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Newtek Business Services, Inc. Earns $0.11 per Share for the Second Quarter
Wednesday August 10, 3:06 pm ET
Lending, Electronic Payments, Web Hosting Are Profitable


NEW YORK, Aug. 10 /PRNewswire-FirstCall/ -- Newtek Business Services, Inc. (Nasdaq: NKBS - News) http://www.newtekbusinessservices.com, a direct distributor of financial and business products to the small to medium-sized business market, today announced its second quarter earnings of $0.11 per share on a fully diluted basis on revenues of $26.23 million. Wall Street analyst estimates averaged $0.10 per share for the quarter.
Barry Sloane, Chairman and CEO of Newtek Business Services, Inc., said: "We are proud of our quarterly results and particularly satisfied with our three primary business lines reporting profits simultaneously for the first time in our history. Our lending, merchant processing and web hosting segments recorded pretax net income of $587,998, $1,149,945 and $918,399 for the second quarter in each segment. We have updated and revised our forecasts for pretax profits for 2005 on the following business segments: our web hosting business is anticipated to record $3.9 million in pretax net income in 2005; our merchant processing business is anticipated to record pretax net income of $2.4 million in 2005; and our lending business is anticipated to record pre-tax net income of $2.4 million in 2005. We anticipate that we will record $96 million in revenues for 2005 with EPS of $0.30."

Mr. Sloane continued: "Our small business lender is expected to close on its $75 million three-year GE Commercial Financial Services revolving line of credit by the end of August and believes that this will enable it to grow its loan production with the knowledge that it has consistent funding at attractive advanced rates. We are excited about our lender being able to concentrate on its core business now that its financing needs are taken care of. I am confident that we can now resume the high growth rate that we initially had in this business at its inception. We also have several attractive client transactions involving our product lines with major strategic alliance partners."

Newtek Business Services, Inc. will be conducting a conference call today at 4:15 pm EDT to discuss the company's results for the first quarter 2005. The conference call will be accessible via a toll free number by dialing 866- 203-3206 and providing the pass code 78539721. Listeners are encouraged to ask any questions that they may have during the call.

There will also be a PowerPoint presentation to accompany the conference call which can be downloaded from Newtek Business Services' homepage at http://www.newtekbusinessservices.com. The conference call will also be broadcasted over the Internet through Newtek's website. To listen to the webcast live, please go to Newtek's website approximately 15 minutes prior to the call to download any audio software which may be necessary. For those who miss the live broadcast, a replay will be available on the website approximately one hour after the call.

About Newtek Business Services, Inc.

Newtek Business Services, Inc. is a direct distributor to the small to medium-sized business market. According to the SBA, there are over 23 million small businesses in the United States which in total represent 99.7% of all employers, generate 60 - 80 percent of all new jobs annually and generate more than 50% of non-farm GDP. Since 1999, Newtek has helped these business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses. Newtek focuses on providing its 45,000 customers with access to financial, management and technological resources that enable them to better grow and compete in today's marketplace. Newtek's products and services include: