Contact Information: Contact: NewMarket China, Inc. Investor Relations 214-722-3065 ir@newmarketchina.com www.newmarketchina.com
NewMarket China, Inc. Issues Update on 2008 Acquisition Strategy to Include Letter of Intent to Acquire Operations With Approximately $100 Million in Annual Revenue
Pegasus Wireless Corp. Enters Into Letter of Intent to Combine Operations With NewMarket's Chinese Operations
| Source: NewMarket China, Inc.
DALLAS, TX--(Marketwire - February 13, 2008) - NewMarket China, Inc. (OTCBB : NMCH ) today
released an update on the Company's 2008 acquisition strategy. In
addition to the anticipation of continued strong organic growth, NewMarket
China plans to expand its current product line, increase profit margin and
substantially augment existing revenue through acquisition.
Continuing Strong Growth From $29.5 Million to approximately $40 Million in
Revenue and Beyond
The Company reported $29.5 million in revenue in 2006 and anticipates
reporting approximately $40 million in revenue for 2007. The Company
anticipates a revenue increase of at least 20% stemming from organic sales
in 2008 and potentially an even greater increase as the result of
acquisitions.
Acquisition Pipeline to Expand Product Line, Increase Profit and Augment
Revenue
The Company's acquisition strategy is centered on diversifying its current
product line with an emphasis on increasing profit margins. Today,
NewMarket China is primarily a provider of globally recognized brand name
technology solutions in China. The intent of the acquisition strategy is
to leverage the Company's current organizational foundation in China to
expand its product portfolio and sales from China into other international
markets. The relatively low labor cost in China provides the Company the
opportunity to sell higher margin technology products and services sourced
in China, into international markets where Chinese market advantages
provide a competitive value proposition. NewMarket China currently has
several acquisition opportunities under consideration. In some instances,
the Company has entered into non-binding letters of intent to acquire
specific operations under certain terms and subject to due diligence.
LOI to Acquire Operations of Pegasus Wireless with $100 Million in Annual
Revenue
The Company has not publicly disclosed the companies being considered for
acquisition. However, the Company's intent to acquire the operations of
Pegasus Wireless has otherwise been disclosed pursuant to a recently filed
public court document. Accordingly, NewMarket Technology, Inc. (OTCBB : NMKT ), NewMarket China's parent company, has received several inquiries
from shareholders regarding the potential acquisition. NewMarket China CEO
John T. Verges has issued the following statement to address shareholder
questions regarding the Company's intent to acquire the operations of
Pegasus Wireless:
"NewMarket Technology, Inc. is the majority shareholder of NewMarket China,
Inc. and NewMarket Technology, Inc. has entered into a letter of intent to
acquire the operations of Pegasus and subsequently to combine those
operations into NewMarket China, Inc. At this stage, the potential of
completing the acquisition must be considered speculative. The letter of
intent is subject to due diligence. Furthermore, Pegasus is an
organizationally distressed operation and certain issues regarding the
subject distress must be specifically resolved for the proposed transaction
between NewMarket and Pegasus to be realized. We are optimistic about the
prospects of the acquisition being realized but cannot forecast with any
certainty the completion of the acquisition, nor the timing thereof."
Corporate E-mail Updates
To be added to NewMarket China's e-mail database of shareholders and
interested investors, please send an e-mail to ir@newmarketchina.com.
About NewMarket China, Inc. (www.newmarketchina.com)
NewMarket China, Inc. is a technology leader in the rapidly developing
Chinese market specializing today in software engineering, high quality
software development and digital multimedia outsourcing services delivered
to customers globally. At the same time, the firm is a systems integrator
and value added reseller of major global hardware brands in the Chinese
domestic market.
Headquartered in Dallas with operations in Shanghai and Beijing, NewMarket
China bridges the gap between Western and Eastern business cultures to
assist western clients in realizing the advantages of the high quality, low
cost technology products and services available from China. NewMarket China
also assists Western clients in localizing products and services to realize
the tremendous growth potential available by expanding into the Chinese
Market.
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.
"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.