Newtek Technology Services IO

PHOENIX, Ariz., Aug. 27, 2008 CrystalTech Web Hosting, a part of Newtek Technology Services, which is a Newtek Business Services, Inc. company (NASDAQ: NEWT), today announced that its data center operator and partner, IO Data Centers, has successfully completed the American Institute of Certified Public Accounts (AICPA) Statement on Auditing Standards No. 70 (SAS 70) Type II examination.

The SAS 70 Type II audit is a rigorous third-party evaluation of internal procedures, policies, and controls in accordance to the standards set by the AICPA. The completion of this audit, which was performed by independent service auditor Deloitte & Touche LLP, provides assurances that Newtek Technology Services data center space has the necessary controls in place to effectively manage and protect customer data.

"The completion of the SAS 70 Type II audit at IO Data Centers further illustrates why we chose to locate our data center and network operations at its Scottsdale facility, said Robert Cichon, president and chief operating officer of Newtek Technology Services. Our commitment to providing a safe and secure hosting environment goes beyond the controls we have in place; it is just as critical that our partners and service providers adhere to this commitment as well.

"The completion of the SAS 70 Type II audit at IO Data Centers further illustrates why we chose to locate our data center and network operations at its Scottsdale facility, said Robert Cichon, president and chief operating officer of Newtek Technology Services. Our commitment to providing a safe and secure hosting environment goes beyond the controls we have in place; it is just as critical that our partners and service providers adhere to this commitment as well.

For more information about Newtek Technology Services and its data center operations, please visit http://www.crystaltech.com/ctdatacenter.aspx.

About Newtek Technology Services

A wholly owned subsidiary of Newtek Business Services, Inc. (NASDAQ: NEWT), Newtek Technology Services is a premier provider of web technology solutions to the small- to medium-sized business market, providing services to customers in over 100 countries, ranging from small businesses to Fortune 100 corporations.

Newteks Technology service lines include:

• CrystalTech Web Hosting, Inc.: An industry leading provider of Microsoft Windows web hosting since 1997, CrystalTech offers shared, dedicated, and VPS hosting plans, along with domain registrations, SSL certificates, and online shopping cart tools.
• Web Services: Customized web design and development services.
• Data Backup, Storage, and Retrieval: Fast, secure, off-site data backup, storage and retrieval solutions designed to meet the specific regulatory and compliance needs of any business.

For more information about Newtek Technology Services and CrystalTech, please contact 877-323-4678, or visit http://www.crystaltech.com.

About Newtek Business Services, Inc.

Newtek Business Services, Inc. is a direct distributor of a wide range of business services and financial products to the small- to medium-sized business market under the Newtek" brand. Since 1999, Newtek has helped small- and medium-sized business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses, and to compete effectively in today's marketplace. Newtek provides one or more of its services to over 88,000 business accounts, and has positioned the Newtek" brand as a one-stop-shop provider of business services to the small- and medium-sized business market. According to the U.S. Small Business Administration, there are over 26.8 million small businesses in the United States, which in total represent 99.7 percent of all employer firms.

Newtek's business service lines include:

• Electronic Payment Processing: Electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
• Web Hosting: Full-service web host which offers shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
• Business Lending: Broad array of lending products including SBA 7(a), conventional commercial real estate and SBA 504 loans, business lines of credit, and business credit cards.
• Insurance Services: Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
• Web Design and Development: Customized web design and development services.
• Data Backup, Storage and Retrieval: Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
• Accounts Receivable Financing: Receivable purchasing and financing services.
• Payroll: Complete payroll management and processing services.
• Outsourced Digital Bookkeeping: Bookkeeping and financial information management solutions.
• Tax Preparation and Advisory Services: Expert tax planning and consultation for businesses.
• Business Plan Preparation: Professional business plan development.

For more information, please contact Jayne Cavuoto at 212-273-8193 or visit http://www.newtekbusinessservices.com