Velocity Asset Management Q4 '07 EPS Rises 100% to a Record $0.04 Per Share on a 37% Increase in Revenues

Business Wire, March 18, 2008

Full Year EPS Increases 133% to a Record $0.07 Per Share on a 49% Rise in Revenues

Q4 and 2007 Gross Collections Rise 73% and 67%, Respectively

WALL, N.J. -- Velocity Asset Management, Inc. (AMEX: JVI) ("Velocity"), which collects delinquent consumer receivables using an outsourced litigation model, today announced record operating results for the three and twelve-month periods ended December 31, 2007. The Company will host an investor conference call to review its results on Tuesday, March 25th at 11:30 a.m. ET. Details below.

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The improvements in Velocity's Q4 and 2007 results are principally due to significant growth in collections from its portfolio of consumer receivables, offset by modest, managed growth in G&A expense that reflect the Company's outsourcing model.

Velocity's Q4 2007 results also showed strong sequential growth as revenues rose 13% to $4.6 million, compared to $4.1 million in Q3 2007, and Q4 2007 operating income rose 69% to $2.3 million, compared to $1.3 million in Q3 2007. Q4 2007 net income to common shareholders of $667,000 surpassed the $40,000 earned in Q3 2007.

"Velocity's record Q4 and full-year results highlight our receivable underwriting discipline and the strength and operating leverage provided by our collections model," commented Velocity President and CEO Jack Kleinert. "Focusing on disciplined purchases and utilizing our litigation-based collections approach continue to deliver attractive results for our shareholders, even in a challenging consumer economic environment. As our asset portfolio continues to season and grow, we anticipate it will generate increasing levels of cash flow, enabling us to achieve organic revenue growth as well as freeing up capital to purchase new charged-off receivables.

"Pricing of new pools of distressed consumer receivables continues to be under pressure, creating a very favorable trend for us. We believe the pricing reductions should more than offset any anticipated deterioration in collections over the next few years. We are actively investigating alternatives to raise additional capital, which will enable us to take advantage of the current market environment.

"To support the growth of our portfolio, on February 29th we secured a 28% increase in our senior credit facility with Wells Fargo Foothill, Inc. The facility was increased to $22.5 million and its maturity was extended two years to January 31, 2011.

"As we have indicated, our organization is in the process of winding down its J. Holder and VOM subsidiaries and we expect to complete this process by the end of 2008. These divestitures should free up additional capital while also allowing us to focus exclusively on Velocity Investments, our growing collections business."

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About Velocity Asset Management, Inc.

Velocity Asset Management, Inc., through its wholly owned subsidiary, Velocity Investments, LLC, is focused on the purchase and collection of distressed consumer receivables, principally through an outsourced litigation model. The Company purchases consumer receivable portfolios that are of "litigation quality." By focusing on the quality of the portfolio prior to purchase, Velocity aims to diminish its risk and improve its overall collection rate as a percentage of principal balance. For more information, visit www.velocitycollect.com.

This Press Release contains or may contain forward looking statements and information that are based upon beliefs of and information currently available to the Company's management as well as estimates and assumptions made by the Company's management. When used herein the words "anticipate", "believe", "estimate", "expect", "future", "intend", "plan" and similar expressions as they relate to the Company or the Company's management identify forward looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties and assumptions relating to the Company's operations and results of operations and any businesses that may be acquired by the Company, including future collections, increased revenue, increased operating income and consumer receivables under management at the Company's Velocity Investments subsidiary. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, intended or planned.

(Condensed Consolidated Balance Sheets follow)

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(Condensed Consolidated Statements of Income follow)

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