Debt Resolve Reaches Transactional Milestones; Announces Second Quarter Results

    Placements reach over 15 million accounts with face value of over $15
billion; as of July 2007, adding new accounts at the rate of $1 billion (face
value) this quarter.

    WHITE PLAINS, N.Y., August 20 /CNW/ - Debt Resolve, Inc. (AMEX:   DRV), the
only company to offer a patented Internet solution for the collection and
settlement of consumer finance accounts receivable, today announced the
achievement of a transactional milestone. As of July 2007 Debt Resolve is
adding new accounts at the rate of $1 billion (face value) per quarter.

    This steady increase in placements is a result of newly-signed contracts
including a top-5 bank and major collection agencies in the United States. The
company continues to experience a dramatic increase in placements. Debt
Resolve's system has processed over 15 million accounts (including credit
card, auto finance, and healthcare) with a face value of over $15 billion
since its inception in 2003. Clients using the DebtResolve patent-based online
system have a settlement rate of over 50% for debtors who logged in, and
settlements averaging 15% over the clients' floors (called the company's "bump

    James D. Burchetta, Debt Resolve Chairman and CEO, stated: "This is a
significant accomplishment for Debt Resolve as the Company continues to
attract major clients to its patent-based system that results in a
significantly lower collection cost and collects more money than traditional
collection methods alone. Debt Resolve proves that if you leave people alone,
treat them with respect and do not force a number on them, they will do
amazing things, like settle debt on their own and pay more money than
expected. This is the power of the Debt Resolve system."

    Debt Resolve also announced its financial results for the second quarter
of 2007. During the three months ended June 30, 2007, the company:

    --  Added a top-5 U.S. bank as a client in this quarter,

    --  Received placements with a face value of over $2 billion this year
and face value of $1 billion this quarter,

    --  Experienced a 27% increase in the face value of placements compared
with the second quarter of 2006,

    --  Experienced a 26% increase in year over year placements, and

    --  More than doubled its penetration in the legal collection and auto
finance sectors.

    Revenue for the second quarter of 2007 was $875,210, compared to $27,026
in the second quarter of 2006. Net loss for the second quarter of 2007 was
$(5,303,731) compared to a loss of $(1,696,302) in the second quarter of 2006.
The total loss for the three months ended June 30, 2007 includes $1,645,160 in
non-cash stock-based compensation expense and $1,179,080 in a non-cash
goodwill and intangibles impairment charge. On a per share basis, the net loss
of ($0.69) was greater than the net loss of ($0.55) in the second quarter of
2006, primarily due to the charge off of goodwill and intangibles related to
the acquisition of First Performance Corporation. The company's financial
statements for the years ended December 31, 2006 and 2005, and the three
months ended June 30, 2007 and 2006 were prepared on a going concern basis,
which contemplates the continuation of the company as a going concern and the
realization of assets and the satisfaction of liabilities in the normal course
of business. Since the company may not have sufficient cash to fund its
operations for the next twelve months, there exists substantial doubt about
its ability to continue as a going concern. The financial statements do not
include any adjustments that might result from the outcome of this

                     Debt Resolve, Inc. and Subsidiaries
               Condensed Consolidated Statements of Operations
                                June 30, 2007

                                               Three months ended June 30,
                                                    2007          2006
                                               -------------- ------------
    Revenues                                     $   875,210  $    27,026
                                               -------------- ------------

    Costs and expenses:
      Payroll and related expenses                 3,093,006      585,277
      General and administrative expenses          1,822,760      546,916
      Impairment of goodwill and intangibles       1,179,080           --
      Depreciation and amortization expense           67,211       13,849
                                               -------------- ------------

    Total expenses                                 6,162,057    1,146,042
                                               -------------- ------------

    Loss from operations                          (5,286,847)  (1,119,016)
                                               -------------- ------------

    Other (expense) income:
        Net interest (expense) income                (16,884)    (143,246)
        Amortization of deferred debt discount            --     (377,999)
        Amortization of deferred financing
         costs                                            --      (57,541)
        Other income                                      --        1,500
                                               -------------- ------------

    Total other (expense) income                     (16,884)    (577,286)
                                               -------------- ------------
    Net loss                                     $(5,303,731) $(1,696,302)
                                               -------------- ------------

    Per share data:
    Basic and diluted net loss per common
     share                                       $     (0.69) $     (0.55)
                                               -------------- ------------

    Basic and diluted weighted average number
     of common shares outstanding                  7,707,668    3,097,595
                                               -------------- ------------

    Note: The per share data gives effect to the issuance of 336,738 warrants
exercisable at $0.01 per share, in accordance with Statement of Financial
Accounting Standards No. 128.

                     Condensed Consolidated Balance Sheet
                                June 30, 2007


    Current assets:
      Cash and cash equivalents                              $    170,882
      Restricted cash                                             305,336
      Accounts receivable                                         327,532
      Prepaid debt collection payments                            133,651
      Prepaid expenses and other current assets                   101,591
                     Total current assets                       1,038,992

    Fixed assets, net                                             424,590

    Other assets:
      Deposits and other assets                                   149,160
      Deferred acquisition costs                                  758,663
      Purchased accounts receivable                               437,055
      Intangible assets, net                                      270,000
                     Total other assets                         2,039,468
    Total assets                                             $  3,078,460


    Current liabilities:
      Accounts payable                                       $  1,908,276
      Collections payable                                         305,336
      Accrued payroll                                              73,364
      Accrued expenses                                             37,311
      Portfolio loans payable                                     413,780
      Line of credit - related party                              500,000
                     Total current liabilities                  3,238,067

    Stockholders' deficiency:
      Preferred stock, 10,000,000 shares authorized,
        $0.001 par value, none issued and outstanding                   -
      Common stock, 100,000,000 shares authorized, $0.001 par
        value, 7,423,175 shares issued and outstanding              7,423
      Additional paid-in capital                               39,930,856
      Accumulated deficit                                     (40,097,886)
                     Total stockholders' deficiency              (159,607)
      Total liabilities and stockholders' deficiency         $  3,078,460

    About Debt Resolve, Inc.

    Debt Resolve provides lenders, collection agencies, debt buyers and
utilities with a patented online bidding system for the resolution and
settlement of consumer debt and a collections and skip tracing solution that
is effective at every stage of collection and recovery. Through its
subsidiary, DRV Capital, LLC, the company is actively engaged in the purchase
and collections of distressed accounts receivable using its own collections
solutions. Through its subsidiary, First Performance Corporation, the company
is actively engaged in operating a collection agency for the benefit of its
clients, which include banks, finance companies and purchasers of distressed
accounts receivable. The stock of Debt Resolve is traded on the American Stock
Exchange. Debt Resolve is headquartered in White Plains, New York. For more
information, please visit our website at

    Forward-Looking Statements and Disclaimer

    Certain statements in this press release and elsewhere by management of
the company that are neither reported financial results nor other historical
information are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such information includes, without
limitation, the business outlook, assessment of market conditions, anticipated
financial and operating results, strategies, future plans, contingencies and
contemplated transactions of the company. Such forward-looking statements are
not guarantees of future performance and are subject to known and unknown
risks, uncertainties and other factors which may cause or contribute to actual
results of the company's operations, or the performance or achievements of the
company, or industry results, to differ materially from those expressed or
implied by the forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere in this press release,
risks, uncertainties and other factors that could cause or contribute to
actual results differing materially from those expressed or implied by the
forward-looking statements include, but are not limited to, events or
circumstances which affect the ability of Debt Resolve to realize improvements
in operating earnings expected from the acquisition of First Performance and
the contemplated acquisition of Creditors Interchange; competitive pricing for
the company's products and services; fluctuations in demand for the company's
products or services; changes to economic growth in the United States and
international economies; government policies and regulations, including, but
not limited to those affecting the collection of consumer debt; adverse
results in current or future litigation; currency movements; and other risk
factors discussed in the company's Annual Report on Form 10-KSB for the year
ended December 31, 2006, and in other filings made from time to time with the
SEC. Debt Resolve undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
events or otherwise. Investors are advised, however, to consult any further
disclosures made on related subjects in the company's reports filed with the

For further information:

For further information: Press: Debt Resolve, Inc. Ehmonie Hainey,
914-949-5500 x228 or Investors: BPC Financial
Marketing John Baldissera, 800-368-1217

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