COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
NewMarket Technology, Inc. Releases Update on Subsidiary Public Listings, Dividends, Recent Outperform Rating and $0.88 PPS Target vs. Current $0.33 PPS
Company Releases Letter to Shareholders Highlighting Continued Progress to Independently List Subsidiary Operations and Issue Dividends
DALLAS, Jun 07, 2007 (BUSINESS WIRE) -- NewMarket Technology, Inc. (OTCBB: NMKT) CEO Philip Verges today released a letter to shareholders discussing the recent progress that has been made regarding NewMarket's independent subsidiaries and the issuance of shareholder dividends. The CEO also comments on the recent Beacon Research Analyst Report Update rating NewMarket as an "Outperform" with an increase in target price per share of $0.88 compared to the current price per share of $0.33.
Dear Fellow Shareholders:
NewMarket continues to grow dramatically and with that growth the Company is changing rapidly. Growth is always exciting and corresponding changes come with the territory. The changes are in part driving the growth and in part being driven by the growth. Either way, while changes are inevitable, and even though growth is exciting, any change can be cause for anxiety as necessary changes are implemented.
This letter is to address some of those changes and mitigate unnecessary anxiety. Shareholders can anticipate additional communications from the company to be forthcoming regarding various initiatives and progress.
On May 24, CFO Phil Rauch and I conducted a Webcast to discuss the Company's amended annual filing and first quarter results. I would like to thank everyone who watched the Webcast and for the positive feedback we received from many of you. During the call, I asked that you allow NewMarket management 7-10 business days to address NewMarket's progress regarding the status of our subsidiaries and the issuance of shareholder dividends. In this letter we will address the nearest term subsidiary and dividend activities with more information on additional subsidiary and dividend activity to follow in subsequent communications.
Status of NewMarket IP Subsidiary
As many of you know, NewMarket has started to move into earlier "concept-stage" technologies. NewMarket IP will be dedicated to acquiring and developing earlier stage concept technologies. We are currently seeking patented or patent-worthy, concept-stage technologies ready for development, but not yet ready for market deployment. In fact, we have over 20 patents in the acquisition pipeline.
NewMarket Technology recently announced signing a letter of intent agreement to acquire GreenThread, LLC, a development-stage company with patent-pending flash memory technology. The letter of intent with GreenThread is the second agreement signed by NewMarket with inventor and engineer G. R. Mohan Rao. Mr. Rao and his assembled technical team collectively have over 50 years of DRAM, SRAM, EPROM and Flash EPROM design experience, holding over 100 patents. GreenThread's CEO recently joined us on a high-tech investment trade mission to China to develop a plan of action regarding future plans between NewMarket and GreenThread.
NewMarket will directly share the return on investment potential of the earlier stage emerging technology IP with NewMarket Technology shareholders by distributing 20% of the new subsidiary to NewMarket Technology shareholders. The planned dividend distribution will be a one for one issue - issued concurrently with the completion of a reverse merger to publicly list NewMarket IP.
NewMarket and GreenThread have agreed on terms for the NewMarket acquisition of GreenThread. NewMarket has agreed to terms for the acquisition of a public entity to effect the independent public listing of GreenThread. We are finalizing the details of a plan to issue a dividend in the public entity to NewMarket shareholders. Those details include mitigating the tax impact to NewMarket shareholders resulting from a dividend issue and the registration of dividend shares. We are currently waiting on an independent valuation of the GreenThread operation in order to finalize the details on taxes and registering dividend shares.
Moving NewMarket Latin America Off the OTC
NewMarket recently completed the independent listing of its Latin American operations (OTCBB: NLAI). NewMarket's Latin American operations have experienced rapid growth and have set revenue goals of $30 million for 2007. NewMarket is currently in the process of moving NewMarket Latin America, Inc. off of the OTC to the OTCBB.
NewMarket anticipates releasing un-audited financial results for NewMarket Latin America for the second quarter of 2007 and releasing financial results in the third quarter that will include the 2006 annual results necessary to bring NewMarket Latin America compliant with the requirements to be listed on the OTCBB. Accordingly, we will immediately execute on the procedures to list NewMarket Latin America on the OTCBB after we file the required reports.
DMOI Name and Ticker Change and Dividend Schedule
As many of you know, NewMarket has executed an agreement to purchase a majority interest in Diamond I, Inc. (OTCBB: DMOI) with the intention of subsequently consolidating all NewMarket's broadband offerings into Diamond I. All the terms of the agreement were forecasted to be finalized on or about June 1, 2007. Notably, the terms included a dividend distribution of stock in a gaming subsidiary of Diamond to the shareholders of Diamond. The record date for the distribution is intended to be set in conjunction with the finalization of all terms in the purchase agreement.
The remaining issue to be finalized in order to "close" the purchase agreement involves reaching mutual agreeable terms of the NewMarket investment into Diamond I. The negotiations to reach mutually agreeable terms have been more difficult than expected, however, we remain optimistic that terms will be reached. We do not consider last minute negotiation conflicts to be unusual in many merger and acquisition transactions.
In the event that final investment terms can not be reached, NewMarket does have an alternative strategy to list its broadband assets publicly within a reasonable time frame to still be completed by the end of 2007. Again, we see no reason why final terms will not be reached, but we believe a backup plan is prudent for the timely listing of NewMarket's broadband assets. NewMarket is bringing all cash and revenue to the transaction and the only assets validated by customer contracts. We are optimistic about the potential value of Diamond's gaming assets and we acknowledge the convenience of the immediate public listing enabled by the current Diamond listing. However, we maintain a backup plan because we see no reason to mitigate the value of NewMarket's broadband assets or discount the value of NewMarket's investment in order to accelerate a public listing or to participate in the yet unproven potential of Diamond's gaming assets.
Upon reaching a mutual agreement on the investment terms, the purchase agreement will be "closed" and the record date for Diamond shareholders to be eligible to receive a dividend distribution of stock in a gaming subsidiary will be declared. The shareholder of record date will be the agreement closing date.
Beacon Equity Research Outperform Rating and $0.88 PPS Target
We are pleased to receive an "outperform" rating and increased target share price recommendation from Beacon Equity Research in light of shareholders recent frustrations.
We recognize that multiple alterations to plans, even though objectives remain the same and on target, can nevertheless be frustrating for shareholders. These adjustments are made worse by delays, regardless of whether or not the delay impacted the value of the business. The frustrations have certainly been reflected in the share price, which can only add to further frustrations.
The NewMarket share price is currently being impacted by market dynamics independent of the value of the Company. At the same time our recent alterations and delays have also impacted share price independent of the Company's value. The Beacon Equity Research Report is a timely validation of the potential for the Company's share price to increase even if market dynamics and possible future alterations and delays temporarily hamper the share price from aligning with the Company's fundamental financial value.
Thank you,
Philip Verges
CEO and Chairman
NewMarket Technology, Inc.
To be added to NewMarket's corporate e-mail list for shareholders and interested investors, please send an e-mail to ir@newmarkettechnology.com.
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, Cisco Systems, SAP, Siebel and Sun Microsystems. 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.
"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.
CONTACT: NewMarket Technology, Inc.
Rick Lutz, Investor Relations, 404-261-1196
ir@newmarkettechnology.com
www.newmarkettechnology.com
Copyright Business Wire 2007
