SOURCE: Deer Valley Corporation

December 03, 2007 08:30 ET

Deer Valley Corporation Updates Fourth Quarter Business Outlook by Confirming Stable Earnings Expectations and a Continued Strong Backlog in the Face of the Weak Housing Market

TAMPA, FL--(Marketwire - December 3, 2007) - Deer Valley Corporation ("Deer Valley" or the "Company") (OTCBB: DVLY) today updated its business outlook for the 2007 fourth quarter. The Company expects to generate fourth quarter revenue of approximately $16.6 million. This slight decline from the 2007 third quarter is attributable to the seasonal effect of scheduled production holidays. Pretax earnings for the 2007 fourth quarter are expected to be in line with the 2006 fourth quarter and the 2007 third quarter. The Company's plants in Guin, Alabama, and Sulligent, Alabama, are operating near capacity. The Company's total backlog is currently in excess of $10 million.

"Turmoil in the credit markets is presenting a formidable challenge to the housing industry," said Deer Valley's CEO Charles G. Masters. "Through the outstanding performance of our retail dealer network, an unusually innovative staff, and our industry leading product line Deer Valley has been remarkably successful in countering this well publicized, industry wide challenge. As a result, we continue to report a solid backlog, our plants are full, and we are seeing a number of promising opportunities for possible business combinations. Although Deer Valley is correctly viewed as an integral part of the residential building industry, we have historically not bought land or built houses on speculation. The net result is that neither our strong balance sheet nor our future earning expectations are in jeopardy from any potential devaluation or abandonment costs related to excess finished goods inventory or real estate holdings."

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. Except for scheduled plant holidays, the Company's plants operate 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 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.

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