DALLAS, TX--(Marketwire - June 24, 2008) - NewMarket Technology, Inc. (
OTCBB:
NMKT) CEO
Philip M. Verges today released a letter to shareholders regarding
yesterday's announcement of the Company's binding agreement to acquire
Everex. The letter is included in its entirety below.
Dear Fellow Shareholders,
Yesterday afternoon NewMarket Technology announced an agreement with
FIC of Taiwan to acquire a 75% interest
in
Everex of Fremont, CA.
NewMarket Technology,
Inc. to Acquire Everex, a Respected Brand Name in Personal Computing
Reporting Approximately $60 Million in Revenue in 2007
Everex is a respected brand name in personal computing established in 1983,
and headquartered in Fremont, California. As a market leader in producing
innovative products, Everex has sold millions of PCs and peripheral
components worldwide. Everex annual sales in 2007 were approximately $60
million.
Everex will be the cornerstone of NewMarket's previously announced mobility
technology solutions initiative. As an example, Everex recently introduced
its latest highly portable computing device named the
CloudBook. The CloudBook is an ultra mobile, low cost and lightweight
portable computer. Furthermore, the CloudBook is WiMax enabled in
preparation for the next generation in wireless broadband internet access.
WiMax technology will offer wireless broadband connectivity ranges in miles
that will make it possible to access the internet from almost anywhere.
NewMarket anticipates the transaction with FIC to acquire Everex to be a
transformational event for NewMarket. In addition to serving as the
foundation of our Mobility Strategy, the transaction will substantially
increase NewMarket's North American sales to be commensurate with
NewMarket's Asian and South American sales. Today, NewMarket's overseas
sales have grown so rapidly that they have outpaced its North American
sales. This transaction will serve to bring much more balance to the
Company's regional revenue streams.
FIC is a leading global manufacturer in the computer industry with a
growing presence in the communication and consumer electronics markets. As
part of the Company's due diligence effort, the NewMarket Board of
Directors has retained outside investment banking advice to assess the
overall financial impact of this transaction on NewMarket. The analysis
report will be completed well before the targeted September closing.
I am sure shareholders are eager to hear the details of the transaction.
Considering the transaction still has substantial time until it closes, the
details are being kept confidential at this time. As we approach the
September closing date, some of the transaction's details will be made
available in stages. However, even after the September closing date many
details regarding the Company's Mobility Strategy will remain confidential
to protect its competitive advantage in the marketplace. The next
generation of WiMax internet access and mobile computing devices is set to
radically alter the way the world works and plays. This is a huge
opportunity for the future of NewMarket.
The transaction is the largest single transaction NewMarket has ever
entered into. We expect the transaction to demonstrate a culmination to
date of NewMarket's efforts to realize its corporate vision of building
independently listed subsidiaries and continuously introducing new
technologies. The Everex product line and the Mobility Strategy will
significantly enhance many of NewMarket's existing emerging market and
emerging technology initiatives. It is very important to note that the
structure of the acquisition does not entail the issue of any NewMarket
Technology common stock nor a security which would subsequently result in
the later issue of NewMarket Technology common stock.
The Company will conduct a Webcast Thursday afternoon, June 26, to briefly
highlight the benefits of the transaction for NewMarket shareholders and
shareholders in the family of independently listed NewMarket subsidiaries.
Details regarding the Webcast will be forthcoming.
Best Regards,
Philip M. Verges
CEO and Founder
NewMarket Technology, Inc.
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"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This communication contains forward-looking statements that involve risks
and uncertainties. The statements in this communication 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 Investor Relations
ir@newmarkettechnology.com
214-722-3065