SOURCE: NewMarket Technology, Inc.

NewMarket Technology, Inc.

September 17, 2009 09:54 ET

NewMarket Technology, Inc. Discusses Forbes Magazine's Attention to Penny Stocks and a United Nations Presentation on Micro Equity Investments

DALLAS, TX--(Marketwire - September 17, 2009) - NewMarket Technology, Inc. (PINKSHEETS: NWMT) today released a letter to shareholders from CEO Philip Verges. Mr. Verges has written a personal letter to communicate NewMarket's strategy to align share price and fundamental financial performance. The letter introduces the primary aspects of the Company's strategic plan to be addressed in more detail within an on-demand Webcast to be released later today. The letter is included in its entirety below.

Dear Fellow Shareholders -

In July, I had the privilege of speaking at the United Nations (U.N.) in New York on the potential for public micro equity investments in entrepreneurial ventures to reduce poverty. It was inspiring to see the attention paid by the U.N. to the role of economic reform in advancing world peace. As the world digests the recent global economic crisis, I believe organizations such as the U.N. can help bring to light a collective understanding that the prevailing force in today's economy is now the small business sector and no longer the global Fortune 500.

The practices of premier investment banks surrounding financial transactions with ailing Fortune 500 firms have been the primary cause of the global financial crisis. The iconic veil of brand name investment banking integrity and prudent investment strategy has been lifted. As a result, the return on investment (ROI) potential of the small business sector has been given an opportunity to compete with the before unquestionable prudence of investing in the Fortune 500. Nevertheless, the public micro cap investment market that funds the now prevailing and growing small business sector has its own image problems to overcome.

One strategy NewMarket has implemented to overcome the image problems associated with public micro cap investments has been to win the support of a prominent banking professional. Retired Major General Hugh G. Robinson sits on the NewMarket Board of Directors. Amongst other credentials, General Robinson is a former Chairman of the Dallas Federal Reserve. General Robinson recently hosted a webcast on the Company's ongoing developments. The following was taken from his introduction of the webcast:

"The investments in emerging markets not only stand to deliver some of the best high growth investment returns, but at the same time emerging market investments also marry capitalism and social responsibility by bringing much needed investment dollars to regions where such investments can meaningfully reduce poverty. NewMarket is not only a promising young company with the best yet to come, NewMarket is an example of a coming economic reform with the potential to export the American dream of freedom to pursue life, liberty, and happiness. In today's world it is economic suppression not political suppression that imposes the greatest limitation on personal liberty. I believe the recognition and corresponding growth of a global small business economy will be the root of the next great social advance."

NewMarket has harnessed the strengths of the micro cap investment market to grow a start-up operation to approximately $100 million in annual revenue. The bulk of NewMarket's operations creates and sustains jobs in emerging markets and contributes to overcoming the economic suppression to which General Robinson refers. The last hurdle NewMarket faces in its journey from start-up to sustainable operation remains in the alignment of its fundamental financial value with a sustainable share price that conveys a long-term return on investment. In other words, NewMarket's share price does not today represent the Company's sustainable operational performance in comparison to similar national exchange listed companies.

Early this year we put into motion a plan to overcome this last hurdle to deliver a sustainable share price that can deliver a long-term return on investment in alignment with our ongoing fundamental financial success. As the foundation of that plan, we have recapitalized the Company and substantially reduced debt secured by potential convertibility into common stock. We anticipate the final extinguishment of the remaining debt secured by potential convertibility into common stock shortly. In a first step to upgrade our current listing, the Company's financials are audited and the corresponding current reports are on file with the Securities and Exchange Commission (SEC).

With the foundation of the plan to align fundamental financial performance and share price firmly in place, we are now building the next phase of the plan on top of that foundation. In an on-demand Webcast to be released later today, I will present a plan to issue a dividend, to list on the OTCQX as well as the OTCBB and to independently list the Company's subsidiary operations in South America similar to the current independent listing of the Company's operations in China.

In conjunction with the independent listing of the Company's subsidiary operations in South America, NewMarket has engaged in a letter of intent (LOI) with Worldwide Strategies , Inc. (OTCBB: WWSG). In addition to an independent listing, the intended transaction would also bring a key addition to NewMarket's management team. The CEO of Worldwide, James Samuels, is a senior executive with experience in graduating OTC companies to a national exchange listing. Mr. Samuels could play an instrumental role in NewMarket's plan to implement a national exchange listing in the next phase of our comprehensive strategy to align fundamental financial performance with a sustainable share price that conveys a long-term return on investment. A preview of NewMarket's national exchange listing plan will be included in the Webcast released later today.

While NewMarket works to conquer the last hurdle in its journey toward a sustainable long-term return, we still manage to deliver numerous shorter term ROI opportunities. Through our experience in the public micro cap markets, we have learned that share price and fundamental financial performance rarely coincide. We have correspondingly learned that a recurring ROI opportunity for public micro cap shareholders can be achieved by routinely taking profit from the periodic share price increases that occur often in conjunction with milestone successes. We have frequently discussed our "milestone investing" strategy to improve shareholders' return on investment potential. Recently, to further enhance the "milestone investing" potential for shareholders, we have implemented our "Greenfield" program. We have already experienced our first milestone successes through our new "Greenfield" program. I will further discuss our "milestone investing" strategy and "Greenfield" program later in this letter. Additionally, I will provide an even more detailed overview of the program in the webcast later today to include a preview of upcoming projects.

Few would argue that the publication of good news representing a milestone success for a public micro-cap company has the potential to drive a corresponding, though possibly temporary, increase in share price. Unfortunately, many would agree that the veracity of the announced good news milestone is frequently questionable. The reputation of good news to increase a share price and the corresponding reputation of good news to be of questionable authenticity defines the image issue I mentioned at the onset of this letter.

Accordingly, I know some of you will skeptically consider the intentions communicated in this letter to issue dividends and execute an upgraded listing as perhaps less than genuine. Even with the caliber of endorsement that General Robinson lends to the Company, some will still doubt the intentions communicated in this letter. I would submit the best way to judge a micro-cap company's integrity and capability for that matter, is to learn as much about the management team as possible. Actually, I would submit the best way to judge a big public company's integrity and capability is also to learn as much about that management team as possible. Educational institutions attended and previous work experiences don't tell the whole story. Meet the management team as directly as possible. In person if at all possible and through what they write in shareholder letters and what they say in press, interviews or Webcasts.

To help NewMarket shareholders and perspective shareholders learn about the founders and management team, we communicate frequently through as many formats as possible. We publish a number of news releases and letters and we conduct frequent Webcasts. We also get out and present publicly as frequently as possible. Some of you may have even traveled with us on our trade missions. We have one coming up to Africa at the end of October. Please consider joining us.

To provide you some new insight into NewMarket management and to help you in your consideration of the intentions we have communicated here in this letter, I will share some background I have not communicated before on the founding of NewMarket and the founders' expectations upon initially going public.

In 1995, my mother lost an 18 month battle with cancer. I had just turned 30 years old at the time. She was only 56. All the reprimands, verbal accolades and inspirational speeches my mother regularly distributed to my siblings and me throughout her life seemed to be underlined and emphasized with an exclamation point in my memory after her death. What seemed corny at the time, in her passing, turned profound if not prophetic. "You are all so smart and capable," she said, "if you could just figure out something constructive to do together." I think we were beating the living daylights out of each other at the time, but in 1997, a ghost was inspiring us to launch a family business and NewMarket was born. She was an influential spirit. Even our father, who had reached the peak of a 30-year career, voluntarily exited to join us in 1997 well before his peak opportunity had run its course.

In 2002, we reverse merged our 1997 private technology start-up into an over-the-counter listed company. We were convinced at the time that the over the counter market was just a miniature replica of the New York Stock Exchange. We expected that as we grew the operation, the share price would follow and in no time the Company would be listed on the New York Stock Exchange. We had numerous institutional investors reinforcing our expectations and offering financing to fund our meteoric growth. Then the share price started to descend in spite of the continued operational growth.

We tried to get our arms around the operational and share price performance disconnect. With so much conventional market wisdom supporting the miniature replica of the New York Stock Exchange expectation, anything but New York Stock Exchange performance was aggravating. If operational performance improves, then share price should correspondingly improve and vice versa.

What we learned as we endeavored to understand the disconnect between operational and share price performance is today the foundation of our "milestone investing" strategy and our "Greenfield" program. NewMarket's share price and operational performance disconnect is not unique or even exceptional. On the over-the-counter market, a share price and operational performance disconnect is routine. A long-term return on investment strategy for an over-the-counter listed company, in our opinion, is predicated upon an exit from the over-the-counter market. Nevertheless, the over-the-counter market can provide tremendous returns on smaller and shorter term investments by taking profits on the periodic increased share price potential of a company's milestone successes.

As I mentioned above, NewMarket has consistently delivered ROI opportunities over the last several years through its periodic successes and corresponding "milestone" share price increases. Through our "Greenfield" program we intend to continue delivering "milestone" return opportunities. With the plan I have outlined here, and will further detail in our Webcast later today, we intend to jump our last hurdle and deliver a sustainable long-term return. Once we have validated our strategy to transition from a "milestone" ROI opportunity into a sustainable long-term ROI opportunity, we will then refine the strategy from lessons we will undoubtedly learn along the way. Finally, we will set out to repeat the transition strategy with those "Greenfield" projects that grow into a sustainable long-term ROI opportunity.

Our perspective on the over-the-counter disconnect between share price and operational performance and our corresponding "milestone investing" strategy has been met with mixed reviews in the past. However, now that brand name investment banking integrity and investment strategy prudence has been brought into question, with increasing frequency, you can find other sources describing the same disconnect. For instance, in the September 7th issue of Forbes, in an article titled "The Hedge Fund Shuffle," Nathan Vardi, a regular Forbes contributing writer, describes penny stocks as "... shares in companies whose market values are completely disconnected from fundamentals like earnings and book value..."

General Robinson's credentials and experience are of tremendous benefit to the Company, but of even more value is his lifelong commitment to public service. Some of you may be aware that in addition to a long career in the Army and his service as the Chairman of the Dallas Federal Reserve, General Robinson also served on President Johnson's staff. With General Robinson's help, it is my hope that NewMarket's experience will be a positive case study and example for other start-ups, early stage company's and high growth entrepreneurial businesses as well as case study and example for retail investors as they peruse investments in other public micro-cap companies.

I am now closer to my mother's age when she battled cancer than I am to my 30th birthday when NewMarket was just becoming a gleam in my eye. Yet still, the underlined and exclamation punctuated reprimands, verbal accolades and inspirational speeches remain as an ongoing inspiration for me and my siblings. Even my father is in the office every day. Currently he is coordinating our upcoming African trade mission. The ghost that inspired our launch remains a muse.

We are more committed than ever to NewMarket's long term success. Granted, our personal success is irrevocably connected to NewMarket's success and that is a strong motivation. However, in our ongoing communications with shareholders and other public micro cap company managers, we recognize that we have not been alone in our struggle to reconcile our original miniature replica of the New York Stock Exchange expectation with our actual experience and we are moved to make NewMarket a success and an example of public micro cap investment expectation that can work -- for NewMarket shareholders and all public micro cap investors.

Thank you for your time and consideration. I hope you will also take the time to listen to our Webcast today.

Best Regards,
Philip

Philip Verges
CEO and Founder
NewMarket Technology, Inc.

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

NewMarket is a reporting company with audited financial reports filed with the SEC. NewMarket provides systems integration, technology infrastructure services and emerging technology worldwide. NewMarket has a focus on providing technology and support services to rapidly growing economies where technology purchasing is on the rise. In addition to its base of operations in North America, NewMarket has operations today in the growing economies of China, Southeast Asia, Brazil and Northern Latin America. Last year the Company reported over $40 million in revenue from Asia and over $20 million in revenue from Latin America. Overall, NewMarket reported over $95 million in revenue for 2008.

Across the globe, NewMarket is a Microsoft and Oracle partner, distributes various computer hardware and peripherals from brand partners such as Dell, HP, IBM, Cisco, Sony, Epson, Canon and Sanyo and is also an authorized reseller of operating systems and various software from companies such as Red Hat, Sybase, IBM, BEA, Veritas and others. Additionally, the Company works with emerging technologies such as mobile computing, various security and wireless broadband technologies.

NewMarket's rapid growth since 2002 has placed the Company on the Deloitte Technology Fast 500 for 5 consecutive years. NewMarket was recognized as the third fastest growing technology company in the United States in 2006 and the number one fastest growing technology company in North Texas for two years in a row.

"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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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