SOURCE: Newtek Business Services, Inc.

February 13, 2006 11:48 ET

RedChip Independent Initiates Research Coverage on Newtek Business Services, Inc. (NASDAQ: NKBS) With a Target Price of $3.50

WINTER PARK, FL -- (MARKET WIRE) -- February 13, 2006 --Newtek Business Services, Inc. (NASDAQ: NKBS) announced today that RedChip Independent, an independent investment research firm, has initiated coverage on the company. RedChip Research Analyst Patrick Murphy issued a Speculative Buy rating with a target price of $3.50. The report cites:

In the best case scenario, NKBS is an integrated provider of financial and non-financial products and services to SMB's with virtually unlimited growth opportunities and very attractive operating leverage translating into excellent margins. Its ability to leverage its impressive list of alliances, its ability to get its clients to buy multiple products and services, and its continued progress developing productive alliances and new business offerings will determine its long-term success.

To learn more about RedChip Research, or to receive a complimentary copy of the NKBS RedChip report, please visit www.redchip.com/subscriber.asp?page=requestNKBS. RedChip is currently ranked #1 out of 37 research firms (that cover 1-99 companies) for generating positive returns (unaudited), ranked by Investars, the premier research rating service.

About Newtek Business Services, Inc.

Newtek Business Services, Inc. provides quality financial products and business services to small and medium-sized businesses. The company's core operating segments are web hosting, merchant credit card payment processing, SBA lending, and its Certified Capital Company (CAPCO) business. NKBS distributes products and services primarily through alliances, frequently with financial institutions that maintain depository relationships with small and medium-sized businesses.

About RedChip Independent™

RedChip Independent Research, a division of RedChip Companies Inc., writes fundamental, action oriented research on small-cap companies. For investment research firms who cover 1-99 companies, RedChip is currently rated #1 out of 37 research firms by Investars, the premier research rating service, for generating positive returns (unaudited). RedChip's success has been well documented in Forbes, Barron's and the Wall Street Journal. Dedicated to "discovering tomorrow's blue chips today™," RedChip's analysts seek out undiscovered, emerging growth companies that meet the RedChip Criteria. For more information, visit www.redchip.com/independent.asp

Disclosures

The analysts contributing to the NKBS RedChip report do not hold any shares of NKBS. Additionally, the analysts contributing to the NKBS RedChip report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the NKBS RedChip report. Additional information on the securities mentioned in this report is available upon request. The NKBS RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the NKBS RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip Independent is an affiliate of Aurelius Consulting Group, Inc. Aurelius Consulting Group, Inc. owns 16,000 shares of NKBS stock.

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