NewMarket Technology, Inc. On Track to Achieve $120 Million 2008 Revenue Forecast With $25 Million in New Sales Contracts and $43.7 Million in Revenue for the First Six Months

Thursday August 21, 9:40 am ET

CEO Releases Letter to Shareholders to Review Progress Toward $120 Million Revenue Forecast

DALLAS, TX--(MARKET WIRE)--Aug 21, 2008 -- NewMarket Technology, Inc. (OTC BB:NMKTE.OB - News) today released a letter to shareholders from CEO Philip M. Verges reviewing the Company's progress toward its $120 million revenue forecast for 2008. This week, the Company reported $43.7 million in revenue for the first six months of 2008 with a net income of $2 million. Separately, the Company recently announced record year-to-date sales contracts anticipated to contribute $25 million in revenue in 2008 (http://biz.yahoo.com/iw/080808/0423300.html).  The anticipated revenue for the majority of these sales contracts is scheduled to be recognized in the second six months of 2008.

The shareholder letter details management's plan to augment sales from its base of recurring customers that delivered $93.1 million in 2007 revenue with revenue from new sales contracts to achieve the $120 million 2008 revenue forecast. Assuming no increase or decrease in sales from the Company's base of recurring customers, the $25 million anticipated in revenue from new sales contracts puts NewMarket within reach of its $120 million revenue forecast. Additionally, the CEO's letter gives more detail on the Company's plan to reach the revenue forecast. The letter to shareholders is included in its entirety below.

Dear Fellow Shareholders:

Our recently released second quarter financials have raised some questions. The most notable of which is the assumed disconnect between our year-to-date sales and our forecast of $120 million in annual sales for 2008. Looking back through our past communications, I can see how some people may be scratching their heads.

NewMarket just had a very good quarter. The U.S. equity markets look horrible across the board, and yet NewMarket continues to grow profitably. Are we growing linearly? No, but we never have. Just like any other company, we have our ups and downs. In addition, we historically have a stronger second half of the year versus our first half of the year. In 2006, we achieved approximately 26% higher sales in the second half of the year versus the first half of the year. In 2007 we had about 32% higher sales in the second half of the year. It's the nature of our business.

Now, I will say that all companies, large and small, have their challenges. Sometimes things just don't work out the way you planned. You have to work with the information you have at hand, and make your best guess about the future. We have done just that. We know what our business has been in the past, we know what we have on our plates right now, and we are making an educated guess that our forecast of $120 million by the end of the year is doable. It is an aggressive goal but we believe it is doable. So what are we basing our forecast on? Well, I'll do my best to reiterate what we have communicated to date in a slightly different and hopefully more concise manner.

Last year, the Company reported $93.1 million in revenue. Like most companies, we win some and we lose some. While we maintain the majority of our customers, we do lose some. However, on a net basis, we have historically built upon our base of customers and sales, year after year. Since reorganizing in 2002, we have done nothing but grow our sales. Again, that growth hasn't been in a perfectly straight line, but the trend is unmistakably up. I expect our base of business to continue to grow. In addition, we have recently signed some new contracts that I consider to be a bonus of sorts. On August 8, we released in press our higher than anticipated sales for the year. These sales are certainly welcomed, but are not part of our traditional business growth. We expect these new sales to bring in approximately $25 million in new revenue by the end of the year. If you do some simple math, $93 million plus $25 million is about $118 million in sales, which is very close to our 2008 forecast of $120 million. While the majority of the revenue from these $25 million in contracts has not yet been realized, we expect this revenue to hit our books over the remainder of the year. We have already started to deliver on a small portion of these contracts.

Since we don't expect our traditional core business to be completely static, we expect last year's $93 million base in sales to change. In past years, it has changed to the upside, so we feel that our $120 million dollar sales forecast is very achievable.

NewMarket is still a young company, and our actual performance may be different than what we forecast, but we are working hard to achieve the goals we have set for the Company. I thank all of you for having faith in our vision and our efforts. I also hope you now have a better idea of how we have formulated our forecast and why we believe it can be achieved.

On Thursday, August 21st at 4:15 EDT, I will discuss the Company's $120 million revenue forecast in more detail in a Webcast. A link to the Webcast is available at the Company's corporate Website Investor Relations page at www.newmarkettechnology.com/investor-relations.htm  under "Current Events and Communications" or by going to. http://www.vcall.com/IC/CEPage.asp?ID=133305.  I will also discuss the Company's ongoing bottom line improvements.

While this letter has focused primarily on top line sales, we have also managed to work in some notable financial performance improvements. Most recently, the Company reported $2 million in net income through the first six months of 2008, a 71% increase over the net income for the same period last year. I hope you might have time to listen. Thank you for your ongoing interest in NewMarket Technology, Inc.

Best Regards,
Philip Vergers
Founder and CEO

Corporate E-mail Updates

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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.