Debt Purchaser Velocity Asset Management Reports Huge Increase in Earnings

Velocity Asset Management, Inc. announced revenues and operating results for the quarter ended March 31, 2007.

For the first quarter ended March 31, 2007, the Company reported record net income of $529,808 or $0.01 per diluted share, a 664.1% increase as compared to net income of $69,337 or $0.00 per diluted share in the first quarter of 2006. Operating income increased 221.8% in the first quarter of 2007 to $1,330,002 as compared to operating income of $413,322 for the first quarter of 2006. First quarter 2007 revenues increased 70.8% to $3,170,740 as compared to revenues of $1,856,155 for the first quarter of 2006. After deducting $345,000 in dividend distributions to shareholders of the Company’s Series A convertible preferred stock, net income attributable to common shareholders in the first quarter of 2007 was $184,808.

During the first quarter of 2007, the Company’s wholly-owned Velocity Investments subsidiary posted record gross cash collections from its portfolios of non-performing consumer receivables of $3.68 million, an increase of approximately 154%, as compared to collections of $1.45 million in the three month period ending March 31, 2006. During the first quarter of 2007, Velocity Investments purchased consumer receivable portfolios aggregating approximately $42 million in outstanding principal amount for a purchase price of approximately $1.75 million, bringing the aggregate initial outstanding principal amount of consumer receivables under management as of March 31, 2007 to approximately $395 million, an increase of 153% as compared to approximately $156 million as of March 31, 2006. Velocity Investments is a consumer receivables asset management and liquidation company, which purchases, manages and services portfolios of unsecured consumer receivables.

Commenting on the results, Jack Kleinert, President and CEO, stated, "We are pleased with our operating results for the first quarter of 2007. The substantial percentage increase in the quarter in gross collections and consumer receivables under management represents a trend that we believe will continue for the foreseeable future. The aggregate size of our consumer receivable portfolios under management has continued to expand as the Company has taken advantage of opportunities in the marketplace. We believe that we will continue to see growth in the amount of gross collections and a corresponding acceleration in operating income. The year over year increases in net income, gross revenues and operating income are a result of the Company staying disciplined within our marketplace and successfully executing our business objectives. We intend to continue to expand our operations in fiscal 2007."