Exhibit 99.1

Newtek Business Services, Inc. Reports Pretax Profit for the Second Quarter of 2011

First six months Pretax Profit of $970 thousand;

An Improvement of $1.3 million versus First six months of 2010

New York, N.Y. – August 10, 2011 - Newtek Business Services, Inc. (NASDAQ: NEWT) (www.thesba.com) The Small Business Authority, a provider of business services and financial products to the small- and medium-sized business market, reported today its financial results for the quarter ended June 30, 2011.

Overview

Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services, Inc. said, “We are extremely pleased at the progress we are making in our business model and strategic plan despite the difficult effects from a most challenging economic climate. We are becoming known as the premier brand and the authority in the market for independent business owners in need of financial and business services. Our lending operation continues to show improved results and is ahead of the midpoint for our 2011 annual segment guidance. We also finished June 30, 2011 with a servicing portfolio for ourselves and others of $330 million, up from $296 million at December 31, 2010. Our Electronic Payment Processing and Managed Technology Solutions segments are facing major headwinds with competitive, technological and margin compression issues, however, we have made the right adjustments and feel confident that we will meet our annual forecasts in each of the segments. Were it not for two non-recurring charges aggregating $466 thousand in the quarter, we would be tracking higher in our guidance bands, however, with two quarters into 2011, our visibility has increased and enables us to tighten our range on a consolidated basis. The Company is revising its 2011 guidance range to $1.5 million to $4.0 million for pretax income but leaves the midpoint unchanged at $2.7 million. Our annual consolidated pretax profit for the year is forecasted to be up by $1.8 million from $877 thousand the year earlier.”

Second Quarter 2011 Financial Results

For the quarter ended June 30, 2011, the Company had consolidated pretax income of $136 thousand, compared to $514 thousand in the second quarter of 2010, a decrease of $378 thousand resulting from the accrual of a severance payment and the settlement of a contract dispute, both of which were non-recurring in nature. The Company reported a consolidated net loss of $(287) thousand or $(0.01) per share for the quarter, as compared to consolidated net income of $931 thousand, or $0.03 per share for the same period of 2010. The decrease from net income to a net loss year-over-year was due to the non-recurring expenses noted above, as well as a tax provision in 2011, as compared to a tax benefit recorded in 2010.

For the quarter ended June 30, 2011, total consolidated revenues increased $4.3 million, or 15.4%, to $32.3 million compared to $28.0 million in the same quarter of 2010. Total revenue from the three core business service segments (Electronic Payment Processing, Managed Technology Solutions and Small Business Finance) increased to $31.8 million, or by 16.9%, in the second quarter of 2011 compared with $27.2 million for the same quarter of 2010. These three segments represented approximately 98% and 97% of total revenue for 2011 and 2010, respectively.

Revised Outlook for 2011

The Company expects 2011 consolidated revenues of between $122.0 million and $124.8 million. In 2011, it expects pretax income of between $1.5 million and $4.0 million. Annual guidance by segment for revenue, pretax income (loss) and EBITDA will be provided in the conference call presentation today Wednesday, August 10, 2011 at 4:15 p.m. ET and will be available in the ‘Events & Presentation’ section of the Investor Relations portion of Newtek’s website at www.thesba.com.

Outlook for 2012

The Company expects 2012 consolidated revenues of between $121.9 million and $125.0 million and pretax income of between $2.8 million and $6.1 million. Annual guidance by segment for revenue, pretax income (loss), and EBITDA will also be provided in today’s conference call presentation.

Cautionary Statement

2011 and 2012 Guidance information contained in this press release is based on management’s current expectations. These statements are forward-looking and actual results may differ materially. See “Note Regarding Forward-Looking Statements” below.

Use of Non-GAAP Financial Measures

In evaluating its business, Newtek considers and uses EBITDA as a supplemental measure of its operating performance. The Company defines EBITDA as earnings before interest expense, taxes, depreciation and amortization. The Company also presents EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance.

The term EBITDA is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income (loss), operating performance or liquidity presented in accordance with U.S. GAAP. EBITDA has limitations as an analytical tool and, when assessing the Company’s operating performance, investors should not consider EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, EBITDA does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than Newtek, limiting their usefulness as comparative tools. The Company compensates for these limitations by relying primarily on its GAAP results supplemented by EBITDA.

Second Quarter 2011 Conference Call and Webcast

A conference call to discuss these results will be hosted by Barry Sloane, Chairman, President and Chief Executive Officer, and Jennifer Eddelson, Chief Accounting Officer, today, Wednesday, August 10, 2011 at 4:15 p.m. ET. The live conference call can be accessed by dialing (877) 303-6993 (domestic) or (760) 666-3611 (international).

A live audio webcast of the call and the corresponding presentation will be available in the ‘Events & Presentation’ section of the Investor Relations portion of Newtek’s website at http://investor.newtekbusinessservices.com/events.cfm. A replay of the webcast with the corresponding presentation will be available on Newtek’s website shortly following the live presentation. The telephone replay can be accessed by dialing (855) 859-2056 or (404) 537-3406 and entering code 87544378. Both web-based and telephonic replays will be available through August 14, 2011.

About Newtek Business Services, Inc.

Newtek Business Services, Inc., The Small Business Authority, is a direct distributor of a wide range of business services and financial products to the small- and medium-sized business market under the Newtek^TM 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 100,000 business accounts and has positioned the Newtek^TM brand as a one-stop-shop provider of such business services. According to the U.S. Small Business Administration, there are over 27.5 million small businesses in the United States, which in total represent 99.7% of all employer firms.

Newtek Business Services, The Small Business Authority, provides the following products and services:

Note Regarding Forward-Looking Statements

Statements in this press release including statements regarding Newtek’s beliefs, expectations, intentions or strategies for the future, may be “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions which could cause Newtek’s actual results to differ from management’s current expectations are contained in Newtek’s filings with the Securities and Exchange Commission and available through http://www.sec.gov.

For more information, please visit www.thesba.com.

Contact:

Newtek Business Services, Inc.

Barry Sloane

Chairman and CEO

212-356-9500

bsloane@thesba.com

Public Relations Contact:

Rubenstein Public Relations, Inc.

Liz Petrova

212-843-9335

lpetrova@rubensteinpr.com

NEWTEK BUSINESS SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010

(In Thousands, except for Per Share Data)

NEWTEK BUSINESS SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

JUNE 30, 2011 AND DECEMBER 31, 2010

(In Thousands, except for Per Share Data)