Newtek Signs Letter of Intent for 3 Year Loan Facility

Newtek Signs Letter of Intent for 3 Year Loan Facility

NEW YORK, Dec. 1 /PRNewswire/ -- Newtek Business Services, Inc. a provider of business services and financial products to the small to medium-sized business market, today announced that its small business lender, Newtek Small Business Finance, has entered into a letter of intent to obtain a $75 million senior secured revolving line of credit from the commercial finance subsidiary of a major US financial services company. This new facility will be primarily utilized to accumulate and warehouse unguaranteed loan participations under the SBA 7A loan program. The lender intends to underwrite the entire $75 million facility and syndicate a portion to a to-be-determined group of lenders. The proposed facility is for 3 years and anticipated closing date is December 31, 2004. Closing is subject to documentation and SBA review and approval of the facility and its terms and conditions. This facility will replace the existing facility with Deutsche Bank.

Barry Sloane, Chairmen and CEO of Newtek Business Services stated: "We are pleased to report this new opportunity. The flexibility of the pending new facility, which is subject to customary documentation and regulatory approval, is clearly a benefit to our company over our existing financing arrangement. This facility will give the company the room to grow and to build our brand among small to medium sized businesses throughout the United States."

About Newtek Business Services, Inc.

Newtek Business Services, Inc. is a premier provider of business services
and financial products to the small to medium-sized business market.
Newtek's core brands are:

* Newtek Small Business Finance: small business and U.S. government-
guaranteed lending services;

* Newtek Merchant Solutions: electronic merchant payment processing
solutions;

* Newtek Insurance Agency: customized business insurance provided through
Financial Keyosk;

* Newtek IT Services: complete information technology solutions;

* CrystalTech Web Hosting: comprehensive web site services for small and
medium-sized businesses;

* 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, the Company notes that a variety of factors could cause the Company's or CrystalTech's 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' 2003 annual report on Form 10-K and subsequently filed registration statements.

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.

CONTACT: Barry Sloane, Chairman of the Board & CEO of Newtek Business
Services, Inc., +1-212-356-9500, or bsloane@newtekbusinessservices.com; or
Dave Gentry of Aurelius Consulting Group, Inc., +1-407-644-4256, or
dave@aurcg.com, for Newtek Business Services, Inc.

Web site: http://www.newtekbusinessservices.com/


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