NKBS Newtek Business Services

NEW YORK, May 16 /PRNewswire-FirstCall/ -- Newtek Business Services, Inc. (NASDAQ:NKBS) (http://www.newtekbusinessservices.com/), a provider of business services and financial products to the small to medium-sized business market, today announced that it has retained J.H. Cohn, LLP as its independent auditor for its fiscal year 2006. J.H. Cohn will also review all filings with the Securities and Exchange Commission including the first quarter Form 10-Q. J.H. Cohn was established in 1919 and is the largest independent accounting and consulting firm in the New York Metropolitan area as well as the 16th largest accounting and consulting firm in the United States, with offices in New York, New Jersey, California, and the Cayman Islands. They employ some of the country's top consultants on Sarbanes-Oxley Act compliance, ensuring their clients are in full regulatory compliance. The change in auditors for 2006 was not as a result of any disagreement over accounting principles or due to the accounting on any particular transaction. Newtek's former independent registered accountants, PricewaterhouseCoopers LLP, have been dismissed due to costs for services going forward. About Newtek Business Services, Inc. Newtek Business Services, Inc. is a direct distributor of business services and financial products to the small to medium-sized business market. According to the SBA, there are over 23 million small businesses in the United States which in total represent 99.7% of all employers, generate 60 - 80 percent of all new jobs annually and generate more than 50% of non-farm GDP. Since 1999, Newtek has helped these business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses. Newtek focuses on providing its 60,000 customers with access to financial, management and technological resources that enable them to better grow and compete in today's marketplace. Newtek's products and services include: -- Newtek Small Business Finance: U.S. government-guaranteed small business lending services; -- Newtek Merchant Solutions: electronic merchant payment processing solutions; -- Newtek Insurance Agency: commercial and personal insurance; -- Newtek Web Hosting: domain registration, hosting, web design and development; -- Newtek Data Storage Services: data backup, archival and retrieval services; -- 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, Newtek Business Services, Inc. notes that a variety of factors could cause its 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' 2004 annual report on Form 10-K. Contacts: Newtek Business Services Barry Sloane Chairman of the Board & CEO 212-356-9500 DATASOURCE: Newtek Business Services, Inc. CONTACT: Barry Sloane, Chairman of the Board & CEO of Newtek Business Services, +1-212-356-9500, Web site: http://www.newtekbusinessservices.com/

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