SOURCE: NewMarket Technology, Inc.

NewMarket Technology, Inc.

February 11, 2009 09:59 ET

NewMarket Technology, Inc. Releases Letter to Shareholders

DALLAS, TX--(Marketwire - February 11, 2009) - NewMarket Technology, Inc. (PINKSHEETS: NMKT) today released a letter to shareholders from CEO Philip M. Verges. The letter, included in its entirety below, provides a brief operational update on the Company.

Dear Fellow Shareholders:

I do not think any of us that have held NewMarket stock six months or more are happy with the current share price. While NewMarket is far from being the only publicly traded company to have experienced a share price decline, I do not think many of us are taking solace in the company of others.

The financial crisis is certainly an easy explanation as to why our share price is so low. Nevertheless, the depressed share price can lead to a nagging concern as to the overall viability of the Company's ongoing operations.

The purpose of this letter is to provide a brief update on the Company's operational performance in order to alleviate any nagging concern and furthermore to highlight the opportunities for NewMarket to flourish in spite of the prevailing economic crisis. In upcoming communications, the Company will present more comprehensive updates on the Company's operations, independent subsidiary listings, senior debt facilities, and strategic initiatives to drive ongoing growth and the alignment of financial performance and share price.

I have a reputation for writing long letters, and I certainly have a lot to say about the current share price, the Company's performance and the Company's future prospects. To avoid writing a War and Peace length letter here, I am going to stick to highlights.

In answer to some recently submitted shareholder questions, yes, we plan to continue filing periodic financial reports in compliance with SEC reporting requirements. Our 2008 audit is currently underway. Yes, we are also still working toward an exchange listing. And yes, we still expect continued sales growth and fundamental financial improvements in 2009. We have already signed our first new major contract in 2009 expected to contribute over $5 million in revenue this year.

Furthermore, let me provide insight into management's commitment. It is important for you as a shareholder to know where management's commitment comes from. Launching an early stage company and seeing a start-up through its various stages of growth is not for the faint of heart, let alone with the added burden of a historic, global economic crisis.

We have a big vision and a long-term view. We have had growing pains, but our growth has been substantial. We were a less than $1 million in annual revenue Company in 2002 and in 2007 we reported $93 million in revenue. We continued to grow sales in 2008 with improved operating margins and we look forward to reporting our results.

We do expect the global financial crisis to present issues. I believe it would be naïve to think otherwise. At the same time, we also expect the global financial crisis to present new opportunities. We are working diligently to be prepared for those opportunities. In pursuit of such opportunities, our management team has traveled extensively in January meeting with regional Company management as we wrap up 2008 and kick off 2009 and evaluating those new opportunities. In upcoming communications, we plan to discuss specific issues presented by the financial crisis and also discuss specific opportunities.

I believe every company and every family needs to consider its future financial prospects in a global framework. Few, if any of us will escape feeling the impact of the global financial crisis. History is in the making all around us and I firmly believe that out of our shared difficulties will be forged a better economic, political and peaceful future.

The signs of a better future are clearly present amidst the headlines of financial woe. Central amongst those signs is the inauguration of the 44th President of the United States -- truly a global, landmark event. The election of the first African-American President represents the enduring growth of democracy and a renewed hope for future democratic achievements. Obama's Presidency is a beacon to the world that democracy and the individual liberty it protects is not just an ideal, but a reality that can be achieved by all. The recent inauguration and the current financial crisis is cause for us all to reflect on our values, personal commitments and reevaluate our ongoing plans.

Over the past years, NewMarket has managed through the challenges of the small business capital market to build a sound business operation. The business operation has consistently grown every year since 2002. For the last two years all the growth has been organic. The remaining challenge for NewMarket to overcome in order to deliver a return on investment to its long-term shareholders is to break through the constraints of the small business capital markets to realize an alignment of the underlying operational value of the company with the share price. I am resolved to seeing NewMarket deliver a return to its long-term shareholders.

2009 will be an eventful year. The financial crisis will add its own challenges, but at the same time we believe the financial crisis is also creating new opportunities. We have many changes coming this year in order to break through our current small business capital market constraints and deliver a return to shareholders. We will continue to communicate regularly in letters, press and multimedia presentations to keep all informed as we navigate all of the changes that lay ahead.

Thank you for your continued support --

Philip M. 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 or call 214-722-3065.

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 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.


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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