NMKT

Analyst: Victor Sula, Ph.D.
Initial Report
October 17th, 2008
16/10/08
NMKT daily
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New Market Technology Inc. 0.07
14860 Montfort Drive, Ste 210 0.06

Dallas, TX 75254 United States volume © BigCharts.com
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Phone: 972-386-3372
Millions
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Fax: 214-853-5929
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www.newmarkettechnology.com
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ir@newmarkettechnology.com Aug Sep Oct
MARKET DATA Company Introduction

NewMarket Technology Inc. (NMKT) is a full-service software de-
velopment, systems integration and maintenance provider that
Symbol NMKT also evaluates and incubates new technologies. NMKT has product
Exchanges OTC
reseller and integrator partnerships with many prominent software
Current Price $0.07
Price Target $0.54 vendors, including Microsoft, Hyperion, SAP, Oracle, Cisco, Sun
Rating Speculative Buy Microsystems, iPass and Lockheed Martin Overseas Corp. These
Outstanding Shares 212.2 Million relationships form the base of NMKT’s business and faciliate its
Market Cap. $27.1 Million international expansion. In addition, NMKT, searches for innova-
Average 50-day Volume 927,188 tive new technolgies that can be developed into high-margin sales
opportunities.
Source: Yahoo Finance, Analyst Estimates
The well-known products of its partners enable NMKT to establish

customer relationships that would otherwise be difficult to achieve
with lesser-known products and services. NMKT’s ultimate goal is
offering its existing customers new products and services based on
emerging technologies that would be difficult to market without an
existing relationship.
The Company went public in 2002 by reorganizing into an exist-

ing Voice over Internet Protocol (VoIP) company. Because of its
heritage, NMKT is often mistaken for a simple telecommunications
company. However, since 2002, the Company has built product and
service offerings that not only include VoIP, but also incorporate
healthcare practice management software, municipal wireless so-
lutions, offshore outsourcing, multimedia, network security and
more. NMKT’s customers include large and small corporations,
service providers, universities and government agencies in North
America, South America and Asia.
The Company has been ranked by Deloitte as one of the fastest-
New Market Technology Inc. (OTC: NMKT) 1

Initial Report
October 17th, 2008
growing technology-based businesses in North America for the past four years. In 2006, NMKT ranked No. 1 in
Texas, No.3 in the United States, and No. 5 in North America on Deloitte’s Technology Fast 500, a ranking of the
500 fastest-growing technology, media, telecommunications and life sciences companies in North America. The
Company grew from less than $1 million in revenues in 2002 to more than $50 million in profitable revenues in
2005. NMKT continued its rapid growth, reporting $77.6 million in revenues and net income of $5.8 million in
2006, and $93.1 million in revenues and net income of $7.3 million in 2007.
NMKT is headquartered in Dallas, Texas, and has offices in Venezuela, Brazil, Chile, Singapore and China.
Investment Highlights
Stellar revenue growth
The Company has reported robust revenue growth since its reorganization in 2002. In six years, NMKT has
grown from less than $1 million in revenue to $93.1 million in 2007 - nearly more than 9,000% revenue growth.
The growth is the result of a combination of geographical and market expansion though acquisitions and strong
organic growth in NMKT’s core markets. During the first quarter of 2008, NMKT’s revenue increased 15% year-
over-year to $20.9 million. Growth continued at a more modest pace in the second quarter with revenues rising
4% year-over-year. The growth was primarily due to increased sales in the Company’s Latin American and Chi-
nese systems integration subsidiaries. In the third and fourth quarters of 2008, we expect sales to drive growth
in the Company’s North American assets to levels similar to its overseas assets.
Future growth plans call for expansion into the financial acquisition services market, expansion into other de-
veloping world markets including Eastern Europe and Africa, and the continued acquisition of complementary
businesses. Based on the Company’s growth initiatives and management’s outlook, we expect NMKT to report
revenue in the range of $120 million in 2008 and $160 million in 2009.
Improving operating margins despite gross margin contraction
Competition within its core lines of business, as well as the continuing trend toward outsourcing in North Amer-
ica, has caused the Company’s gross margins to contract. The systems integration and software development
industries have both experienced margin erosion over the past several years, and this trend will likely continue
to pose a challenge for NMKT and others. However, the Company also has overseas assets that can be leveraged
to combat gross margin declines in its North American business and NMKT is developing its own outsourcing
opportunities. In addition, the Company’s development of emerging technology assets could yield much higher
margins. We also believe that NMKT’s continued sales growth will enable the firm to realize benefits from econo-
mies of scale. For example, second quarter 2008 operating margins rose to 5.4% from 4.0% in the same period
last year. In the first quarter of 2008, NMKT’s operating margin increased to 6.3% from 2.9% one year earlier. We
think this margin improvement trend is likely to continue for the remainder of 2008 and into 2009.
Solid product offerings in partnership with leading IT companies
As mentioned earlier, NMKT has established reseller agreements and partnerships with some of the world’s
leading IT companies. These products open the door to new customer relationships and allow NewMarket to
establish a presence in new geographical regions, many of which are outside the United States.
The Company is working to develop its own proprietary emerging technologies that it hopes to sell to its estab-

Initial Report
October 17th, 2008
lished customer base. NMKT’s plan is to develop newer technologies that will compliment its existing products
and services and drive higher-margin sales. This emphasis on cross-selling new technologies gives the Company
an advantage over many traditional systems integration companies.
Business model capitalizing on IP communication technologies
NMKT has developed an innovative business model that focuses on searching for, acquiring, developing and spin-
ning off emerging technology companies to generate equity income for its shareholders. Equity income would be
in addition to traditional product and service revenues and profits. By developing independently-listed subsidiar-
ies, the Company has the opportunity to use shares of its subsidiaries for a variety of purposes. NMKT has become
a conglomerate of micro-cap public companies and should benefit from economies of scale and greater bargaining
power.
Aggressive acquisition campaign
Since 2002, the Company has built a solid portfolio of technology companies. Its goal is to deploy technology so-
lutions over a larger number of industries and to better serve the global marketplace, particularly the America’s
and Asian marketplaces. In June 2008, NMKT announced a definitive and binding agreement with FIC of Taiwan
to acquire a 75% interest in Everex of Fremont, California, a respected brand name in personal computing and
a market leader in producing innovative products. Everex has sold millions of PCs and peripheral components
worldwide, and reported 2007 sales of $60 million.
This transaction can be a transformational event for NMKT. First of all, Everex is being acquired to serve as
the cornerstone of the Company’s mobility technology solutions initiative. Mobility solutions promise to be a
quantum development in the world of technology and personal computing. Secondly, the transaction is likely
to substantially increase NMKT’s North American sales to levels comparable to the Company’s Asian and South
American sales. A more balanced blend of domestic and overseas sales will likely make future financing transac-
tions easier for NewMarket, since many fund-raising efforts in North America can be limited by a predominance
of overseas assets.
Managed services strategy enhances revenue potential
NMKT launched a new strategy earlier in 2008 to

transition the Company’s revenue to long-term
managed services contracts and customer relation-
ships. The objective of the managed services strat-
egy is to improve the Company’s value by extend-
ing the average length of customer relationships
and contracts while improving the efficiency of
regional operations through the consolidation of
back office functions.
By extending the length of contracts, customer ac-

quisition costs are reduced and forecasts become
more accurate. NMKT’s sales base should become
more stable, allowing the Company to focus a
greater portion of its efforts on long-term growth

Initial Report
October 17th, 2008
rather than the renewal of shorter term contracts. Since launching the managed services strategy, NMKT has
won longer-term contracts with some of its established customers. Most notable are WBA Telecommunications,
with a $10.5 million three-year contact, and a $4 million, three-year contract with Movistar, a division of Telefo-
nica.
CEO leadership
NMKT’s CEO Philip Verges should be given much of the credit for the Company’s results. Mr. Verges joined the
Company (in fact, re-invented the Company) in 2002, bringing entrepreneurial experience, development strat-
egy, technology products and system integration relationships that allowed NMKT, in a short period of time,
to become one of the industry’s most dynamic players. Mr. Verges’ experience with start-ups and development-
stage businesses includes opening a new division for Electronic Data Systems, establishing operations in a new
geographic region for another systems integration company, and launching his own business, VergeTech Inter-
national, which grew from $0.3 million in revenues in 1997 to $11 million in 2001, finally merging it into what
is now NewMarket Technology.
Market opportunity
A favorable industry outlook supports NMKT’s business model. The Company is building a business at the
convergence of the telecom and IT industries. Both industries are poised for strong growth over the long-term,
which will provide emerging companies with numerous opportunities. According to the Telecommunications
Industry Association (TIA), global telecom spending is likely to exceed $2.9 trillion in 2006 and will grow 10%
annually over the next several years to $4.2 trillion in 2010. At the same time, IDC forecasts worldwide IT spend-
ing will grow 6% annually from $1.2 trillion in 2006 to $1.5 trillion in 2010.
Most of the growth is expected to come from NMKT’s target regions and industries, particularly, Asia-Pacific,
Latin America and Eastern Europe, as well as the banking, health care, communications and media industries.
Business Model
NMKT is developing market entry technology products and services, while maintaining a core systems integra-
tion base of business. NMKT does business in several market segments, with a focus on Telecommunications,
Healthcare and Security. The Company also plans to develop technologies for the financial acquisition services
segment.
Technology sector businesses face two substantial industry-wide challenges. The first is the growing global tech-
nical labor force, which puts significant pressure on profit margins as technology companies continue to ratchet
down expenses and sell products at prices below competitors by employing a technology labor force from
developing countries. Secondly, since the collapse of the dotcom investment market, the technology sector has
been unable to re-establish consistent investment community interest in technology innovation. Profit margin
pressures deter investment community interest and make internal research and development investment less
attractive.
The Company’s business strategy focuses on the following:
1) Maintain a core systems integration base of business;
2) Additionally, Find and acquire timely early-stage technology companies;

Initial Report
October 17th, 2008
2) Incrementally invest to refine acquired technologies;
3) Concentrate initial sales efforts on focused pilot opportunities;
4) Expand pilot opportunities as warranted to a level that proves market viability;
5) Spin the technology company off as a next stage, stand-alone public company to support expanded
capital formation;
6) Realize support services economies of scale by retaining support service contract functions at NMKT; and
7) Build service and sales capacity in developing economies overseas to take advantage of lowe labor costs and
sell into fast-growing economic regions with less brand name competition than in North America.
To this end, NMKT has introduced a unique business model, which we believe addresses issues such as the glo-
balization of the techology work force which are causing profit margin pressures. NMKT holds each technology
product and service offering within a subsidiary company. As the product and service offering matures, the Com-
pany plans to monetize the value of the technology through an incremental liquidation of stock in the subsidiary.
Moreover, by spinning off its maturing subsidiaries, NMKT will generate equity income for its shareholders in
addition to traditional product and service revenues and profits.
Technology Portfolio
NewMarket has built a solid portfolio of technology companies. Its businesses are diverse in their geographi-
cal reach, products and service. Many of these companies were acquired, but some have been grown internally
through start-up efforts, most notably NMKT’s Chinese subsidiary. Readers should note that this subsidiary, for-
merly known as NewMarket China, recently changed its name to China Crescent Enterprises (ticker symbol:
CCSE).

Initial Report
October 17th, 2008
NewMarket Portfolio of Companies
Country Subsidiary Affiliate

Company Name Business Focus
Focus >51% owned <51% owned
China Crescent Peoples Republic Yes N/A Hardware VAR Offshore

Enterprises Inc. of China Outsourcing Multimedia
(OTCBB: CCSE)
NewMarket Latin America Brazil, Chile, Yes N/A Software Development

Inc. (OTC: NLAI) Venezuela Systems Integration
NewMarket Broadband TX, U.S. Yes N/A Wi-Fi & Wi-MAX
NewMarket Intellectual TX, U.S. Yes N/A Patented Emerging

Property Technology
Infotel Technologies Ltd. Singapore Yes N/A Software Development

Systems Integration
RKM Suministros S.A. Venezuela Yes N/A Software Development
Systems Integration
UniOne Consulting Brazil, Chile Yes N/A Software Development
Systems Integration
IP Global Voice CA, U.S. Yes N/A VoIP Commercial Solutions
TekVoice FL, U.S. N/A Yes VoIP Commercial Solutions

Communications Inc.
RedMoon Broadband Inc. TX, U.S. N/A Yes Wi-Fi & Wi-MAX
Source: Company’s presentation
To date, NMKT’s revenues have been derived from the following product areas:
• Software licensing;
• Long-distance telephone services;
• Technical independent consulting; and
• Security.

Initial Report
October 17th, 2008
NewMarket sales model
North
Traditional
America
Technologies
From companies such as:
• Microsoft South
• Oracle
• SAP America
• Infor
Sytems
Integrations
New
China
Technologies
For example:
• VoIP
• Wireless
• RFID SE Asia
• Security
Source: Company’s presentation
Systems integration
NMKT provides full service systems integration, customization and implementation for a variety of software and
hardware products in North America, Asia and Latin America. The Company re-sells, installs, customizes and
supports products from Microsoft, SAP, BAAN, Hyperion, SSA Global, etc. In addition, NMKT offers comprehen-
sive consulting to identify and implement system solutions or to execute a specific project focused on areas such
as forecasting or security enhancement, to name a few.
NewMarket Systems integration subsidiaries:

Initial Report
October 17th, 2008
Telecommunications
NMKT provides Voice-over-IP and traditional phone lines to both business and residential customers, includ-
ing the latest complementary voice system services. In addition, the Company offers broadband access to busi-
ness and residential customers, as well as Wireless Mesh systems for municipalities and corporate campuses.
NMKT’s hardware partners include Cisco, Polycom, 3COM, Linksys and Edgewater.
NewMarket Telecommunications subsidiaries and affiliates:
Security
NMKT offers data integration and customization, as well as security solutions to protect customer’s information
and communications. NMKT’s subsidiaries can design, develop, manufacture, install and market specialty prod-
ucts, equipment and systems for the safety and security needs of all sectors of the domestic and international
marketplace. When commercial off-the-shelf products do not fulfill critical customer requirements, NMKT can
design specialized hardware and software solutions.
NewMarket Security subsidiaries:
Healthcare
NMKT has entered the emerging healthcare technology products and services market with products and servic-
es that address this market’s demands for increased productivity and security. The Company offers its healthcare
clients the latest solutions in practice management, prescription tracking and monitoring.
NewMarket Healthcare partners:
Virtual Health Technologies

Initial Report
October 17th, 2008
In addition, NMKT continues to search for, evaluate and acquire emerging technologies that may provide distinc-
tive advantages to customer’s business and enhance the Company’s existing solutions portfolio. NMKT also plans
to develop products and services for the financial acquisition services sector.
Everex acquisition
During June 2008, NMKT announced an agreement with FIC of Taiwan to acquire a 75% interest in Everex of
Fremont, California. The Company announced the end of September as the target date for completing this transac-
tion. While we expect the transaction to be complete during this calendar year, we are not surprised that the trans-
action has not closed by the September target date due to the magnitude of the transaction. NMKT also noted that
the structure of the acquisition does not entail the issue of any NMKT common stock or a security which would
subsequently result in the later issue of NMKT common stock.
The acquisition brings significant WiMax Internet expertise to NMKT and has the added benefit of establishing an
ongoing relationship with FIC of Taiwan, one of the largest companies in Asia. This acquisition will give NMKT
a jump-start in its mobility technology initiatives with WiMax enabled product and services. Everex recently in-
troduced CloudBook, an ultra-mobile, low-cost and lightweight portable computer. A Wi-Max enabled version of
the CloudBook is scheduled for release in the first half of 2009. The next generation of WiMax Internet access and
mobile computing devices is poised to radically alter the way the world works and plays. The Everex product line
and the Company’s mobility strategy position NMKT at the forefront of this trend and significantly enhance many
of the Company’s existing emerging market and emerging technology initiatives.
Through this transaction, NMKT will also be able to substantially increase North American sales since Everex al-
ready has established revenues in the United States, reporting annual sales of $60 million in 2007. Since expanding
into emerging markets worldwide, NMKT’s sales outside of the United States have grown faster than its domestic
sales. In addition, NMKT will benefit from improved cash flow and increased overall financial maturity. Also
notable is the impact the transaction will have on the Company’s Asian operations, particularly China. Everex is
a respected name in computer hardware, which is currently a vital part of China’s infrastructure improvements.
As NMKT moves toward higher-margin service offerings, a partnership with an Asian company outside of China
will enhance the Company’s strategy, as selling Chinese hardware products in China typically produces only
modest profit margins. In turn, NMKT can assist Everex in entering additional markets such as Latin America
where NMKT already has established operations.
Industry Outlook
Telecommunication and IT industries
According to the Telecommunications Industry Association (TIA), global telecom spending is likely to exceed $2.9
trillion in 2006 and will grow 10% annually to $4.2 trillion in 2010. IDC estimated that worldwide end-users spent
$1.2 trillion on information technology in 2006 and will increase IT spending 6% annually to $1.5 trillion in 2010.

Initial Report
October 17th, 2008
Global telecom spending, $ trillion Global IT spending, $ trillion
4.8 1.6 1.5

4.2
2.9
3.6 1.2
2.9
2.4 0.8
1.2 0.4
0.0 0.0
2006 2010 2006 2010
Sources: http://www.tiaonline.org/media/2004_TIA_Industry_Outlook.pdf, http://www.tiaonline.org/business/media/press_releases/2006/PR06-14.cfm.

http://www.idc.com/getdoc.jsp?containerId=202600
According to IDC, the major share of the growth will come from emerging economies, particularly Asia-Pacific,
Latin America and Eastern Europe. Growth in the manufacturing and banking sectors, as well as the health care,
communications and media industries, will outpace overall industry growth.
VoIP market
The VoIP market has grown dramatically since the early days of calls made from personal computers. VoIP is
an alternative communications technology that can circumvent traditional landlines by translating voice into
data packets, transmitting the packets over Internet networks, and reconverting them into voice at the destina-
tion. Unlike traditional landline networks, VoIP doesn’t use dedicated circuits for each telephone call. Instead,
multiple users can share the same VoIP network simultaneously. These systems are more efficient since the data
network is not restricted by the one-call, one-line limitations of traditional telephone networks. This improved
network efficiency creates cost savings that can be passed along to consumers as lower phone rates.
At the end of 2004, only 1.8 million VoIP lines were in service across Europe, equivalent to slightly more than
1.0% of households. By mid-year 2007, approximately 22 million European households had VoIP telephone
service. The number of U.S. VoIP subscribers has risen from 6.5 million in mid-2006 to 11.8 million in mid-2007 -
equivalent to 10% of all U.S. households. According to eMarketer predictions, the number of U.S. VoIP users will
climb to 32.6 million in 2010, equal to nearly 40% of all broadband households1.
1. www.researchandmarkets.com/reports/c35746

Initial Report
October 17th, 2008
Worldwide VoIP subscribers (in millions)
180
160 152.6
140
115.4
120
100
87.3
80
66.1
60 50
40 37.8
20
0
2006 2007 2008 2009 2010 2011
Source: web20.telecomtv.com/docs/e9e52ba6-695b-4578-b169-6b4472f71297/The%20Race%20for%20Revenue.pdf
Worldwide VoIP service revenues jumped 66% in 2006 to $15.8 billion after more than doubling in 2005, and are
expected to triple by 2010, according to Infonetics Research2. About 71% of worldwide VoIP service revenues came
from residential/SOHO customers and 29% from business customers in 2006. By 2011, In-Stat predicts the world-
wide consumer VoIP market will reach $44 billion.
Across Europe, revenues from VoIP services are growing at a comparable pace. Annual revenues from consumer
VoIP services approximated €583 million3 in 2005 and €1.5 billion in 2006. VoIP revenues were estimated to ex-
ceed €2.8 billion in 2007. Western European VoIP service providers are expected to generate revenues exceeding
€5.4 billion by 2011.
SoftBank is the world’s largest VoIP service provider with an 18% market share, followed by NTT, Vonage, France
Télécom and Time Warner Cable.
Another important market for VoIP services involves international calls. VoIP offers an affordable alternative to
the high prices charged by Public Switched Telephone Network (PSTN) companies. Based on TeleGeography’s
estimates, international VoIP traffic exceeded 50 billion minutes and represented 17% of the global market in 2006,
compared with 31 billion minutes and 13.7% of the market in 2004. VoIP minutes will continue to drive traffic
away from traditional PSTNs and into IP core backbones, requiring service providers to handle multiple types of
traffic as VoIP services and applications continue to proliferate.
2. www.voipmonitor.net/2007/08/09/VoIP+Service+Revenue+Hits+158B+In+2006.aspx
3. www.telegeography.com/products/euro_voip/samples/Executive_Summary.pdf

Initial Report
October 17th, 2008
Worldwide traffic, billions of minutes
30%
350
VoIP Minutes
300 TDM Minutes 25%
Total Minutes Growth
250 20%
TDM and VoIP Traffic (billions od minutes)
200
15%
150
TDM and VoIP Traffic Growth

10%
100
5%
50
0 0%
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Source: http://www.telegeography.com/wordpress/?m=200712
Internet usage
Continued growth in the number of Internet users is expanding the customer base for IP-based services. The
number of Internet users already exceeds 1.0 billion worldwide. As of September 30, 2007, there were 1.2 billion
Internet users, according to Internet World Stats.
Internet Usage
Population, Internet Users, User Growth
Mn % Pop. Latest Data, Penetration % Usage ( 2000-
(2007 Est.) of World Mn (% Population) of World 2007 )
Europe 809.9 12.3 % 337.9 41.7 % 27.2 % 221.5 %

North America 334.5 5.1 % 232.6 69.5 % 19.8 % 115.2 %
World’s total 6,574.6 100.0 % 1,244.4 18.9 % 100.0 % 244.7
Source: www.internetworldstats.com/stats.htm
The number of Internet users worldwide is expected to reach 2.0 billion by 2011.

Initial Report
October 17th, 2008
Broadband usage
Internet telephony is essentially a broadband phenomenon. Increasing broadband penetration rates facilitate the
rapid deployment of voice, video and data IP services. Broadband is often called high-speed Internet because of
its high data transmission rates. The number of broadband connections worldwide is rising steadily as more users
tap high-speed technologies for peer-to-peer (P2P) file sharing systems, music and games downloading, video-
on-demand and conference calls.
At the end of the first quarter of 2007, there were an estimated 300 million broadband subscribers worldwide.
Last year, the number of broadband subscribers in the OECD countries increased 24% to 221 million4 (June 2007).
For every 100 OECD residents, 18.8 had broadband subscriptions, up from 15.1 two years ago. The strongest per
capita subscriber growth rates were in Ireland, Germany, Sweden, Australia, Norway, Denmark and Luxembourg.
Each of these countries added more than five subscribers per 100 residents in 2007.
The Telecommunications Industry Association (TIA) estimates the total U.S. broadband subscriber base will reach
57 million in 2008, up from 32.5 million in 2004. According to TIA, the United States had fewer than 5 million
broadband subscribers in 2001. The number of U.S. subscribers grew 35.4% in 2004 to 32.5 million. The breakdown
by broadband technology was as follows: cable modem (17.0 million), DSL (12.6 million), fixed wireless (2.2 mil-
lion), fiber-to-the-home (0.2 million), satellite (0.4 million), mobile wireless (3G) (0.1 million) and broadband-over-
power line (less than 50,000).
Financial Analysis
Revenues
The Company is generating revenues by offering technology products and services in the telecommunication,
healthcare and security markets. To date, the Company’s revenues have come primarily in the following product
areas: hardware sales, software licensing; systems integration; technical independent consulting; and security.
The strong revenue growth reported since NMKT’s inception reflects a combination of geographical and market
expansion though strategic mergers and acquisitions. During the first quarter of 2008, NMKT’s revenue increased
15% year-over-year to $20.9 million. Growth continued at a more modest pace in the second quarter of 2008, with
revenues improving 4% year-over-year to $22.8 million. This gain was primarily due to increased sales in the
Company’s Latin American and Chinese systems integration subsidiaries.
Future revenue growth will come from introducing new products in the financial acquisition services segment,
expansion into other emerging markets like Africa, the Middle East and Eastern Europe and the acquisition of
complementary businesses. Over the long-term, the Company plans to lay the groundwork for sustainable growth
by capitalizing on the IT and telecommunication industries’ strong fundamentals and leveraging acquisitions and
organic growth
4. http://cordis.europa.eu/search/index.cfm?fuseaction=news.simpledocument&N_RCN=28639

Initial Report
October 17th, 2008
Revenues, $ Mn
Source: SEC Filings
Segments
NMKT has three reporting segments:

• Services and computer programming services;
• Contracts, particularly training contracts and technical support contracts; and
• Product sales, which consist of the sale and installation of hardware and software.
The Services segment provides 89% of total revenues.
Revenues by segment
2005 2006 2007 2007 vs. 2006
Revenues 50.1 77.6 93.1 19.9%

Services revenue 39.1 67.8 83.3 22.7%
Contract revenues 3.1 3.8 3.3 -14.1%
Product revenues 7.9 5.9 6.5 9.8%
Gross Margin 37.0% 28.2% 27.7% -0.5%

Services COS 39.0% 28.9% 28.9% 0.0%
Contract COS 45.9% 29.9% 15.4% -14.5%
Product COS 23.7% 19.3% 18.4% -1.0%
Source: SEC Filings

Initial Report
October 17th, 2008
NMKT’s overseas operations are located in Brazil and Chile (UniOne), Venezuela (RKM), China (China Crescent
Enterprises) and Singapore (Infotel), and together account for 71.5% of total revenues. The breakdown of revenues
by operation is as follows: UniOne, 21%; RKM, 4%; China Crescent Enterprises, 43%; and Infotel, 3.5%.
Income statement
As mentioned earlier in this report, competition within NMKT’s core lines of business, as well as the continuing
outsourcing trend in North America, has put pressure on the Company’s gross margins. NMKT’s core capabilities
are in industries that have experienced margin contraction over the past several years. However, the Company
also has overseas assets that can be leveraged to combat margin compression in North America. NMKT may also
develop its own outsourcing capabilities. In addition, the Company’s development of emerging technology as-
sets could yield much higher margins. We also assume that with continued growth, NMKT will realize greater
benefits from economies of scale.
Operating results
2006 2007 % Chg Q2 2007 Q2 2008 % Chg
Revenue, $ Mn 77.6 93.1 20% 21.9 22.8 4%

Cost of goods sold, % revenue 71.8% 72.3% 0.5% 76.2% 75.0% -1.2%
Other operating expenses, % of revenue 22.4% 22.1% -0.3% 19.8% 19.6% -0.2%
Operating margin 5.7% 5.6% -0.2% 4.0% 5.4% 1.4%

Net margin* 8.5% 8.5% 0.0% 2.6% 6.6% 2.6%
Diluted EPS, $ 0.03 0.03 0% 0.00 0.00
* Net income includes foreign currency translation gains. Source: SEC Filings
Liquidity
Since its inception, NMKT has financed operations primarily through equity security sales. NMKT has recently
begun to report higher operating cash flows, allowing the Company to scale back its use of external financing. In
addition, NMKT has retired some of its interest-bearing debt, thus improving its capital structure, and recently
announced the retirement of a $3 million credit facility

Initial Report
October 17th, 2008
Balance sheet items, $ Mn
31-Mar-08 31-Jun-08
Cash and equivalents 4.7 4.4

Net Working Capital 21.6 22.5
Debt 6.8 6.2

Equity 76.2 67.2
Source: SEC Filings.
Valuation
Revenue forecast
In a recent press release, NMKT management suggested that NMKT could report higher-than-anticipated rev-
enue growth in 2008, and revenues exceeding $120 million this year, based on organic growth; the company
anticipates revenues potentially exceeding $150 million if acquisitions are included. NMKT has a good track re-
cord for customer retention and has been building upon its existing customer base year after year. As of July 31,
2008, the Company had already signed sales contracts with new customers expected to bring in approximately
$25 million in new revenues by year-end. These new contracts were not included when NMKT management
originally shared 2008 revenue goals. The Company’s historically strong annual growth combined with these
new contracts will likely enable NMKT to record the best financial performance in its history this year.
Given the favorable industry outlook, recent Company initiatives and NMKT’s strong integrator and reseller
partnerships, we expect the Company to record strong growth over the next five years. We think the Company
is on track to exceed $120 million in revenues in 2008 and surpass the $160 million milestone in 2009.
A strong portfolio of technology companies, an innovative business model, the rapid rollout of China and Latin
America operations, as well as the pending Everex acquisition, are all factors that support an optimistic growth
outlook.
Revenue forecast, $ Million
Source: SEC Filings, Analyst estimates

Initial Report
October 17th, 2008
Despite the fact that NMKT’s gross margins are under pressure, we expect the Company to gain efficiencies
through economies of scale as sales rise and improve product and service margins with its growing portfolio of
emerging technologies. These factors should fuel improvements in operating margins and allow the Company to
accelerate growth in net income and free cash flow.
EPS forecast, $
Source: SEC Filings, Analyst estimates
Peer Comparison
A number of publicly traded companies have product and service offerings comparable to NMKT and are facing
similar challenges. However, NMKT is traded at a significant discount to peer group Price/Earnings and Price/
Sales multiples.
Company Name Comparative analysis

11-Aug-08
Ticker Price per Mrkt. Cap. P/E P/S
symbol Share, $ $ Mn 2008 2009 2008 2009
Electronic Data Systems EDS 24.85 12,560 17.50 14.79 0.55 0.54
Affiliated Computer Services ACS 50.37 4,870 12.95 11.58 0.73 0.69
Acxiom ACXM 14.19 1,100 20.57 17.10 0.81 0.77
Perot Systems PER 17.46 2,090 17.64 15.45 0.74 0.69
Computer Sciences CSC 45.84 6,930 10.66 9.73 0.39 0.38
iGATE Corp. IGTE 10.67 575 18.72 15.93 2.54 2.21
Peer median 17.57 15.12 0.74 0.69
NewMarket Technology NMKT 0.13 27 3.03 2.18 0.22 0.16
Source: Yahoo Finance

Initial Report
October 17th, 2008
We think some discount relative to the peer group is warranted since NMKT has a limited operating history, fo-
cuses on emerging and arguably unstable markets in Asia and Latin America, and may use equity for acquisitions,
resulting in dilution for its existing shareholders. We value these shares at a 9.3 times forward Price/Earnings
multiple, which is less than the peer group’s 15.1 times forward Price/Earnings multiple.
We derive a $0.54 target price for NMKT shares by multiplying a 9.3 times forward Price/Earnings multiple by
our $0.059 2009 EPS estimate. We are initiating coverage of NewMarket Technology with a Speculative Buy rating
and a $0.54 price target.
Investment Risks
Development-stage business
Despite substantial progress over the last six years, NMKT remains in the development stage, with limited prof-
itability and resources for acquisitions. Consequently, there are uncertainties related to the Company’s ability to
increase revenues through acquisitions and improve profitability.
Ability to manage and integrate acquisitions
NMKT has grown through acquisitions, and the Company indicates acquisitions remain an essential component
of its business strategy. Significant expenses are often associated with acquisition-related due diligence, and ne-
gotiations with acquisition targets. Considerable effort is required to raise financing for acquisitions and much
management time is consumed integrating, developing and spinning off acquired companies as viable and self-
sufficient businesses. There is no assurance that NMKT will be successful in completing targeted acquisitions or
enhancing shareholder value through acquisitions.
Financing could result in share dilution or increase financial risks
The Company anticipates current cash reserves will be sufficient to satisfy its operating needs over the next 12
months. However, NMKT will likely require additional financing in the future to further develop its products and
services portfolio, capitalize on acquisition opportunities and respond to competitive challenges. Issuing stock to
raise funds dilutes the interests of existing shareholders while debt instruments increase financial risk.
Competition from existing players and solutions
Both the IT and telecom industries are highly competitive and subject to rapid change. A number of companies
have products and services similar to NMKT, and some of these competitors have greater customer bases, brand
recognition and financial resources.
In addition, rapidly evolving technologies and innovation will require NMKT to make significant ongoing invest-
ments in research and development.
Margin erosion
Price competition and the migration of operating facilities to developing countries have compressed industry
profit margins. Declines in NMKT’s gross margins offset some of the operating margin gains the Company has re-
alized from new technologies and economy of scale benefits. Going forward, we expect NMKT’s revenue growth
to create operating leverage that will enable the Company to improve operating and net margins.

Initial Report
October 17th, 2008
Management
Philip M. Verges Philip Verges has built the Company from a technology start-up in 1997, to a global business focused on
emerging technologies and developing economies. In his first foray into the role of entrepreneur, Mr. Verg-
Founder, Chief Executive es founded VergeTech (VTI) in 1997, a firm that specialized in providing leading edge technology services.
Officer and Chairman After merging his company with IPVoice Communications in 2002, Mr. Verges devised and implemented
the company’s new business strategy of developing market-entry technology products and services into
early and mainstream technology products and services through established system integrator relation-
ships. This led to the formation of NewMarket Technology.
Since that time, Mr. Verges has been instrumental in NMKT’s successful acquisitions of technology-based
businesses in North America, Asia and Latin America, and in the formation of two publicly-traded sub-
sidiary companies, China Crescent Enterprises Inc. and NewMarket Latin America. A graduate of the U.S.
Military Academy at West Point, Mr. Verges’ early career included time in the Computer Sciences Research
and Development Department of General Motors as an employee of Electronic Data Systems (EDS). His
initial business start-up experience was at EDS with a new division focused on call center technology for
financial institutions. Later, Mr. Verges added to his start-up experience by opening a new geographic
region for a $30 million technology services business. Mr. Verges has been recognized by Ernst and Young
as an Entrepreneur of the Year Finalist and as a Tech Titan Corporate CEO finalist, sponsored by Deloitte
and Touche.
Philip J. Rauch Philip J. Rauch joined NewMarket as CFO in 2006. Prior to that, Mr. Rauch served as COO and CFO for
Defense Technology Systems Inc. Previous positions held by Mr. Rauch include vice president of business
Chief Financial Officer & operations and controller at AboveNet Inc., vice president and CFO of Columbus Construction, and vice
Director president and CFO of Garofalo Electric Co. Mr. Rauch holds a Bachelor of Science degree in economics with
honors from the University of Pennsylvania Wharton School of Business, with a concentration in finance
and accounting.
James Mandel James Mandel has been the CEO and a director of Multiband Corp. since October 1998. From October
1991 to October 1996, Mandel served as vice president of systems for Grand Casinos Inc., where his duties
Director included managing the design, development, installation and on-going maintenance for the 2,000 room,
$507 million Stratosphere Hotel, Casino and Tower in Las Vegas. Mr. Mandel also managed the systems
development of Grand Casino Mille Lacs in Onamia, Minnesota, the Grand Casino Hinckley in Hinckley,
Minnesota, and six other casinos nationwide. He also serves as chairman of the board of CorVu Corp. and
is a trustee of the Boys and Girls Club of Minneapolis.
Bruce Noller Bruce Noller brings more than 25 years of financial, operational and marketing experience to NMKT. Mr.
Noller was formerly the president of Noller and Associates Inc. Before he founded his own firm in 1994,
President of Managed he served as vice president for Integrated Control Systems, a worldwide management consulting firm.
Services & Director During that time, Mr. Noller proposed and oversaw engagements within a variety of industries including
healthcare, distribution, manufacturing, retail, banking, insurance, mining and telecommunications. Mr.
Noller has international management consulting experience in Singapore, Malaysia, China, Canada, Latin
America and Europe. Mr. Noller holds an MBA from the University of North Texas.

Initial Report
October 17th, 2008
Hugh G. Robinson Hugh G. Robinson is the former chairman and a board member of the Federal Reserve Bank of Dallas,
previously serving as an officer in the United States Army, retiring with the rank of Major General. Mr.
Director Robinson is currently a member of the board of directors of CarMax Inc., Aleris International Inc., and a
member of the advisory board of TXU Corp. Mr. Robinson is a graduate of the U.S. Military Academy at
West Point, and earned a master’s degree in civil engineering at the Massachusetts Institute of Technol-
ogy (MIT). He received an honorary Doctorate of Law from Williams College and attended the Harvard
Management Program for Executives. Mr. Robinson’s military career included a number of prestigious
posts such as serving as aide de camp to President Lyndon B. Johnson. After retiring from the military, Mr.
Robinson joined The Southland Corp. as vice president and president of Cityplace Development Corp., a
subsidiary of Southland. From 1989 through 2002, Mr. Robinson served as chairman and CEO of The Tetra
Group Inc., a Dallas construction management company with divisions in minority business development
and affordable housing. Mr. Robinson serves on the board of directors of the North Texas Public Broadcast-
ing Co. Inc., the LBJ Foundation Inc. and the Better Business Bureau. He is a member of the Dallas Citizens
Council, the National Society of Professional Engineers, the Greater Dallas Chamber and the Dallas Black
Chamber.

Initial Report
October 17th, 2008
Appendix: Income statement projections, $
2006 2007 2008E 2009E
REVENUES
Services revenue 67,847,261 83,280,821 112,429,108 150,655,005
Contract revenue 3,847,945 3,305,066 4,296,586 5,413,698
Product revenue 5,940,416 6,522,229 8,478,898 10,852,989
Total revenue 77,635,622 93,108,116 125,204,592 166,921,692
COST OF SALES
Services COS 48,262,075 59,203,151 83,297,127 112,070,115
Contract COS 2,698,207 2,795,461 3,720,031 4,703,480
Product COS 4,792,157 5,324,366 7,006,465 9,000,834
Total cost of sales 55,752,439 67,322,978 94,023,623 125,774,429
Gross Margin 21,883,183 25,785,138 31,180,969 41,147,263
OPERATING EXPENSES:
General and administrative expenses 16,635,341 19,836,138 21,456,973 27,938,566
Depreciation and amortization 786,173 775,698 775,698 775,698
Total expenses 17,421,514 20,611,836 22,232,671 28,714,264
Income (Loss) from operations 4,461,669 5,173,302 8,948,298 12,432,999
OTHER INCOME (EXPENSE):

Interest income 1,023,967 623,593 623,593 623,593
Interest expense (503,714) (608,928) (608,928) (608,928)
Foreign currency transaction gain (loss) 13,298 (4,474) (4,474) (4,474)
Bad debt expense recovery 0 0
Inflation effects (318,539) 0 0 0
Lawsuit settlement (92,124) (248,433) 0 0
Gain on debt forgiveness 0 4,293,000 0 0
Other income/(expense) 1,658,832 (1,174,788) 0 0
Total other income (expense) 1,781,720 2,879,970 10,191 10,191
Net income (loss) 5,887,493 7,348,832 8,958,489 12,443,190
Income (loss) per weighted average 0.04 0.04 0.04 0.06

common share - basic
Income (loss) per weighted average 0.03 0.03 0.04 0.06
common share - fully diluted

Initial Report
October 17th, 2008
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Analyst: Victor Sula, Ph.D.

New Market Technology Inc. 0.07

14860 Montfort Drive, Ste 210 0.06

MARKET DATA Company Introduction

The well-known products of its partners enable NMKT to establish

The Company went public in 2002 by reorganizing into an exist-

The Company has been ranked by Deloitte as one of the fastest-

New Market Technology Inc. (OTC: NMKT) 1

Improving operating margins despite gross margin contraction

Solid product offerings in partnership with leading IT companies

New Market Technology Inc. (OTC: NMKT) 2

Business model capitalizing on IP communication technologies

Aggressive acquisition campaign

Managed services strategy enhances revenue potential

NMKT launched a new strategy earlier in 2008 to

By extending the length of contracts, customer ac-

New Market Technology Inc. (OTC: NMKT) 3

The Company’s business strategy focuses on the following:

1) Maintain a core systems integration base of business;

2) Additionally, Find and acquire timely early-stage technology companies;

New Market Technology Inc. (OTC: NMKT) 4

2) Incrementally invest to refine acquired technologies;

3) Concentrate initial sales efforts on focused pilot opportunities;

4) Expand pilot opportunities as warranted to a level that proves market viability;

New Market Technology Inc. (OTC: NMKT) 5

NewMarket Portfolio of Companies

Country Subsidiary Affiliate

China Crescent Peoples Republic Yes N/A Hardware VAR Offshore

NewMarket Latin America Brazil, Chile, Yes N/A Software Development

NewMarket Broadband TX, U.S. Yes N/A Wi-Fi & Wi-MAX

NewMarket Intellectual TX, U.S. Yes N/A Patented Emerging

Infotel Technologies Ltd. Singapore Yes N/A Software Development

TekVoice FL, U.S. N/A Yes VoIP Commercial Solutions

Source: Company’s presentation

New Market Technology Inc. (OTC: NMKT) 6

NewMarket sales model

Source: Company’s presentation

NewMarket Systems integration subsidiaries:

New Market Technology Inc. (OTC: NMKT) 7

NewMarket Telecommunications subsidiaries and affiliates:

NewMarket Security subsidiaries:

NewMarket Healthcare partners:

Virtual Health Technologies

New Market Technology Inc. (OTC: NMKT) 8

Telecommunication and IT industries

New Market Technology Inc. (OTC: NMKT) 9

Global telecom spending, $ trillion Global IT spending, $ trillion

4.8 1.6 1.5

Sources: http://www.tiaonline.org/media/2004_TIA_Industry_Outlook.pdf, http://www.tiaonline.org/business/media/press_releases/2006/PR06-14.cfm.

New Market Technology Inc. (OTC: NMKT) 10

Worldwide VoIP subscribers (in millions)

New Market Technology Inc. (OTC: NMKT) 11

Worldwide traffic, billions of minutes

TDM and VoIP Traffic Growth

Europe 809.9 12.3 % 337.9 41.7 % 27.2 % 221.5 %

New Market Technology Inc. (OTC: NMKT) 12

New Market Technology Inc. (OTC: NMKT) 13

Source: SEC Filings

NMKT has three reporting segments:

The Services segment provides 89% of total revenues.

2005 2006 2007 2007 vs. 2006

Revenues 50.1 77.6 93.1 19.9%

Gross Margin 37.0% 28.2% 27.7% -0.5%