SOURCE: NewMarket Technology, Inc.

November 18, 2008 15:09 ET

NewMarket Technology, Inc. Provides Fresh Perspective on Economic Recovery After Reporting 36% Net Income Growth on $76 Million in Record YTD Revenue

With Award Winning 3,000% 5 Year Growth, Management Shares Growth Strategy Highlights and Insight Into New Investment Opportunities in Financial Industry Crisis

DALLAS, TX--(Marketwire - November 18, 2008) - NewMarket Technology, Inc. (PINKSHEETS: NMKT) recently filed SEC Form 10-Q reporting the Company's financial performance through the third quarter of 2008.

NewMarket reported $76 million in revenue for the first nine months of 2008 with net income of $3.7 million. Net income increased 36% and revenue increased 20% in the first nine months of 2008 compared to the same period last year.

NewMarket has experienced award winning growth over the previous five years. The Company attributes its growth to the early recognition of a major landscape shift in the global economy. Management is optimistic that the current financial industry crisis will bring overdue attention to this major landscape shift and that NewMarket and its shareholders will be rewarded for its early participation. The CEO has written a letter to highlight this change in the economic landscape and to discuss the opportunities for NewMarket and other companies, as well as investors.

Dear Fellow Shareholders and Small Equity Investors -

At NewMarket, we see a silver lining within the current global economic concerns. No, we don't think we can blindly ignore and avoid a downturn in the economy. However, we do see the issues within the financial industry as an opportunity to bring attention to a long overlooked business sector -- a business sector that happens to account for the majority of economic activity around the world with historically little attention from Wall Street. As Wall Street struggles to recover, we are optimistic that this previously overlooked business sector will finally get the attention it deserves as institutions search for strength in the market.

The 20 Year Rise of Global Small Business Solutions and Demand for Technology Solutions

NewMarket was founded over ten years ago on the recognition of an opportunity created by the shifting landscape of the global economy. That shift is the continuing segmentation of mass markets and the ongoing fragmentation of production. The commercialization of the Internet more than 20 years ago has driven this market segmentation and production fragmentation. With a virtually infinite number of choices, consumers can customize almost any product or service to their specific individual requirements. Market pie charts have more slices than ever before and small businesses are accounting for more and more of those small slices. Production fragmentation is increasing as big businesses continually seek to save money by hiring small businesses to replace an increasing number of business functions formerly provided at a higher cost by in-house departments. Segmentation and fragmentation is a global phenomenon, with small businesses from all over the world meeting the proliferating segmentation of market demands and the ever increasing big business requirement to reduce operational expenses. NewMarket's award winning growth over the previous ten years has resulted from servicing this global phenomenon.

Nothing Small About Small Business

The statistical significance of the growing small business sector can be seen in publicly available data assimilated by the Small Business Administration Office of Advocacy (http://www.sba.gov/advo/) and the United States Census Bureau (http://www.census.gov/epcd/www/smallbus.html). The data available from these two organizations shows that half of the United States GDP and employment comes from small business even before the inclusion of self-employment. Another way to convey the magnitude of the economic impact of small businesses is to consider that of 5.6 million registered businesses in the United States, only 31,000 realize more than $50 million in annual revenue. Less than 2,000 U.S. firms have more than $1 billion in annual revenue. Those firms with $50 million or less in annual revenue account for half of the employment in the United States.

Neglected, Underappreciated and Difficult to Invest

While the largest business segment contributing to employment and the gross domestic product consists of businesses with less than $50 million in annual revenue, little opportunity exists for the general public to invest in these businesses. Likewise, these small businesses have little access to equity financing or debt with equity as collateral. Small businesses seeking access to equity investing are usually relegated to angel investing, venture capital or public capital available through listing on an over the counter quotation system. There are few accepted, let alone regulated standards for angel investing or venture capital. SEC standards do exist for small publicly traded firms just as they exist for large publicly traded firms, but the regulations are problematic to small firms and the retail investors in small firms. Regulations, particularly since the advent of the Sarbanes-Oxley Act, place an extraordinary regulatory compliance expense on small businesses in terms of the expense as a percentage of revenue when compared to a large publicly traded firm. Former Chief Counsel for the SBA Office of Advocacy Thomas M. Sullivan said in his written testimony submitted to the Senate Small Business and Entrepreneurship Committee that:

"There is a compelling record demonstrating that the costs of complying with [Sarbanes-Oxley] Section 404 are large and disproportionately high for small public companies... Advocacy believes that the excessive cost of Section 404 internal controls reporting may restrict a new generation of small innovative companies from seeking capital in the U.S. capital markets."

According to a recent United States Government Accounting Office (GAO) study, the cost of compliance and the time needed for small public companies to comply with Sarbanes-Oxley regulations has been disproportionately higher than for large public companies. Firms with assets of $1 billion or more spend just thirteen cents per $100 in revenue for audit fees, while small businesses are forced to spend more than a dollar per $100 in revenue to comply with the same rules.

Social Evolution and Advance

The current financial industry crisis is much more than an economic issue. The crisis is impacting the daily lives of millions around the world. Individual livelihood is at risk or even damaged. Jobs and homes have been lost. The financial industry crisis is a social calamity of yet unknown scale.

The Stock Market Crash of 1929 and subsequent Great Depression were comparative social calamities, but hopefully more severe than the ultimate turnout of the current financial industry crisis of 2008. Slavery and the Civil War were also social calamities of a different nature. Social prejudice of sex and race differences is yet another example of social calamity. In each case, a reactionary social movement has ensued to overcome the social calamity. The prevailing government at the time of each social calamity and the general population has interacted in various cooperative and combative relationships to mitigate or overcome the calamity. For example, slavery was fought by Abolition. The post Civil War period is known for the Emancipation Proclamation and the Restoration Period. The 1929 financial crisis was met with the New Deal. Prejudice in the United States has been fought notably by the Civil Rights Movement and Women's Suffrage.

Though damaging already with unknown damage likely yet to come, from a historical perspective, the financial industry crisis of 2008 is the type of social calamity that in the end brings overwhelming social improvement. To learn more about the interrelationship between social calamity and social progress, you can research the science of "social vulnerability." Simply type the words "social vulnerability" into a Web search field. Social vulnerability research has become a deeply interdisciplinary science, rooted in the modern realization that humans are the causal agents of disasters. The desire to understand geographic, historic, and socio-economic characteristics of social vulnerability motivates much of the research being conducted around the world today.

The New Wall Street

The Civil Rights Movement was the outcome of extreme racial injustice. The United Nations evolved in the aftermath of two World Wars and mass genocide. The Labor Union Movement was a reaction to egregious worker abuse that diminished human dignity. The Constitution of the United States and Declaration of Independence were a citizen revolt to tyranny. The Human Race consistently rises to the occasion in the face of social calamity.

The current financial industry crisis is unlikely to be the social calamity that stumps the Human Race. As taxpayers and voters, and frequently as shareholders and property owners, all of us share a vested interest in an improved investment environment surrounding the small business economy. A new Wall Street of the 21st Century will emerge from the current financial industry crisis with a new appreciation for investment in the small businesses filling the gaps in the continuing market segmentation and the ongoing production fragmentation.

We see a silver lining in the current financial industry crisis and that silver lining is a thriving small business sector growing in reaction to the Internet driven market segmentation and production fragmentation of the Fortune 500 economy. As Wall Street adapts its current practices to adjust to the shifting economic landscape, we believe companies such as NewMarket will benefit from a new era of investment interest. It will not happen overnight and the economy will likely present several challenges in the interim, but we do believe the best is yet to come.

Best Regards,

Philip Verges
Founder and CEO
NewMarket Technology, Inc.

Third Quarter Financial Webcast

NewMarket management will conduct a Webcast, Friday, November 21 at 12:00 pm EST to review third quarter 2008 financials.

A link to the Webcast will be available at the Company's corporate Website Investor Relations page at www.newmarkettechnology.com/investor-relations.htm under "Current Events and Communications." An archive of the Webcast will be available afterwards for review.

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 helps clients maintain the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified systems integration and maintenance services to support the prevailing industry standard solutions from companies such as Microsoft, Oracle, Infor, 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.

The company has continued its rapid growth, reporting $77.6 million in revenue with a net income of $5.8 million in 2006 and most recently $93.1 million in revenue with a net income of $7.3 million in 2007.

"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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