- (MARKET WIRE) -- April 11, 2007 -- NewMarket Technology, Inc. (OTCBB: NMKT) announced today the signing of a $1 Million consulting agreement to develop and pilot a proprietary technology that has already been designed. The proprietary technology is confidential pending patent protection. NewMarket launched a new business model five years ago to introduce a full-service research and development alternative including not only the engineering talent to develop proprietary technologies, but also the marketing and finance capabilities to bring new technologies to market. To date NewMarket has been its own best customer, identifying and acquiring emerging technology companies and in turn providing the necessary financing to introduce acquired emerging technologies to market. The contract today is a landmark event establishing the potential of NewMarket's alternative R&D business model to win broader market recognition.

Company Pre-Announces Record Revenue and Net Income for 2006

The company has pre-announced that the 2006 annual revenue has exceeded $74 million, surpassing the company's forecast of $70 million, and that the company has achieved a record net income of more than $4 million in 2006. The company also filed SEC Form NT to extend the reporting deadline for the 2006 Annual Report. The delay in filing is due to increased legal and accounting activity in the first quarter of 2007, resulting from the transactions executed to independently list NewMarket's Latin American and Broadband Wireless subsidiaries. The company expects to report its final results for 2006 in the very near future.

Independently Listed China, Latin America and Broadband Wireless Subsidiaries and Eventual Stock Dividends

The independent listing of NewMarket subsidiaries is an integral part of the Company's overall growth strategy and central to NewMarket's plan to enhance shareholder value. NewMarket independently listed subsidiaries can utilize their own public stock to acquire and fund further emerging technology growth without relying on NewMarket stock for financing the growth. Concurrently, NewMarket's financial performance benefits from the rapid growth of consolidated self-funding subsidiaries. NewMarket shareholders can directly monetize the investment that NewMarket has made in its subsidiaries' assets when NewMarket distributes stock in the independently listed subsidiary operations to NewMarket shareholders through dividend distributions. To date, NewMarket now has three independently listed subsidiaries. NewMarket recently announced the completion of a transaction with Diamond I, Inc. (OTCBB: DMOI) to effectively list NewMarket's Broadband wireless operations with a 2007 forecast of $10 million. NewMarket also recently announced the completion of a transaction with Paragon Financial Corp. (PINKSHEETS: PGNF) to effectively list NewMarket's Latin America operations, which are expected to report over $20 million in 2006 profitable revenue. In the fourth quarter of last year, NewMarket completed the independent listing of its operations in China. The operations name has recently been changed to NewMarket China, Inc. (OTCBB: NMCH). The operations consolidated into NewMarket China are anticipated to report 2006 revenue substantially exceeding $20 million with a 2007 forecast of $40 million in revenue. The Diamond I and Paragon names will similarly be changed shortly to reflect each company's new direction within the NewMarket fold. NewMarket intends to issue stock in each of these three subsidiaries to NewMarket shareholders through dividend distributions over the next 12 to 18 months.

Rapid Revenue Growth Noted by Deloitte and Touche Award

NewMarket Technology ranked fifth on Deloitte's 2006 Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. This is the third consecutive year that NewMarket has been ranked on Deloitte's Technology Fast 500. NewMarket Technology continues to maintain a rapid growth rate expecting to report $74 million in revenue in 2006 and $120 million forecasted in 2007.

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About NewMarket Technology, Inc. (

NewMarket helps 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 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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