Today, NuMobile, Inc. released a letter to shareholders from Philip Verges, the CEO and founder of NewMarket Technology, Inc. (NWMT.PK). NuMobile was the first company to join NewMarket’s newly introduced Greenfield Partnership Program. According to the press release, the program is an important aspect of NuMobile’s strategy. The company is scheduled to participate in the NewMarket Virtual Town Hall on January 22, 2010. The shareholder letter previews the Virtual Town Hall agenda and is included below.

Dear Shareholders,

This has been a big year at NuMobile, and in turn, a big year for NewMarket’s Greenfield Program. NuMobile is NewMarket’s inaugural Greenfield partner. As a Greenfield partner, NuMobile launched a new business plan and made substantial progress in executing on that new business plan. The Greenfield Program is assisting NuMobile in building a portfolio of mobile computing and smartphone technologies. This year, NuMobile executed two acquisition agreements and has two more underway. In 2010, NuMobile has the potential to realize over $20 million in revenue. We have seen active trading of the NuMobile stock that has regularly made NuMobile one of the top 100 most actively traded issuers listed on the OTCBB. The OTCBB has over 3,000 listed securities. I am enthusiastic about NuMobile’s potential growth in 2010.

Next month, on January 22nd, NuMobile is scheduled to participate in the NewMarket Virtual Town Hall and subsequently, NuMobile is scheduled to conduct an independent Virtual Town Hall on January 29th. At the NewMarket Town Hall, we will present a review of NuMobile’s participation in 2009 as a Greenfield partner and also present plans in conjunction with the Greenfield Program for 2010. On January 29th, NuMobile is scheduled to conduct an independent review of its 2009 performance and plans for 2010. I encourage shareholders to submit questions by email in advance of both Town Hall meetings.

In 1997, my family, with the help of an angel investor, launched the initiative that has grown into NewMarket Technology and the NewMarket family of companies, to include the launch of the Greenfield Program this year. My family remains very active in the NewMarket family of companies and the Greenfield partner companies. The upcoming Virtual Town Hall will include presentations on the NewMarket family of companies and Greenfield partner companies. A growing and recurring theme to be included in the Town Hall presentations entails the increasing initiative stemming from the NewMarket experience to improve the small business investment markets for both entrepreneurs and investors. We believe this initiative is important to the NewMarket family of companies. We also want to make a contribution to improving the overall global small business opportunity for all entrepreneurs and investors. Again, tune into our January 22nd Virtual Town Hall to learn more. You can find a preview of Town Hall topics in a recent letter to NewMarket shareholders here: http://www.marketwire.com/press-release/Newmarket-Technology-Inc-1095836.html.

Milestone Return on Investment Potential

We believe over-the-counter share price values are determined more by qualitative considerations than quantitative considerations. While national exchange listed share prices frequently reflect business sector consistencies in terms of book value and revenue correlations, over-the-counter share price business sector consistencies and operational performance correlations are hard to find. Share prices of over-the-counter companies often fluctuate dramatically. We believe those fluctuations are driven by qualitative reactions to milestone events. A new contract, for instance, announced by an over-the-counter listed company may be received by the investment community as an indication of the company’s potential long-term success and increased purchasing of that company’s stock may ensue. The single milestone will likely only sustain increased buying for a short period of time and the share price will likely come back down again. Based on our perception of the over-the-counter share price dynamics, we frequently discuss supplementing any long-term investment strategy with a milestone investment strategy that entails buying small positions in anticipation of milestone events and taking profits by selling when a milestone event drives an increased share price. We anticipate NuMobile to have a high potential of delivering milestone returns in addition to maintaining long-term potential.

Long-Term Return on Investment Potential

Long-term return on investments from over-the-counter companies are a higher risk proposition than return on investments in national exchange listed companies. The over-the-counter market has a high number of early stage and start-up companies. Start-up companies frequently do not achieve sustainable financial performance within three years. Many of those companies that do not achieve sustainable financial performance will deliver milestone successes along the way and be able to deliver milestone returns. However, long-term success and a long-term return on investment are more elusive. When an over-the-counter listed company achieves sustainable financial performance and can potentially deliver a long-term return on investment, that return is unlikely to be delivered by simple long-term share price appreciation. It is difficult to predict how many shares an over-the-counter company might issue in raising capital and acquiring resources for its business plan. I believe most over-the-counter companies end up issuing more stock than they anticipate. While a company may reach financial sustainability, so many shares may have been issued along the way, that a sustainable share price reflecting financial performance is unachievable on the over-the-counter markets. Accordingly, the long-term return on investment will likely have to be delivered via some other method. A sale of the operation to a larger company and a corresponding distribution of the proceeds to the selling shareholders could be one way a long-term return on investment is realized. I believe in the long-term potential of NuMobile. However, NuMobile is fighting the statistics of early stage companies that frequently do not achieve sustainable financial performance. NuMobile is also an over-the-counter listed company and I am telling you that I do not believe a long-term return on investment is likely to be realized by simple share price appreciation. I further more do not have a definitive plan as to what alternative means management intends to peruse in the delivery of a long-term return. As 2010 approaches, I hope you will think about our ongoing discussions on milestone investing and carefully consider your long-term investment strategy.

We continue to work with NuMobile through the holidays. As soon as NuMobile has more news on the pending acquisitions and contracts that have been previously discussed, I expect the Company to the release the corresponding news. It is possible NuMobile may achieve a milestone event before the end of the year. We certainly plan to do our best in this regard. Stay tuned and enjoy the holiday season.

Best Regards,
Philip Verges
CEO and Founder of NewMarket Technology, Inc.
Greenfield Partnership Program