Replies to post #3894 on NewMarket Technology (fka NWMT)

[sbc357]

Thanks. Interesting information.
Now, I would like to see what the share price is set at in that PP, if it in fact is being considered as part of the deal.
THAT number will speak VOLUMES as to what the share price of NMKT should be when appropriately priced.

[my02cents]

Telephonics: Here's China Private Investment Info

You will find, in Exhibit A., the mentioning of the private investment group. In Exhibit B., you will see the whole structure of NewMarket China. NewMarket China (the Nevada Corp) is owned by NewMarket Technologies. The Private funding into NewMarket China is in anticipation of when the Nevada Corporation goes public as a seperate entity.

Private Bridge Loan from Exhibit A.:

"The $1 million investment has been made by a private investment group formed for the specific purpose of investing in NewMarket China. The $1 million is invested directly into NewMarket China as a bridge loan pending the independent public listing of the Company. This direct investment alleviates any need for NewMarket Technology to sell additional equity to financiers to advance the development of NewMarket China."

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Exhibit A.

NewMarket China Inc. Closes $1 Million Investment to Fund High-Tech Acquisitions in China and Eventual Public Listing in 2006; NewMarket China Has $24 Million Annual Revenue Run Rate Already Established.
Business Wire; 10/13/2005

DALLAS -- NewMarket China, Inc. (NMC) today announced closing a $1 million investment to fund high-tech acquisitions in China. NewMarket China is a Systems Innovation Company, an evolution of the technology incubator incorporated earlier this year by its parent company, NewMarket Technology, Inc. (OTCBB:NMKT). NewMarket China has been set up to parallel the NewMarket Technology business model established in 2002. NewMarket Technology has grown from $1 million in revenue in 2002 to a profitable $25 million in 2004 and currently has a $60 million profitable annual revenue run rate.

While the NewMarket business model develops emerging technologies similar to an incubator, NewMarket also runs a traditional systems integration business as a certified reseller and integrator of blue chip technology solutions such as Microsoft (Nasdaq:MSFT), Sun Microsystems (Nasdaq:SUNW) and Cisco Systems (Nasdaq:CSCO). NewMarket's business model differentiates from its incubator predecessors by using a business foundation with current revenue and income while at the same time developing the emerging technologies in the company's technology portfolio. By complementarily packaging its in-house emerging technologies with brand name incumbent technology solutions, NewMarket Technology can offer systems integration and emerging technologies as a total solution.

NewMarket China has already established $24 million in annual systems integration contracts in China since its formation earlier this year. In 2006, NewMarket China will be publicly listed independent of NewMarket Technology Inc. After NewMarket China's independent public listing, the Company will remain majority-owned by NewMarket Technology Inc., thereby permitting NewMarket Technology to consolidate the financials of NewMarket China with the parent company. NewMarket Technology plans to issue to its shareholders stock in NewMarket China subsequent to NewMarket China's independent public listing.

The $1 million investment has been made by a private investment group formed for the specific purpose of investing in NewMarket China. The $1 million is invested directly into NewMarket China as a bridge loan pending the independent public listing of the Company. This direct investment alleviates any need for NewMarket Technology to sell additional equity to financiers to advance the development of NewMarket China.

"The rapidly expanding Chinese economy is dominated by start-ups and small business," said Dr. James Jiang, President of NewMarket China. "Ninety-nine percent of all businesses in China would qualify as small businesses by the United States Small Business Administration standards. Yet with all the economic growth in China fueled largely by small business, little to no equity investment market exists domestically in China for funding small businesses. We believe NewMarket China's plans to list publicly on a United States Micro-Cap exchange to facilitate equity investment in China will not only result in rapid growth for the NewMarket China, but set a new investing trend in China itself."

An overview of NewMarket China is available by contacting LCGroup at [e-mail] or 404-261-1196.

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Exhibit B.

Letter to Shareholders
Date: 1/25/2005

NewMarket Technology to announce the execution of the definitive agreement to acquire Gaozhi Communications.
Dear Fellow Shareholders -

NewMarket Technology is pleased to announce the execution of the definitive agreement to acquire Gaozhi Communications of Shanghai, China. The agreement was executed by NewMarket Technology and the Shareholders of Gaozhi Communications on Friday, January 15, 2005. This acquisition is the first step in an overall strategy to extend the NewMarket business model into China.

The agreement is currently under a routine review by Chinese authorities and will be released promptly in an amended SEC Form 8K disclosure once the review is complete. The purpose of this correspondence is to inform shareholders in an SEC Form 8K disclosure of the transaction in the review interim period pending the release of the definitive agreement.

Gaozhi Communications Acquisition Structure

NewMarket Technology has established a subsidiary company under which to concentrate all efforts associated with our strategy in China. The subsidiary is a Nevada Corporation named NewMarket Technology China. In accordance with the definitive agreement executed on Friday the 15th of January, NewMarket Technology China owns 90 percent of the stock of Gaozhi Communications. Accordingly, NewMarket Technology owns 51 percent of the stock of NewMarket China and the shareholders of Gaozhi own 40 percent of the stock of NewMarket China. The remaining 9 percent is owned by a third party which has assisted in negotiating and funding the transaction. In a separate transaction, NewMarket China has directly received $300,000 in debt financing in conjunction with the execution of the definitive acquisition agreement on Friday the 15th of January.

Gaozhi Communications Outlook

Gaozhi Communications has been the subsidiary of Gaozhi Science and Technology. Gaozhi Science and Technology is a prominent communications technology organization in Shanghai, China with over U.S. $30 million in annual sales. Gaozhi Communications was initially formed in partnership with a business partner in Singapore for the purposes of developing advanced networking hardware. Until now, Gaozhi Communications has been reporting as a research and development organization. In conjunction with the acquisition agreement, Gaozhi Communications is launching their first sales initiatives. Management has secured the first contracts and as part of the acquisition agreement, the shareholders of Gaozhi Communications have assured a minimum of $3 million in revenue in the first year of operations.

NewMarket Technology China Strategy

The acquisition of Gaozhi Communications is the first step in an overall strategy to extend the NewMarket business model into China. The purpose of the NewMarket business model is to provide early capital formation to fund the rapid growth of emerging technology companies and to accelerate early sales by introducing the products and services of an early technology company into an existing complementary customer base with an established sales force. Shareholders are benefited in this business model by receiving equity dividends in each of the acquired companies when the acquired companies are eventually spun-off into stand-alone independently publicly listed companies. In 2005, NewMarket Technology plans to independently register the shares of NewMarket China and execute on additional acquisitions in China with a longer-term plan to subsequently spin-off those acquisitions into additional independently publicly listed companies.

As part of NewMarket Technology's business development efforts in China, we have now hosted two Trade Mission trips to China for interested investors and business partners. We intend to continue regular Trade Missions. All shareholders and interested investors are welcome and encouraged to participate in these Trade Missions (at their own expense) to learn more about the NewMarket strategy in China. The next Trade Mission will be conducted in May. If interested please contact Jessica Burnett at 972-386-3372 ext. 3063 or at [e-mail].

Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc.