NewMarket Technology, Inc. Releases Letter to Shareholders Discussing Record Sales Growth in 2008

Monday July 14, 11:28 am ET

DALLAS, TX--(MARKET WIRE)--Jul 14, 2008 -- NewMarket Technology, Inc. (OTC BB:NMKT.OB - News) today released a Letter to Shareholders from CEO Philip M. Verges. The letter is included in its entirety below.

Dear Fellow Shareholders:

Friday's stock market performance is yet another blow to all of our shared concerns regarding the U.S. economy. The Dow Jones Industrial Average dipped below both the technical and psychological level of 11,000, a number we haven't seen since July of 2006. The Nation's key home mortgage lenders Fannie Mae and Freddie Mac are in essence being bailed out by the Federal Government, having been given direct access to the discount window at the Federal Reserve. We also saw the failure of California's IndyMac, the largest retail bank to go under amid the mortgage crisis. Based upon Morningstar's database of public companies, approximately 55% of all public companies, regardless of the stock market they trade on, are sitting within 25% of their 52 week lows. However, like many small and medium sized businesses, NewMarket's sales are growing. In fact, NewMarket is having its best sales year ever.

Small and medium business historically outperforms big business in down economies. Little narrative analysis is available as to why small and medium business fair well in down economies. Nevertheless, readily available data shows the performance of small and medium sized business exceeding the performance of big business in down economies.

It is my speculation that in some ways, a weak economy levels the playing field between big and small companies. In a growing economy, big business has an advantage over small business when it comes to accessing commercial and investment banking capital. In a weak economy, commercial and investment banking capital becomes a bit harder to get. This scarcity of capital has a greater impact on big business, because their size does not allow them to adapt quickly and change amidst the weakening economy. They need to make increasing use of commercial capital at a time when it is becoming scarce. They need it to support their bulky operations that are too big to change in a timely manner. On the flip side, small and medium sized businesses are quite accustomed to scarce capital. They deal with that issue in good times and in bad. This fact of life is built into their daily operations. This gives them the advantage of experience when access to capital becomes limited for all companies.

Some shareholders take exception at my use of the word "small" or "medium" when I refer to NewMarket. The Company has reached approximately $100 million in annual sales, and some have difficulty regarding such a sales figure within a "small" or "medium" context. Let me first say that there is, in fact, no single textbook definition of a small company. U.S. Government standards define small businesses based upon a mixture of statistics including a company's industry, revenue, and number of employees, just to name a few. Point being is that there isn't a simple "apples to apples" comparison that defines a small business. If you look globally, definitions of small business become even more muddled.

Let me explain how "small" applies to NewMarket. In U.S. economic terms, the label of "small" in regard to the size of a business generally refers to organizations with less than 500 employees. While NewMarket has over 500 employees globally (less than 1000 in total), we have less than 100 employees in North America. Most of our North American employees are engaged in the delivery of goods and services to North American clients. Only a few of our North American employees are involved in the management and oversight of NewMarket's foreign operations. We are very much a small business in the U.S. and due to our efforts to balance our international streams of revenue, the majority of our record sales growth in 2008 is coming from our operations in the U.S.

Over half of the U.S. employment comes from small business, as does half of the U.S. GDP. I assure you, NewMarket is not the only small or medium business realizing better than usual sales growth in 2008. Indeed, I believe small and medium sized businesses will carry the U.S. economy through the current economic down turn. They will do this by being quick to adapt and by being accustomed to the scarcity of capital. They will absorb the jobs lost through big business layoffs by creating new jobs that are suitable to the current economic environment. Beyond simply carrying the economy through this downturn, I believe it will be small and medium businesses that lead the U.S. economy back to health.

We are excited about our growth in 2008 and look forward to reporting our second quarter results. We appreciate shareholder emails and calls to the company and encourage all shareholders with questions to contact us at 214-722-3065 or ir@newmarkettechnology.com. 

Thank you for your continued investment and support.

Philip M. Verges
CEO and Founder
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 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 integration and maintenance services to support the prevailing industry standard solutions such as Microsoft, 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. In 2006, the company continued its rapid growth, reporting $77.6 million in revenue with a net income of $5.8 million.

"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.