SOURCE: City Capital Corporation

May 29, 2007 14:30 ET

City Capital Cancels Purchase of Granite Companies for Alleged Misrepresentation

PHILADELPHIA, PA--(Marketwire - May 29, 2007) - City Capital Corporation (OTCBB: CCCN), which earlier this month announced its planned acquisition of the Granite Companies, has determined the financials upon which the company based its decision on to have under-represented the actual debt/asset and debt/income ratios of Granite by almost two thirds. The original contract with the company specified $350,000 of unpaid debts to be assumed by City Capital. Preliminary accounting has determined at least $1,000,062 owed, and several pending lawsuits which had not been openly disclosed during negotiations. Accordingly, City Capital will not proceed with the acquisition. This move in no way affects City Capital's previous plans and actions to expand into the Greater Philadelphia market.

About City Capital

City Capital Corporation (OTCBB: CCCN) is engaged in leveraging investments, holdings and other assets to create self-sufficiency for communities around the country and the world. City Capital currently manages diverse assets and holdings ranging from large scale real estate developments, such as the Kansas City (Missouri) Historic Jazz District, to approximately 8 billion cubic feet of producing West Delta gas reserves and more. The company recently signed a $50,000,000 Credit Facility Agreement with Rochester-based Lucian Group, allowing the company to focus on additional growth industry acquisitions for the company. City Capital, founded in 1984, recently announced a dividend for the first quarter of 2007, the first in its history.

This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, including those described in the Company's annual report on Form 10-K for the year ended December 31, 2006, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements.

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