CrystalTech Lowers Prices on Its Two Highest Priced Dedicated Hosting Plans

Phoenix, AZ, July 11, 2005– CrystalTech Web Hosting Inc, a subsidiary of Newtek Business Services (NASDAQ: NKBS) and a leading provider of Windows-based web hosting, recently lowered the pricing on its two Dual Xeon dedicated hosting plans to provide a more competitive price point for its customers.

CrystalTech’s Dual Xeon plan, formerly $289.95 per month, includes dual 2.4GHz Xeon processors, a 73GB SCSI hard drive, 1 gigabyte of RAM and 750 gigabytes of bandwidth is now priced at $259.95. And its Dual Xeon Raid 5 plan which includes dual 2.4GHz Xeon processors, a 74GB SCSI RAID 5 (3 x 37GB) hard drive, 2 gigabytes of RAM and 1,000 gigabytes of bandwidth has been lowered to $399.95, formerly $429.95 a month.

All of CrystalTech’ full-featured dedicated plans come with Windows 2003 Standard Server, Microsoft DNS, IIS 6.0 and Terminal Services, 2 static IP addresses, 500MB of shared SQL space, the ability to install any software and 24/7 toll-free and email support. CrystalTech also includes $700 of software, including SmarterMail, SmarterStats, SmarterTicket and Serv-U FTP, for free with the purchase of any dedicated plan.

“We are always working to stay competitive in the hosting industry, be it with adding new features or lowering prices,” said Tim Uzzanti, CEO of CrystalTech. “By lowering the pricing on our two highest priced dedicated plans without taking away any functionality or features, we want to show that CrystalTech’s hosting plans still provide the best performance and the most features at a value unsurpassed in the industry today.”

About CrystalTech
Founded in 1992, CrystalTech Web Hosting, Inc. is one of the largest Windows-based web hosting companies in the world, hosting customers in over 100 countries, ranging from small businesses to Fortune 100 corporations. CrystalTech is responsible for hundreds of millions of visits each day on the Internet and uses a state-of-the-art data center that includes redundancy throughout core systems like power, air conditioning, network connectivity, network transportation, as well as a secured environment for their network operations center. CrystalTech is a subsidiary of Newtek Business Services, Inc. (NASDAQ: NKBS), a premier provider of business services and financial products to small and medium-sized businesses. For more information about 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 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 45,000 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;
• CrystalTech Web Hosting: domain registration, hosting and storage;
• Newtek Financial Information Systems: outsourced digital bookkeeping; and
• Newtek Tax Services: tax filing, preparation and advisory services.