NewMarket Technology Inc. and Defense Technology Systems Inc. Announce Plan to Combine Homeland Security Operations Under Defense Technology Systems
Friday December 3, 12:01 pm ET
NewMarket CEO Philip Verges to Be Added To Defense Technology Board; NewMarket Shareholders to Receive Defense Technology Stock

DALLAS--(BUSINESS WIRE)--Dec. 3, 2004-- NewMarket Technology Inc. (OTCBB:NMKT - News) and Defense Technology Systems (OTCBB FTS - News) today announced a Letter of Intent to combine their respective Homeland Security Businesses under Defense Technology Systems. Defense Technology will acquire NewMarket Technology's Homeland Security Business in a transaction that includes NewMarket CEO Philip Verges joining the Defense Technology Board of Directors and a distribution of Defense Technology Stock to the Shareholders of NewMarket.
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"Defense Technology has begun to assemble a compelling Homeland Security product line and NewMarket's own Homeland Security operation that will add a number of proprietary technologies that accelerate the overall development of a unique Homeland Security offering," said Philip Verges CEO of NewMarket. "Our Homeland Security business has developed well over the past year with the winning of a number of million dollar defense subcontracts and city government contracts. Within a dedicated publicly-listed Homeland Security operation, we are confident that the success our Homeland Security business has had to date can be enhanced going forward. NewMarket shareholders will benefit directly from this accelerated Homeland Security growth potential by receiving stock in Defense Technology Systems. We anticipate finalizing the transaction and releasing more details on the specific terms of this agreement to the shareholders of both companies in the near future to include 2005 financial forecasts and stock distribution plans."

"NewMarket's proprietary Homeland Security technology is impressive and very complementary to our current product line," said Dan McPhee, CEO of Defense Technology. "This combination is a first important step in a plan to build a comprehensive unique Homeland Security product line through the acquisition of additional proprietary Homeland Security technology companies. Adding Philip Verges to our Board, given his success at NewMarket building proprietary technology portfolios through acquisition, we believe will accelerate our ability to build a robust Homeland Security product line. Additionally, Defense Technology Systems will benefit substantially with the obvious synergy offered with NewMarket's Homeland Security business. We believe Mr. Verges' background and contacts as a graduate of the United States Military Academy at West Point will also benefit Defense Technology."

About NewMarket Technology, Inc. (www.newmarkettechnology.com)