Newtek Announces 2nd Quarter 2000 Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 28, 2000

Newtek Capital, Inc. (AMEX:NKC), a holding company which acquires, operates and develops early stage businesses focused on technology and the Internet, today announced its operating results for the second quarter ended June 30, 2000. For the six months ended June 30, 2000, Newtek reported a net loss of $(2.2 million) as compared to a net loss of $(142,000) in the same period in 1999. For the quarter, the Company reported a net loss of $(1.39 million) compared to a net loss of $(358,000) for the quarter in 1999.

Chairman and CEO Barry Sloane stated: "Our net loss through June 30, 2000 is attributable to our non-cash interest expense of $2.3 million. During the second quarter the Company added significantly to its core investments in our partner companies and we are preparing to raise additional rounds of non-dilutive certified capital in the fourth quarter."

Newtek Capital, Inc. creates non-dilutive capital through the operation of five certified capital companies (CAPCOs) in four states. It operates as a holding company for its CAPCOs and a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of emerging and technologically driven markets. Newtek is currently in the market with two CAPCO private, institutional offerings - $72.7 million in Louisiana and $150 million in New York. Newtek currently has six partner companies that it controls and investments in twelve other companies. On September 19, 2000 the Company completed its acquisition of REXX Environmental Corporation and was listed for trading on the AMEX as of September 20, 2000.

         Selected Unaudited Consolidated Financial Information
                            (In thousands)

                         Three Months Ended         Six Months Ended
                              June 30,                  June 30,
                        ------------------------ ----------------------
                          2000        1999         2000        1999
                          ----        ----         ----        ----

Statement of Operations Data:
    Revenues             $ 668      $   181   $  1,269       $ 618

    Expenses             2,638          896      4,596       1,086
    Net Loss            (1,389)        (358)    (2,201)       (142)

                                     As of
Balance Sheet Data:               June 30, 2000
                      -----------------------------------
    Total Assets               $   59,603
    Total Liabilities              46,991
    Members' Equity                 7,802

The statements in this release may contain forward-looking statements relating to such matters as anticipated future financial performance, business prospects, securities offerings to institutional investors and similar matters. The Private Securities 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 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 on its operating business projects and their impact on revenues and profit margins or additional factors as described in Newtek Capital's previously filed registration statement.