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PGNF-NMKT News:NewMarket Technology, Inc. Announces Dividend in Conjunction with Letter of Intent to Acquire Majority Interest in Silicon Aquarius, Inc. a Telecom Firm with 23 Patents
Business Wire - December 11, 2006 14:35
CEO Summarizes Town Hall Highlights to Include Silicon Aquarius Dividend Details and $120 Million 2007 Revenue Forecast with Possibility of Surprise Increases from $200 Million M&A Pipeline


DALLAS, Dec 11, 2006 (BUSINESS WIRE) -- NewMarket Technology, Inc. (OTCBB:NMKT) today released a letter to shareholders from CEO Philip Verges providing a summary of highlights from the recent Company Town Hall Meeting held in New Orleans. The meeting provided those that attended with a detailed overview of the Company's unique operational and capital structure strategies. In conjunction with the maturing operational and capital structure strategies, the expansion of the current technology portfolio to include the acquisition of 23 patents was announced. The issue of a shareholder dividend to distribute an interest in the value of the 23 patents and the overall future of NewMarket's expanding technology portfolio was also announced.

The shareholder letter from CEO Philip Verges released today and included in its entirety below provides additional detail on the acquisition of the 23 patents and the corresponding shareholder dividend. The letter also outlines NewMarket's 2007 $120 million revenue forecast from anticipated organic sales expansion and the possibility of subsequent revenue revision increases that may result throughout 2007 in the course of the Company continuing to acquire new companies. The companies in NewMarket's existing M&A pipeline have combined revenue exceeding $200 million in annual revenues.

Dear Fellow Shareholders and Interested Investors:

The Town Hall Meeting last Thursday afternoon in New Orleans was enthusiastically received by those that attended. The meeting was recorded and will be available on the Company website later this week. The meeting lasted over two hours. I recognize not everyone will have two hours to dedicate to reviewing the meeting video. Accordingly, I have provided here a summary of the meeting highlights. This letter in combination with a copy of the PowerPoint (available by contacting [e-mail]) from the meeting will help those without two hours of available time to at least be familiar with the meeting highlights.

Overview of Unique Operational and Capital Structure Strategy

In 2002, NewMarket launched a new business model to continuously introduce new technologies to market. The business model has been difficult for the market to understand because there is no one identical existing company to which to compare NewMarket's business model. The Company has now matured to a point where the various key aspects of the business model have demonstrated sufficient operating history to be more apparent.

There are two key aspects of the NewMarket business model - the operational strategy and the capital market strategy. Operationally, NewMarket combines the sale and support of recognized and accepted brand name technology solutions with the sale and support of yet to be recognized emerging technology solutions that have higher profit margin opportunity. The combination of selling and supporting both accepted and yet to be recognized technology solutions provides sustainable operating efficiencies for the new technologies and the opportunity to recognize greater profits by selling new technologies to existing customers. When selling a new technology, NewMarket already has the customer's confidence from its reputation and business experience with market accepted technology solutions.

By maintaining each emerging technology in the overall portfolio of emerging technologies in its own subsidiary company, NewMarket optimizes the opportunity to realize maximum value from each emerging technology, as well as mitigating the risk to the overall company associated with the investment in each emerging technology. As a technology matures, NewMarket will list publicly the associated subsidiary while maintaining it as a consolidated subsidiary for financial reporting purposes. This provides the opportunity to realize incremental returns on investments to date through the periodic sale of equity in the now independently listed consolidated subsidiary. This also provides the opportunity to directly benefit shareholders through the issuance of stock in the independently listed consolidated subsidiary through a NewMarket shareholder dividend.

Below is the model of the capital structure NewMarket is moving toward in the independent listing of consolidated subsidiaries.

NewMarket Technology, Inc.
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NewMarket China NewMarket Infotel Redmoon Xiptel NMKT
Latin America S.E. Asia NMKT BB NMKT VoIP IP


Each of the six subsidiary companies are planned to be listed by the end of 2007. NewMarket's consolidated operation in China, NewMarket China, Inc., is currently listed as Intercell International Corporation (OTCBB:IICP). NewMarket Latin America is currently in a letter of intent (LOI) agreement with Paragon Financial Corporation (OTC:PGNF) to list its Latin American operation with over $20 million in annual profitable revenue. NewMarket BroadBand featuring NewMarket Technology's affiliate ownership in Redmoon Broadband is also in a letter of intent agreement with Diamond I, Inc. (OTCBB:DMOIE) to affect a public listing of NewMarket's broadband assets.

Technology Portfolio Expansion through Acquisition of 23 Patents

At the Town Hall meeting, a letter of intent agreement was announced to acquire a majority interest in Silicon Aquarius, Inc., a telecommunications technology firm with 23 patents (Silicon Aquarius, Inc. Patents). Please note that no NewMarket stock is being used for this acquisition of Silicon Aquarius. The 23 patents will substantially increase NewMarket's overall portfolio of emerging technologies. NewMarket now has a substantial pipeline of new technologies through a single acquisition. Those technologies will be organized into a subsidiary company dedicated to developing the majority of NewMarket's future emerging technologies. NewMarket has concentrated primarily on the marketing of emerging technologies, but with the addition of Silicon Aquarius, the Company will now begin to extend its reach into the development of emerging technologies with clear intellectual property differentiation.

Corresponding Shareholder Dividend and Overall Dividend Schedule

With the expansion of NewMarket's technology portfolio through the acquisition of Silicon Aquarius and the extension of the Company's reach into the ongoing development of new technologies, NewMarket will share the future of the potential value to come from this business expansion with all current shareholders. In conjunction with the closing of the purchase of Silicon Aquarius, NewMarket will issue a shareholder dividend to distribute up to 20% ownership in the new subsidiary to NewMarket shareholders. In addition to the LOI with Silicon Aquarius, NewMarket has also entered into an LOI to acquire a registered public company. NewMarket intends to reorganize Silicon into the public company. The dividend issued to NewMarket shareholders will be stock in the reorganized public company. The current intention is to issue one share of stock in the reorganized public company for every one share of NewMarket stock.

Neither the acquisition of Aquarius nor the corresponding acquisition of the registered public company are final as of yet. Shareholders can request a PowerPoint presentation on Silicon Aquarius and the NewMarket plan to expand its technology portfolio to include the issue of its first dividend by contacting [e-mail]. NewMarket management is confident the acquisition will close as planned, but is required to emphasize that the acquisition is nonetheless not closed at this time and may not close.

In first quarter of 2007 NewMarket will issue a schedule of dividends to be issued in all NewMarket listed consolidated subsidiaries. The schedule is intended to be released after the Paragon Financial and Diamond I transactions are completed with NewMarket Latin America and NewMarket BroadBand.

$120 Million Revenue Forecast and $200 Million M&A Pipeline

At the Town Hall meeting the previously released revenue forecast for a profitable $120 million in 2007 revenue was reviewed in detail. A substantial portion of the organic revenue increase will come from the previously announced contract expansion of NewMarket's current systems integration operation in China. NewMarket will realize over $20 million in systems integration revenue from China in 2006. However, NewMarket recently entered into an agreement that will result in the systems integration business in China increasing by approximately 100% to an anticipated revenue amount of $40 million in 2007. The balance of the increase is conservatively estimated to come primarily from the expansion of existing systems integration contracts throughout NewMarket's overall existing customer base.

The current forecast to $120 million in revenue does not include any potential impact from additional acquisitions. However, NewMarket has an acquisition pipeline that includes companies with a combined revenue of over $200 million. Accordingly, NewMarket anticipates periodically issuing surprise revisions increasing the Company's 2007 revenue forecast in conjunction with the anticipated advance of its acquisition strategy.

Management continues to believe that the market has not yet recognized the value of NewMarket's current business operations or its future potential. We believe the continuing execution of the business plan is the best way to enhance shareholder value as the market begins to value the company on its revenue and income growth. We plan to particularly concentrate on the continued listing of existing consolidated subsidiaries and the corresponding issue of shareholder dividends. We look forward to completing the Silicon Aquarius transaction and rapidly issuing this first dividend.

Thank you,

Philip Verges

CEO and Chairman

NewMarket Technology, Inc

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 to include Microsoft (Nasdaq:MSFT), Cisco Systems (Nasdaq:CSCO), SAP (NYSE:SAP), Siebel (Nasdaq:ORCL) and Sun Microsystems (Nasdaq:SUNW). Concurrently, NewMarket continuously seeks to acquire undiscovered 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 global network of Solution Integration subsidiaries in North America, Latin America, China and Singapore. NewMarket maximizes shareholder return on investment by independent listing of consolidated regional and emerging technology subsidiaries in order to issue subsidiary stock in shareholder dividends.

"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.

SOURCE: NewMarket Technology, Inc.

NewMarket Technology, Inc.
Rick Lutz, Investor Relations, 404-261-1196
[e-mail]
www.newmarkettechnology.com

Copyright Business Wire 2006