NewMarket Technology, Inc. to Acquire 51% Interest in Worldwide Strategies, Inc., and Transform Into Mobile Computing Business With $20 Million in Anticipated 2008 Revenue
Binding Letter of Intent Disclosed in SEC Form 8-K Filed February 19, 2008
DALLAS, TX--(Marketwire - February 20, 2008) - NewMarket Technology, Inc. (OTCBB: NMKT) and
Worldwide Strategies, Inc. (OTCBB: WWSG) today announced a binding letter
of intent (LOI) whereby NewMarket will acquire a fifty-one percent (51%)
majority interest in Denver-based Worldwide Strategies. Worldwide
Strategies is currently a development stage business with approximately 20
million shares outstanding on a fully diluted basis and no substantial
revenues yet established. NewMarket is a global technology services
business with approximately $100 million in annual revenue concentrating on
the continuous introduction of new technologies to new markets. NewMarket
is a rapid growth company that has been near the top of the Deloitte
Technology Fast 500 list for the past three years.
Mobile Computing Business to be Consolidated into Worldwide Strategies
NewMarket recently announced adding a Mobile Computing Solution, to include
mobile software, mobile security and mobile access, to its current
portfolio of emerging technology products and services. NewMarket launched
efforts to build a Mobile Computing Solution offering in the third quarter
of 2007. The Company plans to consolidate its Mobile Computing business
into Worldwide Strategies and anticipates $20 million in sales in 2008
resulting from the new Mobile Computing Solution offering, in addition to
Worldwide Strategies' existing health benefits business solutions program.
Mobile Computing Solution Offering in South America, China and South East
Asia
The Mobile Computing Solution offering to be consolidated into Worldwide
Strategies will include both infrastructure solutions and applications for
provisioning and managing users accessing mobile solutions, in addition to
a number of various industry specific mobile applications, such as online
banking. The initial Mobile Computing Solution offering is being assembled
by the acquisition of three innovative mobile software companies. Details
regarding the Mobile Computing Solution and the three companies being
acquired will be subsequently released. The Worldwide Strategies Mobile
Computing Solution offering will take advantage of NewMarket Technology's
existing emerging economy distribution channels in South America, China and
South East Asia.
Mobile Computing Industry Opportunity in Emerging Economies
The Mobile Computing Industry includes mobile application and security
software used on devices such as handheld computers, PDAs, smartphones and
cell phones. The demand for mobile software applications is being driven in
large part by the growing penetration of mobile phone sales into emerging
economies that currently do not have substantial access to the Internet via
desktop computing. According to IDC, the worldwide mobile phone market
reached a new milestone at the close of 2006 with more than one billion
units shipped worldwide over the year.
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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 such as
Microsoft, 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. In 2006, the company continued its rapid
growth, reporting $77.6 million in revenue with a net income of $5.8
million.
About Worldwide Strategies, Inc. (www.wideinc.com)
Worldwide Strategies is a development stage business that has built a
proprietary affinity marketing process and system to provide clients with
call center software platforms or outsourced client services to include
multi-lingual capabilities. The Company's development to date has resulted
in less than $1 million in liabilities. The affinity market business has
signed several substantial contracts, but has not yet established
substantial revenue. The Company has approximately 20 million shares
outstanding on a fully diluted basis. The NewMarket transaction is
intended to support a strategic business relationship and has been designed
to have added no additional common stock to the issued and outstanding.
The acquisition will be transacted with preferred stock including majority
voting rights.
"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.