On April 6, 2017, Newtek closed on its investment in International Professional Marketing, Inc. (“IPM”), which is now a new wholly owned controlled portfolio company of Newtek. IPM, with 2016 sales of $35.9 million, has over 30 years’ experience in the IT consulting space, with over 45 full time employees and a virtual bench of 80 IT subcontractors, that have historically consulted, strategized, designed and implemented technology solutions for enterprise and commercial clients across the United States. The consideration paid by the Company was $11,119,688, which equates to 4.0 times IPM’s 2016 EBITDA, and consisted of the payment at closing of $1 million in restricted shares of Newtek common stock and $8,751,735 in cash, with the $1,367,953 balance to be paid in cash in two equal installments in 2018 and 2019 only if IPM attains specific EBITDA levels for fiscal 2017 and 2018. Newtek will hold IPM’s white labeled consulting, strategy, implementation and design business in a separate wholly owned and controlled portfolio company, named Sidco, LLC. The Company will discuss the new investment during its second quarter earnings call.

The information in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement to the Securities Act of 1933, as amended.

About NEWTEK BUSINESS SERVICES CORP. (NASDAQ:NEWT)

Newtek Business Services Corp. is a non-diversified closed-end management investment company. The Company is engaged in non-bank lending providing a range of business services and financial products under the Newtek brand to the small- and medium-sized business (SMB) market. Its products and services consist of Business Lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), e-commerce, Accounts Receivable Financing, The Secure Gateway, The Newtek Advantage, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll Solutions. The Company offers services along with its controlled portfolio companies. The Company’s portfolio consists of guaranteed and unguaranteed non-affiliate loan investments that are through its small business finance platform.

NEWTEK BUSINESS SERVICES CORP. (NASDAQ:NEWT) Recent Trading Information

NEWTEK BUSINESS SERVICES CORP. (NASDAQ:NEWT) closed its last trading session down -0.22 at 16.23 with 84,028 shares trading hands.