SOURCE: Deer Valley Corporation

January 03, 2008 08:30 ET

Deer Valley Corporation Receives $4.79 Million Contract Increase From State of Mississippi

TAMPA, FL--(Marketwire - January 3, 2008) - Deer Valley Corporation ("Deer Valley" or the "Company") (OTCBB: DVLY) announced today that the scope of the Company's contract with the State of Mississippi has been increased to provide for the production and delivery of an additional 100 two-bedroom cottages. The contract with the State of Mississippi is part of a $280 million federal pilot program designed to test and evaluate future disaster housing. The Company estimates that the increase in scope will generate an additional $4.79 million in revenue which will bring Deer Valley's combined revenues from the pilot phase contract to a total of $19.51 million. The Company has already delivered 200 units out of the aggregate total units ordered of 400 units. The 200 remaining units are scheduled to be delivered prior to March 31, 2008.

"We continue to appreciate the opportunity to serve the State of Mississippi on this experimental program," said Joel Logan, President of the Company's operating subsidiary, Deer Valley Homebuilders, Inc. "The receipt of this contract extension assures the Company of a continued strong production backlog throughout the winter months when our industry often has to throttle back. We are now operating very near capacity and we anticipate our revenue and earnings for the first quarter of 2008 will be ahead of the comparable numbers for the first quarter of 2007. In spite of the continuing difficulties in the housing industry, 2007 has been another successful year for Deer Valley. With our strong backlog and a host of new opportunities on the horizon, we are really excited about our business prospects in 2008."

About Deer Valley

Deer Valley is a growth-oriented manufactured home builder with headquarters in Tampa, Florida and operations in Guin and Sulligent, Alabama. The Company is dedicated to offering high quality homes that are delivered with a sense of warmth, friendliness, and personal pride. The Company is relatively young, but the management team has over 250 years of combined industry experience from various backgrounds including general management, production, sales, customer service, and finance. All of the Company's plants are operating on a five days per week, single shift schedule. The Company has no idle facilities.

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 effect of changing economic conditions, competition within the manufactured home industry, customer acceptance of products, fulfillment of contracts with key customers, and other risks and uncertainties. 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," "seek," "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 undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

The corporate offices of Deer Valley are located at 4218 West Linebaugh Avenue, Tampa, FL 33624.

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