Newtek Business Services, Inc. Launches Newtek Web Hosting

Newtek Business Services, Inc. (Nasdaq: NKBS) http://www.newtekbusinessservices.com), a provider of business services and financial products to the small to medium-sized business market, today announced the launching of a new branded product, Newtek Web Hosting. Newtek Web Hosting is being powered by CrystalTech Web Hosting Inc., one of the largest Microsoft Windows(R) based web hosting companies in the world, and is being launched as Newtek prepares to add web hosting to the varied products and services being marketed to Newtek's strategic alliance partners and through its alternative distribution channels.

Newtek Business Services, Inc. purchased CrystalTech in the fall of 2004.  CrystalTech has since that time doubled its customer count and cash flow. Since its inception, CrystalTech Web Hosting has been recognized as a premier brand for web hosting sales, service and products and has experienced sensational growth through its own cost effective distribution channels.  The launch of Newtek Web Hosting powered by CrystalTech will enable Newtek to grow its distribution and presence in the web hosting and small to medium-sized business markets.  In addition, this will leverage Newtek's strong position with credit unions, investment banks, banks, trade associations, and other alliance partners.

Newtek Web Hosting powered by CrystalTech will offer all of CrystalTech's quality products, including its new Linux based product.  CrystalTech will continue to market and position itself within its own historic distribution and client channels.

Barry Sloane, Chairman and CEO of Newtek Business Services, Inc., said, "The launch of Newtek Web Hosting and the announcement of Newtek Data Storage are key to further establishing Newtek as the premier provider of business services and financial products to the 23 million small to medium-sized business clients across the United States.  As we continue to grow our direct distribution channels through our alliance partners and other to be announced alternative distribution channels, the name Newtek will continue to grow in prominence and brand recognition.  Recently, the Credit Union National Association (CUNA) endorsed Newtek Business Services for both web hosting and data storage services.  The company will shortly announce greater detail of that endorsement by CUNA as well as a launch date for the product offering. Our ability to cross brand, cross market, bundle and sell a suite of services is linked to our success in becoming the 30th largest SBA loan originator by loan volume, the 2nd largest Microsoft Windows(R) only web hosting company, as well as the 45th largest merchant processing company by process volume.  We are excited about our progress, success, and strides in this area."

"CrystalTech Web Hosting will remain as the backbone to all of our technology oriented offerings and will continue to market, sell, and service its entire CrystalTech based products and services through the website (http://www.crystaltech.com) as well as its existing clientele and target market. Newtek Business Services will aim to increase its web-based presence as it is in the process of repositioning its own website to facilitate client order flow and alternative distribution channels," continued Mr. Sloane.

About Newtek Business Services, Inc.

Newtek Business Services, Inc. is a direct distributor of business services and financial products to the small to medium-sized business market.  According to the SBA, there are over 23 million small businesses in the United States which in total represent 99.7% of all employers, generate 60 - 80 percent of all new jobs annually and generate more than 50% of non-farm GDP. Since 1999, Newtek has helped these business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses. Newtek focuses on providing its 60,000 customers with access to financial, management and technological resources that enable them to better grow and compete in today's marketplace.