Velocity Asset Management Registration Declared Effective for $12 Million Preferred Stock Offering

Velocity Asset Management, Inc., a distressed asset management and liquidation company, announced today that its registration statement for its firm commitment to public offering of its Series A convertible preferred stock had been declared effective by the SEC.

The Company filed to sell 1,000,000 shares of its Series A convertible preferred stock at $10.00 per share, which was subsequently increased under SEC Rule 462(b) by an additional 200,000 shares for total gross proceeds of $12,000,000. The Company also announced today that the American Stock Exchange (“AMEX”) has approved the company’s application for listing its preferred stock.

Such approval is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on the AMEX and may be rescinded if the Company is not in compliance with such standards. The Company expects its preferred shares to begin trading on AMEX on Wednesday, May 17, 2006 under the symbol “JVIP”.

Each share will be convertible, at the option of the holder, into the Company’s common stock at $2.50 per share. The Company may force conversion and also redeem the preferred shares under certain terms and conditions. Anderson & Strudwick, Incorporated, a Richmond, Virginia based investment bank underwrote the firm commitment offering. The transaction is expected to be completed on Thursday, May 18, 2006.

Commenting on the announcement, Jack Kleinert, CEO of Velocity Asset Management, said, “The completion of this preferred offering and the related AMEX listing represents an important milestone for our Company. The Company will now have the resources to benefit from the increased market opportunities that we continue to see in our charged off consumer receivables business. We intend to use the proceeds from the preferred offering to fund the expansion of operations by purchasing additional portfolios of distressed consumer receivables and interests in distressed real property. In addition, an AMEX listing of our securities is an important step in creating greater transparency and liquidity for our shareholders and to elevate our company’s visibility and standing in the financial community.”

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Velocity Asset Management, Inc.

Velocity Asset Management, Inc. is a Delaware corporation that focuses on the purchase, resale, and collection of distressed assets through its three wholly-owned subsidiaries, Velocity Investments, LLC, J. Holder, Inc. and VOM, LLC. Velocity Investments, LLC is a consumer receivables asset management and liquidation company, which purchases, manages and liquidates portfolios of unsecured consumer receivables. J. Holder, Inc. invests in, and maximizes the return on real property sold at sheriff’s foreclosure sales and judgment execution sales, acquires defaulted mortgages and partial interests in real property with the goal of re-selling the property or perfecting the partial interest for resale. VOM, LLC focuses on purchasing, managing and maximizing the return on New Jersey municipal tax liens.