August 07, 2008 14:54 ET

Deer Valley Corporation Reports Record Earnings for the Second Quarter and the First Six Months of 2008

TAMPA, FL--(Marketwire - August 7, 2008) - Deer Valley Corporation ("Deer Valley" or the "Company") (OTCBB: DVLY), today announced record earnings for the 2nd quarter and first six months of 2008. In a Form 10-Q filed today, the Company reported net earnings of $1,003,882 for the 2nd quarter of 2008 and $1,679,017 for the six month period ending June 30, 2008. These net earnings equate to $0.09/common share outstanding or $0.04/fully diluted common share for the 2nd quarter. For the six month period ending June 30, 2008, the Company's reported earnings equate to $0.15/common share outstanding and $0.07/fully diluted common share. Stated in relative terms, the earnings per fully diluted common share increased 100% for the 2nd quarter and 250% for the first six months of 2008 as compared to the same periods in the prior year.

Deer Valley's CEO, Mr. Charles G. Masters, added the following caution: "For the next several months, the well-publicized turmoil in the credit markets is expected to have a negative effect on the home sales that are channeled through our established retail network. Although we have been very successful in developing alternative channels of distribution for our modular products, the Company's revenue and earnings in the second half of 2008 will undoubtedly be negatively affected by the unusually slow sales rate at the retail sales centers. On the other hand, the reduction of capacity by competitors in our market area and the passage of the new federal Housing Relief Bill may result in an offsetting positive effect. With its strong modular backlog, the Company anticipates continued profitable operations throughout the last six months of 2008; however, continuation of the record pace set in the first half of the year is certainly not assured."

Additional financial details for the period ending June 30, 2008 can be found in the Company's Form 10-Q filed with the SEC this date.

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. Having begun operations in March 2004, 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 operate on a four day, forty hour 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 undertakes 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.

Additional information can be found at: http://www.deervalleycorp.com.