NewMarket Technology, Inc. Takes Additional Time to Account for Exceptional Economic Conditions in 2008 Audited Financial Statements Anticipated to Report Record Revenue Results

In a Webcast Scheduled Tuesday, April 21st, the Company Will Outline a Tough and Decisive Plan to Sustain Sales Growth and Profit in Historic Economic Downturn

DALLAS, TX--(Marketwire - April 15, 2009) - NewMarket Technology, Inc. (PINKSHEETS: NMKT) today announced that the Company will take additional time to finalize the Company's fiscal year 2008 annual report to be filed on Form 10-K. Management continues to indicate that the report will reflect record revenue results, exceeding the Company's $93.1 million in profitable revenue reported in 2007. Philip J. Rauch, CFO, has released a letter to shareholders to address the exceptional economic conditions the Company is taking extra time to reflect on within the 2008 audited financial statements.

The entire letter is included within this press release. Additionally, the Company will conduct a Webcast on Tuesday, April 21st, to outline its plan to sustain growth and profit through the prevailing economic downturn.

Dear Fellow Shareholders:

The market conditions causing a market wide decline in share prices have had a substantial impact on NewMarket's fiscal year 2008 financial statements. This impact is not unique to NewMarket. Every company has to carefully scrutinize the current value of its assets based on the prevailing economic conditions. This revaluation of assets is the matter I have decided to take time to address before filing our 2008 annual report.

How Market Conditions Impact the Financial Statement

If a homeowner were to attempt to sell their house today, that homeowner would likely find it challenging to receive a sale price as high as one that might have been obtained in recent years. Selling a house in the current market would likely result in a substantially lower price for the homeowner. Similarly, NewMarket has acquired a number of assets over the previous six years and it would be similarly challenging for the company to realize a sale price equal to our purchase price if we were to attempt to sell those assets in the prevailing market. Regardless of our intention to sell any assets, we nevertheless have to account for the loss in value of those assets due to the current market conditions. The accounting for that reduction in value is the primary reason we have decided to take additional time in finalizing our 2008 financial statements.

What Takes So Much Time

At the end of 2007, NewMarket reported $22.3 million in goodwill and $9.9 million in investments on our balance sheet. The goodwill, accumulated since 2002, is a result of multiple acquisitions. We have acquired several companies since 2002 in the execution of our business plan. We have also made several investments in the execution of our business plan. As a matter of course, all companies are required to revalue the carrying value of their goodwill and investments relative to the current market and business conditions. Due to our numerous acquisitions and investments, this is a large undertaking and we are dedicating the necessary time to appropriately account for the revaluation. This has resulted in an increased time requirement.

2008 Financial Report Overall

NewMarket reported record revenue and continued operating margin improvements through the first three quarters of 2008. We did experience a slowdown of projects in progress in the fourth quarter. We did not enjoy the usual substantial increase in fourth quarter revenue that we have reported in years prior. The Company continues to sign new sales contracts and we remain optimistic that we can manage continued revenue growth in 2009. The $93.1 million in annual revenue reported in 2007 was a record for NewMarket, and we do anticipate reporting record revenue in 2008. We remain optimistic that with some hard work we can report record revenue for 2009.

The revaluation effort discussed here will result in goodwill and investment value reductions on the balance sheet for 2008 compared to 2007. These asset reductions will be reported as a non-cash charge to net income reported on our 2008 income statement and will likely result in the Company reporting an overall loss for 2008. It is important for shareholders to recognize that the Company will still report positive operating income for the year ended December 31, 2008. The overall loss is due to revaluation of certain assets and the associated non-cash charge against earnings to be reflected on our income statement for 2008.

We have scheduled a Webcast for Tuesday, April 21st to discuss our plan to sustain growth in 2009 in the face of the current market conditions. At that time, we will reiterate and expound upon the impact on the 2008 audited financial statement of prevailing market conditions. We will attempt to address any shareholder questions we receive between now and the Webcast.

Best Regards,

Philip J. Rauch
Chief Financial Officer
NewMarket Technology, Inc.

Corporate E-mail Updates

To be added to NewMarket Technology's e-mail database to receive company updates or to obtain more information on the Company, please send an e-mail to or call 214-722-3065.

About NewMarket Technology, Inc. (

NewMarket helps clients maintain the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified systems integration and maintenance services to support the prevailing industry standard solutions from companies such as Microsoft, Oracle, Infor, Cisco Systems, SAP, Siebel and Sun Microsystems. Concurrently, NewMarket continuously seeks to acquire 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 network of Solution Integration subsidiaries in North America and the leading emerging markets around the world to include Latin America, China and Singapore.

NewMarket ranked Number One in Texas, Number Three in the United States and Number Five in North America 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.

The company has continued its rapid growth, reporting $77.6 million in revenue with a net income of $5.8 million in 2006 and most recently $93.1 million in revenue with a net income of $7.3 million in 2007.


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 Information: Contact: NewMarket Technology, Inc. Investor Relations 214-722-3065