NEW YORK, April 18, 2005 /PRNewswire-FirstCall via COMTEX/ -- Newtek Business Services, Inc. (NKBS) (http://www.newtekbusinessservices.com), a direct distributor to the small to medium-sized business market, today announced the completion of the acquisition by First Bancard Alliance of Alabama of a significant merchant processing portfolio, an affiliate and subsidiary of Newtek Business Services.

Barry Sloane, Chairman and CEO of Newtek Business Services, stated, "We were able to work with First Bancard to acquire 525 new merchant accounts, with the right to acquire 280 additional accounts, and a production office in the Midwest. This office has historically added approximately 15 new clients per month to the portfolio. We intend to focus on helping our affiliated companies, operating nationwide under the name of Newtek Merchant Solutions, to make other portfolio acquisitions at attractive market prices when and as available."

About Newtek Business Services, Inc.

Newtek Business Services, Inc. is a direct distributor 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 45,000 customers with access to financial, management and technological resources that enable them to better grow and compete in today's marketplace. Newtek's products and services include:

-- Newtek Small Business Finance: U.S. government-guaranteed small
business lending services;
-- Newtek Merchant Solutions: electronic merchant payment processing
solutions;
-- Newtek Insurance Agency: commercial and personal insurance;
-- CrystalTech Web Hosting: domain registration, hosting and storage;
-- Newtek Financial Information Systems: outsourced digital bookkeeping;
and
-- Newtek Tax Services: tax filing, preparation and advisory services.


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, Newtek Business Services, Inc. notes that a variety of factors could cause its 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' 2004 annual report on Form 10-K.

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


SOURCE Newtek Business Services, Inc.

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