SOURCE: NewMarket Technology, Inc.

December 04, 2007 11:39 ET

NewMarket Technology, Inc. Updates Website With Micros Report Research Coverage With Fair Value Target Price of $0.70 vs. Recent $0.239

CFO Philip J. Rauch Answers Shareholders' Questions on Analyst Report in Letter to Shareholders

DALLAS, TX--(Marketwire - December 4, 2007) - NewMarket Technology, Inc. (OTCBB: NMKT) today announced a corporate website update, adding the recently released research coverage from Micros Report. Michael Willingham, Micros Report Director of Research, authored the report, which includes a Fair Value Target price for NMKT of $0.70 vs. NMKT's recent close at $0.239.

The market responded positively yesterday following the release of the Micros Report. The price per share increased 17% to $0.239 on well above average trading volume of over 2 million shares. Yesterday's share price closed above the 20 day and 50 day moving average share price. The 200 day moving average is $0.31 and the 52 week high price per share is $0.45.

The research report is now available on NewMarket's website under "Media Center" at:

After the report was filed, the Company received a number of questions from shareholders regarding the report. NewMarket's CFO, Philip J. Rauch, has addressed the questions in a letter to shareholders. The letter is included in its entirety below:

Dear Fellow Shareholders:

I believe the analyst report speaks for itself and I encourage shareholders and interested investors to review the report and the Company's public filings. The Company is fully reporting and all the company's public filings can be found at

The purpose of my letter today is to briefly address some questions received yesterday from shareholders regarding the Micros Report analyst coverage.

Independent Analyst Coverage

NewMarket entered into a contract with Micros Report for Michael Willingham, the Micros Report Director of Research, to research, review and report on NewMarket Technology, NewMarket China, and the operations to be consolidated into NewMarket Latin America. Separate reports will be published on NewMarket China and the operations to be consolidated into NewMarket Latin America in the future.

It is not unusual for a Company to pay for analyst coverage -- particularly OTCBB listed companies. Uncompensated analyst coverage of OTCBB listed companies is almost non-existent without the prospect of substantial investment banking fees. Analyst coverage of big board listed companies is ultimately paid for by institutional investors. The institutional investment community pays to subscribe to analyst publications and attend analyst conferences which, in turn, pays for the analyst coverage. Since little institutional investment exists in the OTCBB market, little compensation opportunity exists for analyst coverage outside of the reviewed company paying to engage the analyst.

Micros Report's coverage of NewMarket is independent, even though NewMarket compensated Micros Report. In order for Micros Report to maintain their reputation to their followers, they must do independent, thorough and fair research coverage of all the companies they cover. By comparison, we have an independent accounting firm who is engaged by the Company to perform our audit services and is similarly compensated by the Company.

Target Price Calculation

A number of methodologies exist for calculating a target share price or a potential future share price. The purpose of undertaking an exercise to calculate a target share price or potential future share price is to provide a relative reference by which to consider a current share price. For instance, is the current share price too low and a good buy, or at a high suggesting a good time to sell?

The recent report published by Micros Report provided a broad spectrum of methodologies to determine a target share price. The Micros Report coverage considered target share price on a basis of corporate earnings, sales, book value and discounted cash flow. The ultimate target price in the Micros Report was an average of all the target share prices determined by each of these target share price methodologies. I recommend that shareholders and interested investors review each of the target share price methodologies considered in the Micros Report coverage.

In my opinion, the share price methodology that best reflects NewMarket's share price potential is the price to book (P/B) analysis. Public companies infrequently have a share price that represents a market capitalization less than the book value of the Company. I might be concerned that the current share price reflects a discount to book value and NewMarket could be considered to be a takeover candidate. However, a takeover strategy would require an order of 100,000,000 shares to be purchased in the open market to acquire a majority interest. The buying to acquire such a large number of shares would likely result in a sharp share price increase that in turn would eliminate the P/B discount that made a takeover initially attractive.

The Micros Report coverage is encouraging. The coverage is another indication that although NewMarket's reported fundamental financial performance is simply not reflected in the current share price, the underlying value nevertheless exists. NewMarket management remains confident that the Company's underlying value will in time be reflected in the share price as the company continues to build revenue and profitability, along with further increasing the book value.

Please remember to review all the Company's filings when considering an investment in NewMarket. Also, please continue to send us your questions and comments to or 214-722-3059. Your feedback helps us to improve our communications to shareholders and interested investors.

Best Regards,

Philip J. Rauch

Chief Financial Officer

NewMarket Technology, Inc.

To be added to NewMarket's corporate e-mail list for shareholders and interested investors, please send an e-mail to

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 such as Microsoft, Oracle, 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. Some emerging technology solutions NewMarket provides include VoIP, Broadband Wireless and Security.

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.


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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