Velocity Asset Management Announces Increases in July and August Year-Over-Year Collections

Velocity Asset Management, Inc. announced today that its wholly-owned subsidiary, Velocity Investments, LLC, (“Velocity Investments”), a consumer receivables asset management and liquidation company, posted a 92% increase in August year-over-year collections from its portfolios of non-performing consumer receivables in the month ended August 31, 2006.

For the month ended August 2006, Velocity Investments posted record gross collections of $1,025,525, a 92% increase as compared to collections of $533,887 in the month ending August 31, 2005. On August 31, 2006, the aggregate initial outstanding principal amount of Velocity Investments’ consumer receivables under management was approximately $232 million, an increase of 137% as compared to approximately $98 million as of August 31, 2005.

For the month ended July 2006, Velocity Investments posted gross collections of $863,778, a 78% increase as compared to collections of $483,446 in the month ending July 31, 2005. On July 31, 2006, the aggregate initial outstanding principal amount of Velocity Investments’ consumer receivables under management was approximately $204 million, an increase of 127% as compared to approximately $90 million as of July 31, 2005.

The increase in both collections and aggregate initial outstanding principal amount of consumer receivables under management is a result of Velocity Investments’ deployment of the senior credit facility established in January 2005 with Wells Fargo Foothill, Inc., as amended in February 2006.