NewMarket Technology (fka NWMT)

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NewMarket Technology, Inc Reports 55% Revenue Increase to $77.6 Million in 2006 with 38% Net Income Growth to $4 Million in SEC Form 10K Annual Report



Fourth Quarter Revenue Hits $24.5 Million with Record Quarterly Net Income of $1.7 Million


DALLAS--(BUSINESS WIRE)--NewMarket Technology, Inc. (OTCBB:NMKT) today announced filing SEC Form 10K to report on the Company's 2006 business operations and financial performance. The Company reported $77.6 million in revenue exceeding a $70 million forecast by 11% and increasing revenue by 55% over 2005. Net income increased 38% from $2.9 million in 2005 to $4.0 million in 2006.
Philip Verges, CEO of NewMarket Technology, Inc., said, "All financial indicators in the 2006 Annual report demonstrate substantial growth over 2005 as well as the maturing of NewMarket's overall operation. Significantly, our Fourth Quarter for 2006 was $24.5 Million -- a 60% increase over Fourth Quarter 2005. We look forward to growing profitably to $120 million in 2007 revenue."

Financial Report Highlights

Balance Sheet:

Cash position up 25% over last quarter ($3.3m v. $2.6m)
Stockholder's equity up 32% from year-end 2005 ($43.2 v. $32.8m)
Statement of Operations:

Revenue for 2006 up 55% from 2005 ($77.6m v. $50.1m)
Revenue for 4th quarter 2006 up 60% over 4th quarter 2005 ($24.5m v. $15.3m)
Gross profit for 2006 up 18% from 2005 ($21.9m v. $18.6m)
Operating expense percentage down, 22% of sales in 2006 v. 31% of sales in 2005
Net income (before currency translation) for 2006 up 38% from 2005 ($4.0m v. $2.9m)
Net income for 4th quarter 2006 up 18% over 4th quarter 2005 ($1.7m v. $1.5m)
Cash Flow:

Cash flow from operations for 2006 was up 97% from 2005 ($2.9m v $1.5m)
Beacon Equity Research to Update NewMarket Report with Fair Market Value of $0.78

In conjunction with the Annual Report, Beacon Equity Research is updating its independent analyst report rating NewMarket as an "Outperform" with a fair market value of $0.78. The report was issued during the fourth quarter of 2006 and did not take into consideration the recent independent listing of consolidated subsidiaries and the just released record 2006 financials. NewMarket anticipates an updated research report to be released by Beacon Research this week.

The BreakAway Investor "Buy" Recommendation on NewMarket Updated

The BreakAway Investor of the Taipan Financial Network issued a "Buy" recommendation on NewMarket Technology. The BreakAway Investor investment report on NewMarket Technology is accessible at www.taipanfinancialnews.com/red-hot-penny-stock-update-0407.html.

Webcast Scheduled for Wed, April 25th at 4:30 pm EDT

NewMarket Technology management will conduct a webcast on April 25 at 4:30 pm EDT. Further details on the call are available at http://www.vcall.com/IC/CEPage.asp?ID=116193.

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), 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. NewMarket ranked Number Five 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.