SOURCE: Deer Valley Corporation

October 18, 2007 11:05 ET

Deer Valley Corporation Receives $7,185,000 Contract Extension From State of Mississippi

TAMPA, FL--(Marketwire - October 18, 2007) - Deer Valley Corporation ("Deer Valley" or the "Company") (OTCBB: DVLY) is pleased to announce that the Company has been awarded a contract extension by the State of Mississippi for the production and delivery of an additional 150 two-bedroom cottages. The contract is part of the State of Mississippi's program that is designed to test and evaluate future disaster housing units. As with the initial contract, the Company will deliver all units to state designated staging areas located near the Gulf Coast. Total anticipated proceeds from the contract extension is $7,185,000 which would bring the combined revenues of the pilot phase contracts awarded to Deer Valley to a total of $14,720,000. All of the units to be produced by the Company under the contract extension are scheduled to be delivered prior to March 31, 2007.

Mr. Joel Logan, the president of the Company's operating subsidiary, Deer Valley Homebuilders, Inc., says "The production of the Mississippi Cottages has given us some interesting challenges, but the addition of these units to our production schedule has made a positive contribution to our maintaining a near optimum backlog during an otherwise challenging period for home builders. These contracts have given us a great opportunity to showcase our modular production capability while we continue to support our dealers with uninterrupted deliveries of our proprietary product line. We appreciate the opportunity to continue serve the State of Mississippi on this unique program."

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.

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

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