DRV Direxion Daily Real Estate Bear 3X Shares

Debt Resolve Creates Alliance With Major Creditors; Schedules Conference For September WHITE PLAINS, N.Y., Aug. 20 /PRNewswire-FirstCall/ -- Debt Resolve, Inc. ("Debt Resolve") (AMEX:DRV) announced today that it has developed a revolutionary consumer driven debt settlement Internet site to be know as iSettleNow. Go to http://www.isettlenow.com/ to see how consumers will be empowered to resolve their debt online and avoid the usual intrusive collection phone calls and letters. The Company is launching iSettleNow.com in response to consumer demand, the increased costs of collection, impaired settlement rates and with the knowledge of a dramatic increase in online banking and general Internet usage. Debt Resolve also announced that it has established an Online Debt Resolution Alliance and will hold a conference for creditors on September 26, 2008 at 9AM at the Cornell Club located at 6 East 44th Street in New York City to discuss the potential of the technology and establish industry standards to maximize the effectiveness of iSettleNow. All inquires should be directed to . With consumer debt dramatically increasing, default rates rising and Internet usage becoming the norm in every facet of life, iSettleNow is the perfect solution for both creditors and consumers. According to the Federal Reserve, Americans carry $13.825 trillion in debt. The average household's credit card debt is $8,565, up almost 15% since 2000. The average college student graduates with over $20,000 in educational debt. Consumers are frustrated with traditional collection methods and are ready to use the Internet to resolve their debt. According to a survey by FiSite Research, 84% of respondents were favorable to the idea of online collection services, 83% preferred an online system, and 78% believed an online would reduce emotional stress. James Burchetta, the Company's Chairman, stated, "The Board of Directors has unanimously approved this dramatic expansion of the Company's business model. It is the consumer that has moved every industry to the Internet. Once consumers choose a channel like iSettleNow, it says to the industry 'change or get out of our way.' We believe iSettleNow will be a prime catalyst to moving collections online. Just as consumers pushed the banking world to online banking, they will also push for online debt resolution. It is natural to want to settle your debts online. The Company's Board has complete faith in management to execute this exciting new online debt resolution tool while continuing to offer products directly to the collection industry. The time is ripe for iSettleNow. There is a perfect storm of more and more debt worldwide and the realization that it will is technology, like iSettleNow, that will lowers costs, improve collections and allow consumers to 'Bid For Financial Freedom(TM).'" Kenneth Montgomery, the Company's Chief Executive Officer, stated, "We have expanded our business model to connect directly with consumers. We will continue to allow creditors, agencies and debt buyers to use our system, but we expect that full adoption of online collections will be consumer driven, just as it was with ATMs and online banking. According to 2006 study by Forrester, by 2011 76% of online households will bank online. In preparation for our launch in early 2009, we are inviting major creditors in every vertical market, credit card, phone, utilities, health care, student loans and mortgages, to a conference to learn more about iSettleNow and form an alliance to fully utilize the iSettleNow technology. We have been meeting with industry leaders and have received overwhelming encouragement and excitement about iSettleNow, the 'ebay of debt.' As a pure Internet model we continue to control expenses and expect to be cash flow positive in the middle of 2009." David Rainey, President and Chief Financial Officer, of the Company, said, "In preparation for the launch of iSettleNow we have drastically reduced are operating costs from $500k per month a year ago to $180k per month. We phased out our off line collection businesses FPC, which incubated iSettleNow, to concentrate on our new consumer site. As we focus on the online consumer model, iSettleNow, we are able to generate revenue without the expenses associated with traditional businesses." Revenue for the second quarter of 2008 was $46,819, compared to $12,507 in the second quarter of 2007. Net loss for the second quarter of 2008 was ($4,238,148) compared to a loss of ($5,303,731) in the second quarter of 2007. The net loss for these months ended June 30, 2008 includes $553,411 in non-cash stock-based compensation expense and $1,631,505 in other non-cash charges. On a per share basis, the net loss of ($0.48) was less than the net loss of ($0.69) in the second quarter of 2007, primarily due to lower non-cash expenses and an increased number of shares outstanding. The Company's financial statements for the years ended December 31, 2007 and 2006, and the three months ended June 30, 2008 and 2007 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 uncertainty. DEBT RESOLVE, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Revenues $46,819 $12,507 $130,997 $33,128 Costs and expenses: General and administrative expenses 2,014,030 2,930,906 3,890,490 4,550,123 Depreciation and amortization expense 14,433 14,380 28,970 28,178 Total expenses 2,028,463 2,945,286 3,919,460 4,578,301 Loss from operations (1,981,644) (2,932,779) (3,788,463) (4,545,173) Other (expense) income: Interest income -- 4,840 190 41,610 Interest expense (33,498) -- (58,692) (70) Interest expense - related parties (34,071) (7,633) (65,008) (7,635) Amortization of deferred debt discount (45,781) -- (547,454) -- Other income (337) -- (338) 10,080 Total other (expense) income (113,687) (2,793) (671,302) 43,985 Loss from continuing operations (2,095,331) (2,935,572) (4,459,765) (4,501,188) Loss from discontinued operations (2,142,817) (2,368,159) (2,650,619) (2,916,683) Net loss $(4,238,148) $(5,303,731) $(7,110,384) $(7,417,871) Net loss per common share: basic and diluted (See Note 2) Continuing operations $(0.24) $(0.38) $(0.51) $(0.58) Discontinued operations $(0.24) $(0.31) $(0.30) $(0.38) Total $(0.48) $(0.69) $(0.81) $(0.96) Basic and diluted weighted average number of common shares outstanding (See Note 2) 8,848,045 7,707,668 8,768,924 7,689,168 DEBT RESOLVE, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets ASSETS June 30, 2008 (Unaudited) December 31, 2007 Current assets: Cash $ 27,489 $ -- Restricted cash 30,191 67,818 Accounts receivable 103,950 84,013 Other receivable 4,712 200,000 Prepaid expenses and other current assets 63,446 108,189 Total current assets 229,788 460,020 Fixed assets, net 128,487 283,095 Other assets: Deposits and other assets 108,780 108,780 Intangible assets, net -- 208,848 Total other assets 108,780 317,628 Total assets $ 467,055 $ 1,060,743 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Accounts payable and accrued liabilities $2,503,794 $1,444,764 Accrued professional fees 1,255,473 1,003,550 Accrued closing costs - FPC 1,364,458 -- Collections payable 28,960 42,606 Short term notes (net of deferred debt discount of $0 and $29,400, respectively) 380,000 70,600 Short term note - related party 142,202 -- Lines of credit - related parties 1,037,121 1,011,000 Total current liabilities 6,712,008 3,572,520 Notes payable (net of deferred debt discount of $211,631 and $70,975, 611,369 254,025 respectively) Total liabilities 7,323,377 3,826,545 Commitments and contingencies Stockholders' deficiency: Preferred stock, 10,000,000 shares authorized, $0.001 par value, none -- -- issued and outstanding Common stock, 100,000,000 shares 8,962 8,474 authorized, $0.001 par value, 8,961,864 and 8,474,363 shares issued and outstanding Additional paid-in capital 45,521,033 42,501,655 Accumulated deficit (52,386,317) (45,275,931) Total stockholders' deficiency (6,856,322) (2,765,802) Total liabilities and stockholders' deficiency $467,055 $1,060,743 About iSettleNow and Debt Resolve, Inc. iSettleNow is a trademarked product of Debt Resolve allowing the consumer to initiate the settlement process by making bids using Debt Resolve's patented online dispute resolution system. Debt Resolve provides lenders, collection agencies, debt buyers and utilities with a patent-based 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. 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 websites at http://www.debtresolve.com/ and http://www.isettlenow.com/. 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; 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, 2007, 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 SEC. DATASOURCE: Debt Resolve, Inc. CONTACT: Ken Montgomery, Debt Resolve, Inc., , mailto: , +1-914-949-5500, ext. 222 Web site: http://www.debtresolve.com/ http://www.isettlenow.com/

Copyright