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NewMarket Technology Inc. has announced executing a letter of intent (LOI) agreement to acquire the majority interest in RedMoon Inc. NewMarket previously acquired a minority interest in RedMoon in 2004. RedMoon and NewMarket have since partnered to make RedMoon a recognized leading provider of wireless mesh networks.

The RedMoon operation will be reorganized into Diamond I Inc. following NewMarket’s previously announced acquisition of the majority interest in Diamond I.

RedMoon has designed, engineered and implemented mesh network solutions, providing high-speed Internet service, security surveillance, automatic meter reading and mobile broadband. In 2006, RedMoon and Chevron Energy Solutions, a Unit of Chevron Corporation signed a contract with the city of Burleson, TX, to construct a wireless broadband network and implement an automatic water meter-reading pilot project.

NewMarket, Diamond I and RedMoon will consolidate Wi-Fi technology assets and proprietary knowledge to build a comprehensive emerging Wi-Fi business that can be leveraged to build revenue into a number of different market segments. The combined NewMarket, Diamond I and RedMoon operations will create a multi-industry Wi-Fi solution provider with a 2007 revenue forecast of $10 million.

The combined Wi-Fi operations will constitute a single consolidated NewMarket subsidiary with a public listing independent of NewMarket’s parent listing. NewMarket and Diamond I are currently reviewing definitive agreements and plan to finalize the intended transaction in the coming weeks. RedMoon and NewMarket have already initiated due diligence efforts and plan to upgrade the current letter of intent to a binding agreement in the near future.