SOURCE: Deer Valley Corporation

June 07, 2007 08:30 ET

State of Mississippi Awards Deer Valley Contracts Totaling $7,500,000 as Part of a Pilot Production of Two and Three Bedroom Modular "Cottages"

TAMPA, FL--(Marketwire - June 7, 2007) - Deer Valley Corporation ("Deer Valley" or the "Company") (OTCBB: DVLY) is pleased to announce that the Company's plant located in Guin, Alabama has been advised that it has been selected by the State of Mississippi to produce 50 two bedroom and 100 three bedroom cottages as part of a program that is designed to test and evaluate future disaster housing units. Deer Valley is one of four manufactured housing companies selected to participate in this initial phase of a procurement that will ultimately total several thousand units. The award was made based on a bid process related to the State of Mississippi's recent RFP #999-72. The Company will deliver all units to state designated staging areas located near the Gulf Coast. The initial total combined value of the pilot phase contracts awarded to Deer Valley is estimated to be valued at approximately $7,500,000. All units to be produced by the Company under this phase of the program are expected to be delivered before the end of the third quarter, 2007.

Mark Frederick, the Company's Director of Production, outlined the production plan. "The new contract will create an abrupt increase in production obligations for the Company's Guin, Alabama plant. In order to meet this demand without adversely affecting our scheduled deliveries to Deer Valley's dealer network, we intend to shift a greater portion of our standard product line to our plant in Sulligent, Alabama and increase the daily production rate at both plants. We anticipate that these adjustments will permit us to meet all delivery obligations without requiring a capital investment to materially increase our capacity. Our entire staff is looking forward to meeting this challenge, and we appreciate the opportunity to take an active role in the restoration of the Mississippi Gulf Coast area."

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.

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 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 4902 Eisenhower Blvd., Suite 185, Tampa, FL 33634.

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

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