DALLAS, TX--(Marketwire - January 20, 2009) - NewMarket Technology, Inc. (
PINKSHEETS:
NMKT)
released a letter to shareholders to preview the Company's 2009 growth
agenda. Philip Verges, the NewMarket CEO, introduces strategy changes in
2009 to sustain the Company's aggressive growth strategy. The letter also
reviews management's shareholder dividend plans to distribute stock in its
regional subsidiaries. The letter is included in its entirety below.
Dear Shareholders -
NewMarket has just completed its highest revenue year ever. The Company
expanded revenue in 2008 entirely through organic sales growth. The
Company has not executed an acquisition in over two years. The Company has
also improved operational profitability in 2008. The majority of
NewMarket's operations are international, located in developing economic
regions that are continuing to experience growth in the face of the global
financial crisis. I remain optimistic about the Company's prospects to
realize ongoing profitable revenue growth in 2009.
The NewMarket management team has kicked off 2009 with an intense schedule
aimed at aggressive 2009 objectives. I have just returned from China with
our regional senior management team and I depart tomorrow for Kenya to lay
the groundwork for launching our next area of operations. I will be in
Brazil with our regional senior management team before the end of January.
The upcoming virtual Town Hall and subsequent communications over the next
several weeks will reveal more details regarding the Company's aggressive
2009 growth agenda.
NewMarket has grown dramatically over the past six years. Our growth has
been the result of an innovative business strategy enthusiastically
executed by a management team that believes in the promise of the
micro-equity public markets to both deliver and derive benefit from
investing in the world's developing economic regions. We have learned a
number of lessons along the way. Some might say we have learned a number
of those lessons the "hard way." We have experienced our fair share of
criticism, but we have also enjoyed the support of many loyal shareholders
that share management's vision in the micro-equity opportunity in the
world's developing economic regions. Management remains dedicated to
realizing NewMarket's vision.
One aspect of NewMarket's innovative business strategy has included a plan
to deliver dividends to shareholders. The Company has invested in
developing new technologies and periodically launching new regional
operations. Management's intention has been to directly share the return
on investment opportunity with shareholders by issuing dividends in new
technology and regional subsidiary operations to NewMarket shareholders.
To date, we have failed to distribute any such dividend. The delay has
been the result of numerous unanticipated issues. While management remains
dedicated to delivering shareholder benefit from the Company's ongoing
expansion into new developing economic regions, we are updating our
strategy as a result of specific lessons learned. Again, we will reveal
more detail regarding our updated strategy in the upcoming virtual Town
Hall and subsequent communications over the next several weeks.
The updated strategy will depart from the plan to issue stock from
subsidiary operations to NewMarket shareholders. However, we will remain
committed to delivering dividends on past commitments. Specifically,
NewMarket intends to continue in its efforts to issue dividend
distributions to enable NewMarket shareholders to directly benefit from the
return on investment opportunity resulting from the Company's regional
expansions into China and South America.
China Crescent Enterprises, Inc., a regional subsidiary in which NewMarket
is the majority shareholder, recently filed a preliminary information
statement. The purpose of the information statement was to inform China
Crescent shareholders of a planned recapitalization. NewMarket plans to
reverse split the common stock of China Crescent in addition to the
possible conversion of a portion of NewMarket's preferred China Crescent
stock into China Crescent common stock.
One objective of the planned recapitalization is to support a dividend
distribution of China Crescent stock to the shareholders of NewMarket.
NewMarket management is currently working with China Crescent management to
develop a plan that would include the conversion of a portion of
NewMarket's preferred ownership into common stock and the dividend of that
common stock to the shareholders of NewMarket. Such a dividend
distribution might require an increase of authorized China Crescent stock,
and as such, the preliminary information statement included a plan to
increase the authorized stock.
NewMarket management is also working with the senior management of
NewMarket Latin America to re-register the NewMarket Latin America
subsidiary as an independently listed company. NewMarket management
remains committed to its plan to independently list its operations in South
America in addition to distributing a portion of NewMarket's ownership of
its independently listed operations in South America to NewMarket
shareholders.
I look forward to sharing more information regarding NewMarket's 2009
growth agenda in the upcoming virtual Town Hall and in subsequent
communications over the coming weeks. I believe 2009 can be a good year
for NewMarket shareholders. While the global economic crisis is certainly
intimidating, I firmly believe such situations create as much opportunity
as risk. I believe NewMarket has an excellent opportunity to seize a
number of opportunities created by the current global economic crisis.
Best Regards,
Philip M. Verges
Founder and CEO
NewMarket Technology, Inc.
"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.
Contact Information: Contact:
NewMarket Technology, Inc.
Investor Relations
214-722-3065
ir@newmarkettechnology.com