SOURCE: NewMarket Technology, Inc.

September 18, 2008 11:47 ET

NewMarket Technology, Inc. CEO Addresses Current Share Price Performance Compared to Recent Fair Value Target Price of $0.78 and Outlines Management Buyback Plan

DALLAS, TX--(Marketwire - September 18, 2008) - NewMarket Technology, Inc. (OTCBB: NMKTE) today released a letter to shareholders from CEO Philip Verges. In the letter, Mr. Verges addresses share price performance in 2008 with a recent close of $0.09 compared to the Company's book value of $0.29 per share and the fair value target price recommendation at $0.78 per share. Mr. Verges goes on to outline management's buyback plan.

The letter is included in its entirety below.

Dear Fellow Shareholders -

The recent events within the financial industry are historic. The serial failure of one major financial institution after another is nothing short of frightening. The government bailouts and policy reactions are less than comforting. While the failures themselves are historic, the most history making event is yet to be seen -- the recovery.

An Historic Recovery

The U.S. economy is far from down for the count though many households will likely have to tighten their belts. Some jobs will be lost, some homes downsized, some vacations canceled and some retirements delayed. In spite of the recent financial industry catastrophes, the U.S. economy remains fundamentally sound. It is always important for Americans to remember that the stock market is not the economy. Just like there can be a disconnect between the fundamental financial performance of a company and its share price, the stock market's performance is not a direct indication of the overall health of the nation's economy. With that said, the problems on Wall Street can, and in the case of current events, probably will affect Main Street America. Economic growth may be offset by the debt burden resulting from the bailouts and bankruptcies, but the setbacks will be absorbed, and growth will overcome the offset. The U.S. economy is resilient and a recovery is coming.

Quietly Displacing the Fortune 500

While the Fortune 500 have been struggling in recent years, the small business sector has been growing. Companies with less than 500 employees have been hiring at a rate that exceeds the ongoing workforce reduction at larger companies. In other words, for every job lost at big companies, small business has been replacing that job and creating additional jobs. The majority of the U.S. workforce today is either self-employed or working for a company with less than 500 employees. While the financial industry has creatively structured financial products around high-risk mortgage portfolios, retail investors have yet to enjoy a standardized and well regulated small business security market. For instance, it remains to be seen if the short selling protection announced yesterday by the SEC will truly protect small publicly traded companies. The previous Regulation SHO Threshold List only includes 69 over the counter quoted companies. Regulation SHO is the SEC's attempt to track the naked shorting activity in a select group of companies and stop market manipulation as addressed by President Bush in his speech this morning. If companies like NewMarket aren't on that list, and aren't being tracked by the SEC, how can we expect to be fully protected under these new short selling regulations? With that said, we will continue to fight for the same protections being offered to large companies and hold the SEC to its promise to cease naked short selling for all companies.

SMB to Lead Economic and Market Recovery

When the dust settles from the emergency procedures to stabilize the financial industry turmoil, analysts will turn their attention from assessing the damage and begin looking for the road to recovery. Not unlike NewMarket, there are now companies of all sizes on all markets that are trading at discounted valuations because of the overall market turmoil. There are many companies that are fundamentally strong but are suffering from a crisis of confidence in the overall market. Big business, specifically the financial industry, created this crisis, but the growing small business sector seems the obvious path to recovery. They can change more quickly, they are accustomed to tighter access to capital, and they are the ones creating jobs. When investors return to the market, they will be looking for companies that are fundamentally strong and showing growth in the face of economic struggle.

NewMarket -- A Small Issuer Trailblazer

Since going public through a reverse merger in 2002, NewMarket has not only built a vibrant emerging market technology service business, NewMarket has also been a trailblazer in the small business publicly traded market. Some of you reading here have been with NewMarket through many of its trial and tribulations in the publicly traded small business market. The operation has grown impressively from $2 million in revenue in 2002 to $93 million in revenue and $7 million in net income in 2007. The Company is on track to achieve $120 million in revenue in 2008. However, the fundamental financial performance has yet to be realized in the Company's share price.

NewMarket -- Book Value $0.29 PPS vs. Market $0.09 PPS

NewMarket currently has a book value of approximately $62 million and a market capitalization value of only $20 million. The book value price per share is $0.29 compared to a recent market share price of $0.09. I know many of you fully understand the significance of this statement, but let me explain further. When valuing a profitable company that has an actual fundamental financial history, book value is typically just the starting point. The vast majority of companies are valued at a premium to book value, not a discount. The reason for this is that theoretically, if you were to shut down the business and liquidate, the book value is what you would have left. Of course, this is not an exact science, but that is the basic assumption. So, for any healthy company to be trading at a discount to book value should be a huge signal for investors. NewMarket is trading at less than one third of its book value. In my opinion, this represents an incredible opportunity for investors to own NewMarket stock at an unprecedented price. Micros Report recently released a detailed analyst report update recommending NewMarket as a speculative buy with a fair value target price of $0.78 (a copy of the report is available by contacting the Company at ir@newmarkettechnology.com).

NewMarket -- Share Price Performance in Prevailing Economic Framework

The prevailing market action is not helping the NewMarket share price, but we are not alone. Over 50% of all publicly traded companies, not just OTC quoted companies, have hit 52 week low share prices in 2008. The crisis in confidence in the U.S. stock markets is causing the share price of companies of all shapes and sizes to suffer. Most major market indexes are off 25% or more from their peaks in 2007. The Dow Jones Industrial average is at its lowest level since 2005. AIG, a component of the Dow Jones Industrial Average, is now effectively gone and has been removed from the average. The OTCBB reports share prices down 45% on average compared to last year and liquidity down 53%.

NewMarket -- Two Year Share Price Performance $0.27 PPS

A broader consideration of NewMarket's share price presents a more optimistic picture. The average share price in 2008 year-to-date is $0.14. The average share price in 2007 was $0.31. However, in 2007 the dollar value of total trading exceeded $80 million dollars and the dollar value of total trading in 2008 is approximately $16 million. In other words, there has not been a great deal of trading volume at the lower average share price in 2008. In fact, the average share price for 2007 and year-to-date 2008 combined is $0.27. While some shareholders are exiting, most are holding on.

NewMarket -- Future Share Price Performance Potential

Even at a two year average of $0.27 per share, the market price is still below the Company's book value per share. The Company's assets are increasing and liabilities are decreasing. Revenues continue to grow and margins continue to improve. The recent analyst report recommendation based on market comparables would result in a market capitalization value of approximately $150 million compared to the current market capitalization of roughly $20 million. Given the prevailing economy, market turmoil, and the current state of regulatory protection for small public issuers, management considers the optimum market capitalization unlikely, though management does anticipate dramatic share price increases are possible at any time. Fundamentally the Company is strong and growing and by generally accepted valuation methodologies, is well undervalued.

NewMarket -- Founders and Management Buyback

The NewMarket founders and management believe the optimum market value can only be achieved through a new listing on an upgraded exchange. NewMarket founders and management are currently seeking investment sponsorship to back a buyback of a controlling interest in conjunction with a move to an upgraded exchange. For more details on this topic please listen to our Webcast from last week. A link to the Webcast is available on the Company's corporate Website Investor Relations page at www.newmarkettechnology.com/investor-relations.htm titled "NewMarket Technology Year-to-Date Corporate Update" under "Current Events and Communications."

NewMarket founders and management are confident in the Company's emerging market technology service business model. We believe NewMarket's small public issuer experience presents an even more compelling return on investment opportunity in conjunction with an anticipated economic recovery lead by a small business sector.

The NewMarket management and founders remain enthusiastic about the future of the Company and committed to realizing that future. We thank you for your ongoing support. We encourage you to contact the Company to answer any questions or clarify any concerns. We welcome and encourage your feedback.

Best Regards,

Philip Verges
Founder and CEO
NewMarket Technology, Inc.

Corporate E-mail Updates

To be added to NewMarket Technology's e-mail database to receive company updates or to obtain more information on the Company, please send an e-mail to ir@newmarkettechnology.com or call 214-722-3065.

About NewMarket Technology, Inc. (www.newmarkettechnology.com)

NewMarket (OTCBB: NMKTE), previously under NMKT (OTCBB: NMKTE), 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 such as Microsoft, Cisco Systems, SAP, Siebel and Sun Microsystems. Concurrently, NewMarket continuously seeks to acquire 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 network of Solution Integration subsidiaries in North America and the leading emerging markets around the world to include, Latin America, China and Singapore.

NewMarket ranked Number One in Texas, Number Three in the United States and Number Five in North America on Deloitte's 2006 Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. Rankings are based on percentage revenue growth over five years, from 2001-2005. The Company grew from less than $1 million in revenue in 2001 to over $50 million in profitable revenue in 2005. In 2006, the company continued its rapid growth, reporting $77.6 million in revenue with a net income of $5.8 million.

Contact Information