Newtek News

Newtek Announces Exercise of Over-Allotment Options
Release Date: 7/15/2004

NEW YORK, Jul 15, 2004 /PRNewswire-FirstCall via COMTEX/ -- Newtek Business Services, Inc. (NKBS) (http://www.newtekbusinessservices.com), a provider of business services and financial products to the small to medium-sized business market, today announced that it has completed the sale of an additional 450,000 shares of its common stock pursuant to the exercise of underwriters' over-allotment options which were granted in connection with Newtek's secondary public offering which closed on July 2, 2004. The sale resulted in net proceeds to Newtek of approximately $1.5 million after payment of underwriters' discount and commissions and estimated offering expenses. In addition, three founding and principal shareholders of Newtek sold an additional 450,000 shares, in the aggregate, pursuant to the exercise of such underwriters' over-allotment options. Newtek did not pay any of the offering costs for the selling shareholders.

This offering was underwritten by Roth Capital Partners and Maxim Group LLC. A registration statement relating to these securities was filed with and has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Newtek Business Services, Inc. is a premier provider of business services and financial products to the small to medium-sized business market. Newtek's core brands include:

* Newtek Small Business Finance: small business and U.S. government-
guaranteed lending services;
* Newtek Merchant Solutions: electronic merchant payment processing
solutions;
* Newtek Financial Information Systems: outsourced bookkeeping &
controller services;
* Newtek Tax Services: tax filing, preparation and advisory services;
* Newtek Insurance Agency: customized business insurance (to be
operational in 2004);
* Newtek IT Services: complete information technology solutions; and
* CrystalTech Web Hosting: comprehensive web site services for small and
medium sized businesses.

The statements in this release may contain forward-looking statements relating to such matters as anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's or CrystalTech's actual results to differ materially from the anticipated results expressed in the Company's forward looking statements such as intensified competition and/or operating problems and their impact on revenues and profit margins or additional factors as described in Newtek Business Services' 2003 annual report on Form 10-K and subsequently filed registration statements.

Contacts:
Newtek Business Services
Barry Sloane
Chairman of the Board & CEO
212-356-9500
bsloane@newtekbusinessservices.com

Dave Gentry
Aurelius Consulting Group, Inc.
407-644-4256
dave@aurcg.com