NewMarket Technology (fka NWMT)

[augie]

NewMarket Technology, Inc. Appoints Chief Technology Officer for NewMarket Latin America in Strategy to Expand Latin American Operations to $30 Million in 2007
Monday January 22, 9:14 am ET


DALLAS--(BUSINESS WIRE)--NewMarket Technology, Inc. (OTCBB:NMKT - News) today announced the appointment of Mr. Paykar Chamani to Chief Technical Officer (CTO) for the Company's regional subsidiary, NewMarket Latin America. As the CTO of NewMarket Latin America, Mr. Chamani will be responsible for providing technical operating strategy and technical due diligence for any acquisitions or mergers, advising the operating companies on technical matters and serving as the principal officer for the development of new product categories and services. NewMarket's Latin America operations currently have offices in Brazil, Chile and Venezuela and expect to report over $20 million in profitable annual revenue for 2006.
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Mr. Chamani has served for the last three years as the CTO of Corsa Network Technologies, a company acquired by NewMarket Technology in 2005. Mr. Chamani studied Engineering in Paris at LT Dorian College, speaks four languages including Spanish and English, and is widely acknowledged for his skills and expertise in technology. Mr. Chamani has extensive experience with the security sector in France, as well as with NetVersant in the U.S., where he was responsible for IT operations across 40 locations with more than 2,000 employees.

Aubrey Brown, President of NewMarket Latin America, said, "Paykar has been very instrumental in the success we have enjoyed at Corsa Network Technologies and his proven technical abilities and knowledge of IT operations will enable us to quickly bring new products and services to market in Latin America. We expect to provide evidence of our new technical aggressiveness within months. I'm extremely pleased that Paykar has chosen to accept our offer to join us in growing our business in Latin America."

Public Listing of NewMarket Latin America Subsidiary

NewMarket Technology has signed a letter of intent (LOI) agreement to combine its Latin America operations into Paragon Financial Corp. (OTC:PGNF - News) with NewMarket becoming the majority shareholder in Paragon Financial. The corporate name will change to NewMarket Latin America. NewMarket's Latin America operations in Brazil, Chile and Venezuela currently have over $20 million in profitable annual revenue. A 50% increase in 2007 revenue to $30 million has been forecasted, including net income.

Additional NewMarket Subsidiary Listings

NewMarket's long-term business plan includes independently listing subsidiaries, while the parent company retains and maintains a majority interest. Due to the majority interest, NewMarket will continue to consolidate the subsidiary financials into NewMarket's financials. In addition, the subsidiary listings offer investors interested in a specific market sector or geographical region of operations the ability to invest in a focused investment, or "pure play." Initial terms of the majority interest in the subsidiaries include a NewMarket Technology owned preferred stock with "no dilution" provisions, offering an initial incentive to delay conversion of the preferred stock. Upon conversion of the preferred stock of each subsidiary, NewMarket will declare a shareholder of record date, dividend ratio and dividend distribution date for the subsidiary stock dividends to NewMarket shareholders.

In addition to the planned public listing of NewMarket's regional subsidiary, NewMarket Latin America, the Company had already completed the public listing of its Chinese subsidiary, NewMarket China (OTCBB:IICP - News). NewMarket's Chinese subsidiary expects to report over $20 million in revenue for 2006 and has forecasted a 100% increase in revenue in 2007 to $40 million.

Separately, NewMarket and Diamond I, Inc. (OTCBB:DMOI - News) have entered into a letter of intent agreement to consolidate Wi-Fi technology assets with $10 million in revenue forecasted in 2007. NewMarket will be the majority shareholder in Diamond and the companies will pursue Wi-Fi opportunities within multiple industries. With the addition of NewMarket's financial and marketing resources, one such opportunity exists with Diamond's proprietary encrypted hand-held gaming system targeted at the casino and gaming industry. Substantial revenue enhancement is offered to the gaming industry with wireless gaming. Wireless gaming does not require the gaming participants to be on the casino floor in order to gamble, yet provides the encryption and security necessary to abide by gaming regulations.

To facilitate the expansion, NewMarket recently announced an LOI agreement to acquire a majority interest in its affiliate Wi-Fi operation, RedMoon, Inc. RedMoon has designed, engineered and deployed mesh network solutions, providing high-speed Internet service, security surveillance, automatic meter reading and mobile broadband for municipalities.

In 2006, RedMoon and Chevron Energy Solutions, a Unit of Chevron Corporation (NYSE:CVX - News), signed a contract with the City of Burleson, Texas, to construct a wireless broadband network and implement an automatic water meter reading pilot project. http://www.chevronenergy.com/news_room/default.asp?pr=pr_20060329.asp

The cumulative 2007 forecasted revenue of the three subsidiary operations to be listed independently is $80 million. NewMarket intends to issue stock in the subsidiary operations to NewMarket shareholders in dividend distributions.

To be added to NewMarket's corporate e-mail list for shareholders and interested investors, please send an e-mail to [e-mail].

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 - News), Cisco Systems (Nasdaq:CSCO - News), SAP (NYSE:SAP - News), Siebel (Nasdaq: ORCL - News) and Sun Microsystems (Nasdaq:SUNW - News). 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.



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

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Source: NewMarket Technology, Inc.