SOURCE: Deer Valley Corp.

February 10, 2010 08:30 ET

Deer Valley Corporation Moves Aggressively to Improve Shareholder Value

TAMPA, FL--(Marketwire - February 10, 2010) - Deer Valley Corporation, ("Deer Valley" or the "Company") (OTCBB: DVLY), reported today that the Company's Board of Directors has taken several strategic initiatives to improve shareholder value through a series of anti-dilutive securities repurchases. The Company expects the net result of these initiatives to contribute to greater per share earnings which will inherently create greater shareholder value.

In its first action in the series, the Board authorized the repurchase of a block of 2 million shares of the Company's common stock being held in escrow for the benefit of the former owners and current managers of the Company's primary operating subsidiary. The referenced block of shares were issued in December 2007 and were being held in escrow until the scheduled release date, January 18, 2011. The subject shares are being repurchased for $0.35/share (an aggregate of $700,000). The purchase amount will replace the shares in escrow. The escrowed funds, along with additional "escrow shortfall" compensation, will be released to the beneficiaries on or about December 31, 2010. Note: The Company had previously guaranteed that at the time of the escrow release, the total value of the escrow account assets would be equal to or greater than $2 million. Through the current action, the Board has given notice that the Company will exercise its option to satisfy the "shortfall obligation" with cash thus eliminating the potential for any share dilution related to the escrow value guarantee.

The Company's CFO, Mr. Steve Lawler, explained the general effect of the stock repurchase action. "This action will immediately reduce the number of common shares outstanding by approximately ten percent (10%). The "fully diluted share count" will be reduced by approximately eight percent (8%). This action will further benefit shareholders and analysts by significantly reducing the fluctuations in the Company's consolidated quarterly financial statements resulting from the volatility of the "implied PUT derivative" heretofore associated with the escrow value guarantee referred to above."

In a second action, the Board approved the repurchase and cancellation of one entire class of options that granted the holders the right to purchase an aggregate of 700,000 common shares at strike prices evenly divided between $1.09 and $1.14. The entire repurchase was accomplished for the nominal sum of $700.00. The repurchase and cancellation of these options, all of which were formerly held by members of the Board, was another step toward simplifying the Company's capital structure and the elimination of a potential source of future earnings dilution.

In a third action to improve shareholder value in the near term and to further reduce future earnings dilution, the Board authorized a limited share repurchase program allowing for the occasional open market purchase of the Company's common shares to a maximum cumulative expenditure of $500,000.

About Deer Valley

Deer Valley is a growth-oriented manufactured home builder with headquarters in Tampa, Florida and operations in Guin, Alabama. The Company is dedicated to offering high quality homes that are delivered with a sense of warmth, friendliness, and personal pride. The Company also owns one idle plant in Sulligent, Alabama.

The corporate offices of Deer Valley Corporation are located at 3111 W. Dr. MLK Blvd., Tampa, Florida 33607.

Additional information can be found at:

Forward-Looking-Statement: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the likelihood that discussions with third parties referred to in this press release will not progress beyond preliminary negotiations. Such forward-looking statements are not guarantees of performance, and Deer Valley's results could differ materially from those contained in such statements. You can generally identify forward-looking statements through words and phrases such as "forecast," "seeking," "pursuing," "anticipate," "believe," "estimate," "expect," "intend," "plan," "budget," "project," "may be," "may continue," "may likely result," and similar expressions. Such forward-looking statements speak only as of the date of this release, and Deer Valley undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

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