SOURCE: George Sharp

April 27, 2007 10:21 ET

Former CEO Wins Judgment Against Victory Energy Corporation

LOS ANGELES, CA -- (MARKET WIRE) -- April 27, 2007 -- Former Victory Capital Holdings Corp., now known as Victory Energy Corporation (OTCBB: VYEY), CEO George Sharp announced today that a California Superior Court Judge has ordered that a judgment in the amount of $207,518.07 be entered against Victory Energy for the benefit of Mr. Sharp. The judgment is a result of the Court's finding that Victory Energy is in material breach of a Settlement Agreement that the Company entered into with Mr. Sharp in settlement of a civil action he filed for Fraud, Negligent Misrepresentation, and Breach of Contract (California Superior Court Dockets: GIC840172 and 05CC10976).

The proposed judgment was delivered to the court today and entry of that judgment is expected to be issued without further delay.

The amount of the judgment was more than the $150,000 that Sharp initially sought in his motion. Victory Energy's counsel, William K. Vogeler of Gruenbeck & Vogeler, attempted to provide the court with an interpretation of the agreement that was clearly contrary to its intent, and asked that an amendment to the agreement, which actually called for a lower award, be invalidated. These tactics seemingly backfired as Mr. Sharp received the amount that was set forth in the original settlement before the amendment.

Mr. Sharp commented, "I would like to thank Mr. Vogeler for asking the court to invalidate amendments to the Settlement Agreement that would have given me a substantially lower judgment. I expect that he will continue to provide his usual good counsel to Victory as I use all means legally available to me to collect on this judgment."

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