CrystalTech, a leading provider of Microsoft Windows web hosting, now offers virtual private servers powered by Microsoft’s Hyper-V.

Phoenix, Arizona, August 4, 2008 – CrystalTech Web Hosting, the web hosting division of Newtek Technology Services, which is a Newtek Business Services, Inc. company (NASDAQ: NEWT), today announced that Virtual Private Servers (VPS), powered by Microsoft’s hypervisor-based virtualization platform, Hyper-V, are now available for purchase starting at $99.95. CrystalTech is a leading provider of Microsoft® Windows® web hosting.

In July, CrystalTech made Hyper-V powered VPS plans available for pre-order in anticipation of today’s official release, and is now one of the premier hosting providers to offer virtual private servers powered by Microsoft’s Hyper-V. Hyper-V is a key feature of Microsoft Windows Server 2008 and provides a scalable, reliable, and tightly integrated virtualization platform within the Windows environment.

“Our virtual private servers not only offer an ideal environment for businesses and developers who require administrative control and a dedicated-like environment, but one of the most affordable hosting solutions available that features Microsoft’s highly acclaimed new server OS, Windows Server 2008,” said Robert Cichon, president and chief operating officer of Newtek Technology Services. “This is yet another example of our commitment to offering the very best and latest in hosting services to our customers.”

CrystalTech’s virtual private servers feature Windows Server 2008 and include large amounts of hard disk space, bandwidth, and guaranteed memory, with the ability to add additional managed options; including VPS managed services and nightly backups.

“We received a lot of interest after we announced our Hyper-V pre-release last month,” added Cichon. “This is due to the fact that our virtual private servers provide the ideal middle ground environment between shared and dedicated hosting, offering dedicated-like control without the dedicated price.”

To learn more about CrystalTech’s Hyper-V powered VPS solution, visit the CrystalTech website located at http://www.crystaltech.com/VPS.aspx .

About Newtek Technology Services

A wholly owned subsidiary of Newtek Business Services, Inc. (NASDAQ: NEWT), Newtek Technology Services is a premier provider of web technology solutions to the small- to medium-sized business market, providing services to customers in over 100 countries, ranging from small businesses to Fortune 100 corporations.

Newtek’s Technology service lines include:

· CrystalTech Web Hosting, Inc.: An industry leading provider of Microsoft Windows web hosting since 1997, CrystalTech offers shared, dedicated, and VPS hosting plans, along with domain registrations, SSL certificates, and online shopping cart tools.

· Web Services: Customized web design and development services.

· Data Backup, Storage, and Retrieval: Fast, secure, off-site data backup, storage and retrieval solutions designed to meet the specific regulatory and compliance needs of any business.

For more information about Newtek Technology Services and CrystalTech, please contact 877-323-4678, or visit http://www.crystaltech.com .

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- to medium-sized business market under the Newtek™ 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™ brand as a one-stop-shop provider of business services to the small- and medium-sized business market. 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.