Velocity Asset Management Reports 2006 Results

FirstCall/Velocity Asset Management, Inc. announced its results of operations for its fiscal year ended December 31, 2006. The Company’s total revenue for the fiscal year ended December 31, 2006 was $10,284,482 as compared to the same period in the prior year of $8,101,744 representing a 26.9% increase.

Operating income increased 123.3% in fiscal 2006 to $3,654,149 as compared to operating income of $1,636,124 for the year ended, December 31, 2005. Total net income for the fiscal year increased to $1,318,690 compared to net income of $473,867 for the same period in the prior year, representing a 178.3% increase. After deducting $851,005 in dividend distributions to shareholders of the Company’s Series A convertible preferred stock, net income attributable to common shareholders was $467,685 ($0.03 per share).

For the fourth quarter ended December 31, 2006, the Company reported that total revenues increased 79.6% to $3,365,906 as compared to revenues of $1,874,308 for the fourth quarter of 2005. Operating income increased 250.9% in the fourth quarter of 2006 to $1,495,957 as compared to operating income of $426,320 for the fourth quarter of 2005. Fourth quarter 2006 net income increased to a record $614,965, as compared to net income of $10,229 in the quarter ended December 31, 2005.

During the year ended December 31, 2006, the Company’s wholly-owned subsidiary, Velocity Investments, posted gross collections from its portfolios of non-performing consumer receivables of approximately $10,778,000, an increase of 99.4% as compared to collections of $5,405,000 in the year ended December 31, 2005. Velocity Investments is a consumer receivables asset management and liquidation company, which purchases, manages and liquidates portfolios of unsecured consumer receivables.

During the 2006 fiscal year, Velocity Investments purchased consumer receivable portfolios aggregating approximately $199 million in initial outstanding principal amount at a purchase price of approximately $15.4 million, bringing the aggregate initial outstanding principal amount of consumer receivables under management as of December 31, 2006 to approximately $353 million, an increase of 129% as compared to approximately $154 million as of December 31, 2005.

Commenting on the results, Jack Kleinert, President and CEO, stated, "We believe the operating results for fiscal 2006 represent a breakout in the ongoing fundamental business and operations at the Company. We anticipate that the substantial increase in net and operating income in the 4th quarter of 2006 is the continuation of a trend that we expect to last for the foreseeable future. We intend to further expand our business in 2007 and expect to see a continued growth in the amount of gross collections with a corresponding acceleration in operating income."