NewMarket Technology, Inc. Updates Ongoing Progress With Growth Initiatives and Sustained Forecasts in Face of Current Economic Environment

Beacon Equity Research Rates NMKT 'Speculative Buy,' With $0.54 Target Price


DALLAS, TX--(MARKET WIRE)--Oct 21, 2008 -- NewMarket Technology, Inc. (Other OTC:NMKTE.PK - News) released a letter to shareholders today from the CEO Philip Verges to provide an update on management's considerations in reaction to the prevailing economic conditions. On Friday, October 17, 2008, Beacon Equity Research released an analyst report recommending the Company's stock as a 'Speculative Buy' at $0.54. While the recommendation has been made based on the Company's fundamental performance, the prevailing market environment remains difficult. Management addresses the Company's unchanged growth objectives and continued progress. The letter is included in its entirety below. The Beacon Equity Research report is available at:
http://www.beaconequity.com/main/Covered-Companies/New-Market-Technology-Inc/%28showAs%29/short

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Dear Fellow Shareholders -

"Only Thing We Have to Fear Is Fear Itself": FDR's First Inaugural Address

Franklin D. Roosevelt was elected president in 1932 at the depth of the Great Depression. In his inaugural address, which was dedicated to economic reform he famously said, "the only thing we have to fear is fear itself." The theme of his address, in addition to outlining his plan for economic reform, was to remind Americans that the nation's "common difficulties" concerned "only material things."

Former Federal Reserve Chairman Alan Greenspan has long argued that economic models don't adequately capture the way the economy behaves. Mr. Greenspan frequently proclaims that human nature, which is prone to euphoria and fear, is likely the principle economic driver, and that unfortunately fear and euphoria measures can't be captured by economic models. In short, if consumers are confident in the economy, they buy and if they are fearful, they don't buy. They don't buy luxuries such as new cars and new couches for the living room or vacations. And fearful of where the market may go in the future, they don't invest in new stock purchases.

Managing Fear and Euphoria

Instead of inspiring courage and dismissing fear as beneath American dignity as President Roosevelt endeavored to do, today's federal government is attempting to merely calm fears with stabilizing investments in the financial industry. America's CEOs are largely following suit, attempting to stabilize fears with confident communications to shareholders. The magnitude of the bank failures and the record size of the bailout investments makes the task of calming fears a rather difficult undertaking.

NewMarket Business as Usual with a Vigilant Attitude

Today at NewMarket, it is business as usual. The economic crisis has not changed our objectives. Business as usual for NewMarket is ongoing aggressive growth. Yes, our share price is much lower than we would all like to see it. Yes, I believe the prevailing economic environment is having an impact on our share price. The current crisis in our national equity and debt markets has affected everyone from Main Street to Wall Street. However, we feel this can also bring great opportunities for a company like NewMarket. Our markets are full of good companies that have seen their share prices disconnect from their fundamental performance. Private company valuations have been similarly discounted through their comparison to public firms. Many good companies around the world are effectively on sale. NewMarket is in the business of seeking out and acquiring good companies with new technologies. This could be one of the best opportunities in our Company's history.

Beacon Equity Research $0.54 Speculative Buy Target Price

Not unlike many companies today, the fundamental operational performance of NewMarket is not reflected in the share price. The current market share price is well below the book value share price. Any explanation of the current share price could only be speculative. Regardless of the explanation, the current share price is an opportunity. Beacon Equity Research has recommended a speculative buy target price of $0.54. In today's market, that seems optimistic, but I believe the message investors should hear is that NewMarket is undervalued at its current price. I remain confident that NewMarket will in the future realize an alignment of the market share price and the underlying fundamental value of the operation.

Prudent Preparations

We are taking reasonable measures to prudently prepare for the possibility of current economic conditions having a residual effect on NewMarket operations. Our objectives will remain unchanged, but our plan of execution may have to be adapted in the face of the economic crisis. While we are taking prudent preparations against predictable operational impacts from the current economic crisis, the possibility of unpredictable impacts are our greatest risk. The only defense against the unpredictable is intestinal fortitude and strength of character. When I was at West Point, we use to play a game called "What Now Cadet?" Instructors would give us historical accounts of overwhelming combat situations without telling us how the situation ultimately turned out. Instead, the instructor would ask how we would handle the scenario. After we did our best to formulate a response, the instructor would finish the story. Each historical account was an incredible success story in the face of overwhelming odds -- squad sized units that defeated division sized enemies, prisoners of war that escaped from armed captors. And the common theme of each story was "guts" or intestinal fortitude and strength of character -- the courage to face the seemingly impossible and the confidence to believe nothing is impossible.

Founder-Managers

In light of the fact that 60% of all startups fail within three years, every entrepreneur that launches a new business demonstrates a high degree of intestinal fortitude and strength of character. To all of you reading that have faced life or death situations, please do not think I am comparing entrepreneurial courage to life or death courage. I am simply illustrating a point. I am recommending that as each of you consider the viability of your investment portfolio (not just NewMarket) within the uncertainty of the prevailing economic environment, that the key factor to consider is the intestinal fortitude and strength of character of the management team associated with each investment. I would look to founder-managers for the greatest strength. I would recommend management teams such as the management team that I have the privilege of working with here at NewMarket. After 11 years of operation, we remain founder-managed today with a verifiable record of overcoming the unpredictable. We are ready for the immediate future in a tumultuous economy.

FDR's Opening Statement in His Inaugural Address

Let me close by sharing more of President Roosevelt's opening statement in his 1933 inaugural address:

"This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory."

NewMarket is a growth company and NewMarket's leadership intends to aggressively advance the Company's ongoing expansion. We are taking prudent measures against the economic crisis, but we do not plan to fall back from our growth objectives. We have a number of previously announced initiatives to acquire new operations and move our listing to an upgraded exchange among other growth initiatives. All plans are still on and we are planning future announcements in conjunction with our ongoing progress and next steps toward expanding the NewMarket vision and operation.

Thank you for your time and consideration and most of all for your ongoing support.

Best Regards,

Philip Verges

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.