Earlier in 2005, NewMarket became the majority shareholder in Defense Technology Systems Inc., a publicly listed Homeland Security company. Defense Technology is a distressed, early development stage company refocused on the Homeland Security market after the collapse of its previous data networking operation. The revitalization of Defense Technology has been slower than anticipated due to conflicts between NewMarket and Defense Technology management. Defense Technology recently announced the appointment of Russell Medina as the new Chief Executive Officer. Mr. Medina brings a wealth of defense industry experience to the Company as a retired career Army Officer and graduate of the United States Military Academy at West Point, NY. While the revitalization of Defense Technology is behind, Defense Technology will be central to NewMarket's Homeland Security strategy.
Independent of NewMarket's overall business, Homeland Security remains an early development stage operation. Defense Technology provides NewMarket with an independent publicly listed company dedicated to the development of a Homeland Security business. Over the Counter listings provide an ideal environment to capitalize early development stage businesses. Overcoming the legacy of Defense Technology's collapsed data networking business will be a first priority. Once unburdened by its prior operational history, Defense Technology will provide NewMarket with an independent platform for rapidly expanding its Homeland Security operations.
Defense Technology operations are being restructured to optimize its own available resources with the resources available from NewMarket. As DCI is primarily a systems integrator and NewMarket is rich with systems integration resources, DCI will be sold. Defense Technology will tap NewMarket for systems integration resources and eliminate the expense of carrying redundant operational overhead. The DCI sale will create a complementary Homeland Security business partner that will broaden Defense Technology's sales resources, as DCI currently markets offerings that will be maintained by Defense Technology and NewMarket.
NewMarket will begin immediately to move its other Homeland Security assets into Defense Technology. Soon, NewMarket's wireless broadband assets will become part of Defense Technology. Defense Technology will also acquire Homeland Security assets independent of NewMarket.This piece is brought to you by the Information Management editorial staff.
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