Velocity Asset Management Q1 2008 EPS from Continuing Operations Increases 300% to $0.04 on 25% Revenue Rise, Its 13th Consecutive Profitable Quarter

Business Wire, May 23, 2008

Q1 '08 Gross Collections Rise 21%

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 month period ended March 31, 2008, the Company's 13th consecutive profitable quarter. The Company will host an investor conference call to review its results on Wednesday, May 28 at 11:30 a.m. ET. Details below.

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The improvements in Velocity's Q1 results are principally due to significant growth in collections from its portfolio of distressed consumer receivables and a reduction in G&A expenses from Q1 '07 of approximately $280,000 that resulted from a decrease in due diligence expenses.

"Velocity's solid Q1 results highlight our receivable underwriting discipline and the strength and operating leverage provided by our collections model," commented Velocity President and CEO Jack Kleinert. "As our asset portfolio continues to season, 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."

Additionally, the Company announced that it had acquired two portfolios of consumer receivable in April aggregating approximately $9.65 million in initial outstanding amount at a purchase price of approximately $581,000.

To support the growth of its portfolio, on May 6th the Company received net proceeds of approximately $600,000 from an initial closing of its private placement of 800,003 shares at a purchase price of $0.90 and delivered warrants to purchase an aggregate of 200,001 shares of the Company's common stock.

In February, the Company secured a 28% increase in its 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.

Velocity Asset Management is in the process of winding down the discontinued operations of its J. Holder and VOM subsidiaries and expects to complete this process by the end of 2008. These divestitures should free up additional capital while also allowing management to focus exclusively on Velocity Investments, its core, growing consumer receivables 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.

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