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NewMarket Technology Inc. OTCBB: NMKT New Technologies; New Markets 1 st Sales Cost Effective Support Service Portfolio Start-up Investment. Overview. Micro-Cap Investment Model NewMarket Business Model NewMarket Performance NewMarket Forecast Message From The CEO.
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NewMarket Technology Inc. OTCBB: NMKT New Technologies; New Markets 1st Sales Cost Effective Support Service Portfolio Start-up Investment
Overview • Micro-Cap Investment Model • NewMarket Business Model • NewMarket Performance • NewMarket Forecast • Message From The CEO
Micro-Cap High Tech Investment • New Technologies; Triple Digit Returns New technologies need investment and investors want the double and triple digit investment return that can come with a start-up technology investment. Since the 2001 collapse of the High Tech IPO market, New technologies have been starved for investment and investors have not found start-up investment return opportunities. NewMarket Technology has set out to replace the High Tech IPO market with the Micro-Cap Public Market. The technology start-ups are appropriately much smaller organizations with more reasonable start-up goals. The required capital investments are correspondingly smaller. The double and triple digit investment return opportunities exist on these smaller investment increments.
Micro-Cap Strategies • Smaller Investments; More of Them NewMarket is concentrating on Internet Protocol (IP) Communication Technologies. The Company has three subsidiaries each leveraging a core expertise in IP Technology in a different market place – Telecommunications, Healthcare and Homeland Security. NewMarket creates multiple investment and return opportunities around a single technology concentration. • Support Service Economy of Scale Three markets but one support service organization. Installation, integration, ongoing development, maintenance and customer service support all under one roof supporting all three markets. • Full Lifecycle Approach Today’s emerging technologies are tomorrow's legacy technologies. NewMarket will optimize revenue and profit opportunity by not only providing support services for new technologies, but also by supporting those technologies throughout their entire lifecycle.
Micro-Cap Growth • Developing Economies New technologies replace old technologies. Old technologies are usually offered by big, brand name companies. Taking customers away from incumbent brand name companies is difficult regardless of a new technology’s superiority. Developing Economic Regions have less big brand name competition. • Parallel Paths (Proliferating Micro-Caps) Smaller investments and more of them. Within each economic region, a sister Micro-Cap public company will house the technology opportunities for that region. NewMarket creates multiple investment and return opportunities around a single technology concentration. • Spin-Off (Proliferating Micro-Caps) Once a market opportunity has grown to a stage where it is prepared to pursue the next significant stage of growth, NewMarket will spin the specific market opportunity off into a separate Micro-Cap company to support the next stage financing requirement. NewMarket creates multiple investment and return opportunities around a single technology concentration.
NewMarket Business Model • A Micro-Cap Business Model Proliferating Ongoing Micro-Cap Investment Opportunities • Find and acquire timely early stage IP communication technology companies • Incrementally invest to market refine the acquired technology offering • Concentrate initial sales efforts on focused pilot opportunities • Expand pilot to level that proves market viability • Spin technology company out into next stage, stand alone company to support expanded capital opportunity • Maintain the support service economy of scale by retaining support service contract functions at NewMarket Technology • Build service and sales capacity in developing economies overseas to take advantage of reduced labor expense and to sell into fast growing economic regions with less brand name competition than in North America
NewMarket Business Sectors • Telecommunications NewMarket was founded within a Voice over IP (VoIP) company. The assets from the original VoIP company have been combined with those from an acquired up and coming VoIP company named Xiptel. Xiptel is led by recognized industry leader Peter Geddis, former COO of Quest Communications. NewMarket has further acquired WiFi technology assets and continues to pursue additional IP Communication technology assets that will round out a robust Telecom Industry portfolio. • Healthcare NewMarket launched their Healthcare industry sector earlier this year by acquiring Medical Office Software Inc, a 20 year old technology company providing practice management and claims processing IP software and maintenance to 3000 ongoing physician clients. • Homeland Security NewMarket also launched their Homeland Security industry sector this year by acquiring Digital Computer Integration Corporation (DCI). DCI provides custom integrated technology solutions to military and civil government agencies that include a number of proprietary IP Communication homeland security technologies. NewMarket subsequently acquired an up and coming Software Firm with a proprietary RFID technology already trialed for military application.
NewMarket Sales and Support Centers • NewMarket Asia Pacific NewMarket acquired Infotel Technologies Ltd (Pte) in Singapore late last year in a first step toward building foreign sales and support centers in developing economic regions. Infotel is a notable 20 year old communications integrator with clients that include Motorola and Phillips. • NewMarket Latin America NewMarket continued the expansion of their foreign sales and support centers with the acquisition of RKM in Venezuela. RKM is the premier Microsoft partner in Venezuela with clients throughout all of North Latin America.
NewMarket Regional Micro-Cap Partners • NewMarket China NewMarket has entered into a Joint Venture with GaozhiSoft in Shanghai, China. The two companies have already combined resources to win initial sales contracts and are now working to list a Chinese Company on a United States Exchange in order to support a NewMarket business Model in China. • NewMarket Latin America NewMarket acquired a 25% interest in TekVoice Communications. TekVoice is a Hispanic and Latin America VoIP service provider. NewMarket and TekVoice have partnered to expand the TekVoice business model into a Hispanic and Latin America NewMarket business model with an independent public listing on a United States Exchange.
NewMarket Management Philip Verges, CEO President & CEO at VergeTech, Inc., which merged into IPVO. Graduate of the U.S. Military Academy, & served as an Army Captain; specialized in counter terrorism communication technologies. Computer Sciences R&D department of General Motors. Instructor systems engineering methodology & programming at EDS. Dan Scofield, President and COO 15 years in operations & service management for consumer & technology companies, including computer & telecom manufacturing organizations. Led a $260 million revenue business & launched major new product initiatives. Senior management positions with CompUSA & Uniden, where he served as Division president and VP of Operations. Prior to Uniden, he was VP of Professional Services for MicroAge Computer Centers. Peter Geddis, CEO IP Global Voice 25 years experience building growth and profitability for leading companies and smaller firms. CEO and COO experience with a strong entrepreneurial background and strategic knowledge in information systems, IP, optical and local networks. COO of Qwest and its predecessor, SP Telecom. Executive positions include PacTel Spectrum Services, British Telecom, GTE Sprint and New Jersey Bell Telephone. Dr. Larry Wu, Business Development China Chinese State Council, Research Office Senior Advisor to the Premier, Mr. WEN Jiabao. Chinese Embassy, Washington D.C. Secretary for Science and Technology. PH.D in Public Policy on Science and Technology, Renmin University of China. Three books and numerous articles to include U.S. publications in Business Week and Red Herring.
Performance Highlights • Dallas Business Journal - 3rd Fastest Growing Public Company • Dallas Morning News – Top 200 Business in Dallas-Fort Worth • OTCBB Top 20 Most Actively Traded • $15 Million Annualized Revenue Run Rate • 6 Consecutive Profitable Quarters Posted Through 2003 • Over $4 Million in Shareholder Equity • Medical Office Software Acquired - $3 Million in Sales • Digital Computer Integration Corp. Acquired - $5 Million in Sales • RKM Venezuela Acquired - $2 Million in Sales • NETSCO Services Acquired- $3 Million in Forecasted Sales • $30 Million in Revenue Under Announced Pending Acquisitions
Organic Sales Traction Last Six Months Sales Highlights • Awarded $1 Million in New Asia Pacific Contracts • Awarded $2 Million in New Defense Industry Contracts • Awarded State Healthcare Contract Budgeted for $1 Million in Healthcare Industry Services • Awarded $1.1 Million Strategic Sourcing Contract to Support Integration and Roll Out of Client’s Emerging Technology • Awarded $500,000 Strategic Sourcing Contract to Support Integration and Roll Out of Client’s Emerging Technology • Over $5 Million in Potential New Contracts in Sales Pipeline
Recent Quarterly Financials 1st Quarter 2004 Financial Performance • $2.6 Million in Revenue – 443% Growth Over Same Period Last Year -- $300,000 More Than Total $2.3 Million in Revenue for All 2003 • 25% Organic Growth Before Benefit of Acquisitions • $1.4 Million in Cash on Balance Sheet • Company Received $2 Million in December 2003 and Made Substantial 1st Qtr Investments in Operations to Accelerate Growth • In Conjunction with 1st Qtr Investment, Company posted first Quarterly loss after Six Consecutive Profitable Quarters • Company is On track for 500% revenue growth between the 1st and 4th Qtr’s of 2005 with Re-established Profitability
2004 Forecast Highlights • $50 Million Annualize Revenue Run Rate Achieved by Year End • Profitable Annualized Run Rate Re-established by Year End • NewMarket China Listed on US Exchange by Year End • NewMarket Latin America Listed on US Exchange by Year End • Xiptel Spin-Off and Separate Listing by Year End
Investment Outlook OTCBB:NMKT • 60 Million I/O • 52 Week Range: $0.12 - $1.35 • Average Daily Trading Volume: 1.2 Million Shares • Currently $15 Million in Consolidated Annualized Revenues • $30 Million in Revenues Under LOI • $5 Million in Organic Sales Pipeline
Message From CEO “NewMarket is establishing the standard for the next generation of technology innovation. We have chosen to be trend setters. We know this is not an easy path. The financial market that technology innovation so depends on, is resistant to change. Investment professionals typically look for historical trends and have difficulty assessing emerging trends. The naysayers are far more vocal than the watch-and-see optimists. Such criticism tests both the resolve of management and shareholders alike. As a Micro-Cap company we have started on the OTCBB. In addition to enduring the unique challenges of a trend setter, we also endure those challenges common to the OTCBB. While the OTCBB is an ideal exchange for a Micro-Cap strategy, trading activity increases are regularly rewarded with hedging abuse. The plan for NewMarket is long-term. For the last two years, we have concentrated on building the NewMarket platform. The investment return opportunities have not yet begun in earnest. Hedging is a short sighted endeavor and trading abuse is even more short sighted. The NewMarket business foundation is well underway. Management optimism and resolve are resilient. We are more confident then ever in the plan. We are committed to establishing the new standard for the next generation of technology innovation. We know the path is not easy. We enthusiastically welcome your interest and support in the NewMarket vision.” Philip M. Verges CEO, NewMarket Technology