NEW YORK, Jul 1, 2008 (PrimeNewswire via COMTEX News Network) -- Newtek Business Services, Inc. (Nasdaq:NEWT) (www.newtekbusinessservices.com), a provider of business services and financial products to the small- and medium-sized business market, today announced it has been added to the Russell Microcap Index according to the list of newly reconstituted Russell U.S. and global equity indices on June 27, 2008.

Russell indices are widely used as benchmarks for both active and passive investment strategies. Newtek will hold its membership until Russell reconstitutes its indices in June 2009.

"We believe the Company's inclusion in this index will bring Newtek's investment merits to a significantly broader range of investors who rely on the Russell indices as a key part of their investment strategy," said Barry Sloane, Newtek's chairman and chief executive officer.

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- and medium-sized business market under the Newtek brand(tm). 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(tm) brand as a one-stop-shop provider of such business services. 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.

Note Regarding Forward Looking Statements

Statements in this press release including statements regarding Newtek's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions which could cause Newtek's actual results to differ from management's current expectations are contained in Newtek's filings with the Securities and Exchange Commission and available through http://www.sec.gov.

For more information, please visit www.newtekbusinessservices.com.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Newtek Business Services Inc.

Newtek Business Services, Inc.
          Jayne L. Cavuoto, Director, Investor Relations
          212-273-8193
          jcavuoto@newtekbusinessservices.com

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