NewMarket Technology / Corsa Networks Technologies

NewMarket Technology Inc. today announced the acquisition of Corsa Networks Technologies by Xiptel Communications, the company's VoIP subsidiary. Corsa Network Technologies is a five-year-old IP systems integration firm specializing in the construction of secure communication networks. Corsa reported $7.6 million in profitable annual revenue for 2004 and has a conservative forecast of $9 million for 2005. Over the last two years Xiptel has constructed a full service VoIP offering designed for business customers. The service has gone through trials and has been fine tuned with live customers. Recently, Xiptel signed their first major VoIP contract worth over $6 million over three years. Moving a business from a legacy phone system to a VoIP system requires a significant hardware and software integration effort. The Corsa acquisition adds the IP integration capability to Xiptel's existing VoIP service platform. The current combined annualized revenue for the two companies is approximately $10 million.

"Xiptel's managed VoIP business services and unique FreeRange sales program are gaining traction in the small and medium business market, the fastest growing VoIP market segment. The acquisition of Corsa is exciting and a major step for Xiptel," stated Peter Geddis, CEO of Xiptel. "Corsa's compound average annual growth rate has exceeded 35% over the past 4 years. The combination of Xiptel and Corsa gives us a giant leap forward. Both companies serve rapidly expanding, multi-billion dollar markets with proven, leading edge technologies," Geddis continued. "Together, Xiptel and Corsa offer small and large customers advanced business communication features and proven network security technologies based on the highest standards of quality, security, and reliability. This acquisition expands Corsa's sales reach and growth prospects almost overnight, and adds an important group of products and services to Xiptel's service offerings. We give customers more of what they want and need, and save them money at the same time."

Aubrey Brown, CEO of Corsa Network Technologies, said, "As a result of our deal with Xiptel, we're excited to become a part of the rapidly-growing NewMarket family. Xiptel and Corsa are both in high growth markets. I think the combination of our resources and the strategic fit we have designed will be the basis for exciting, compounded annual growth for the combined company."

The acquisition of Corsa Network Technologies will build on NewMarket's Voice over Internet Protocol (VoIP) strategy by combining Xiptel Communications with Corsa in preparation for an eventual spin-off and offering NewMarket shareholders a second stock dividend. The first stock dividend will be shares of Defense Technology Systems to NewMarket shareholders of record on July 1, 2005 with a stock dividend declaration date to be determined in the near future.

(c) BUSINESS WIRE