NEW YORK, Oct 21, 2008 (GlobeNewswire 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 that CDS Business Services, Inc. dba Newtek Business Credit has entered into an Amendment to its Credit and Security Agreement with Wells Fargo Bank, National Association, that extends the $10,000,000 facility by three years to February 2012.

"We are pleased at the growth of our receivables business since its inception and rebranding to Newtek Business Credit. The three year extension of our existing Wells Fargo credit facility will enable us to factor receivables and provide financing to small and medium-sized businesses across the nation through our alliance relationships. We expect this business to be profitable for Newtek and a great use of our capital during this difficult economic period. We believe that the ability to factor receivables represents a core tool for small business owners in today's economic environment. We look forward to growing and developing Newtek Business Credit and taking advantage of the business opportunity that we see in the market," 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(tm) 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(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.

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 GlobeNewswire, www.globenewswire.com

SOURCE: Newtek Business Services Inc.

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

(C) Copyright 2008 GlobeNewswire, Inc. All rights reserved.

News Provided by COMTEX