N@N

NewMarket Technology, Inc.: NewMarket Technology, Inc. Designates Stock in Publicly Traded Chinese Operating Subsidiary to Be I

^{Published on 2009-03-20 07:26:18, Last Modified on 2009-11-03 18:54:14 - Market Wire}
 

DALLAS, TX--(Marketwire - March 20, 2009) - NewMarket Technology, Inc. (PINKSHEETS: [ NMKT ]) today announced designating stock in its publicly traded Chinese operating subsidiary to be issued in a dividend distribution. The Company currently owns a majority interest in its Chinese operating subsidiary through a preferred convertible stock position. NewMarket plans to exchange the current preferred convertible stock position it holds for two new classes of preferred stock. One of the two classes will be a non-convertible controlling interest. Consequently, the potential issuance of new common shares in the subsidiary company will be reduced accordingly. The second class of preferred stock will be designated for conversion into common stock to be used in a stock dividend distribution to NewMarket shareholders on a pro rata basis.

The Company's Chinese operating subsidiary filed a preliminary information statement on January 9, 2009 regarding a comprehensive recapitalization of the subsidiary company intended as part of a strategy to build investor confidence and boost share price. The Chinese operating subsidiary's management believes the current share price does not reflect its operational performance. The Chinese subsidiary company's trailing 12 months revenue as of September 2008 was approximately $42 million with a net income of about $900,000 and its annual revenue in 2007 was $40 million with a net income of $400 thousand.

The Chinese operating subsidiary company plans to promptly file a definitive information statement detailing its recapitalization plans to include the exchange of the existing preferred stock held by NewMarket for the two new classes of preferred stock highlighted in this release. Following the filing of the definitive information statement, the subsidiary company management team plans to release further information regarding its strategy to build investor confidence and boost share price.

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 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.

"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.