Debt Resolve Acquires Collection Agency First Performance Corp

Debt Resolve, Inc., announced today that it has acquired all of the outstanding shares of First Performance Corporation TM (“FPC”) for a combination of cash and Debt Resolve stock. Founded in 1997, FPC, a well-known accounts receivable management (ARM) agency, has diverse experience across a range of industries, including bankcard, retail, oil cards, mortgage and prime and sub-prime automotive and has earned a reputation as a premier agency providing services to top 10 banks, financial institutions and credit grantors.

James D. Burchetta, Debt Resolve’s Chairman and CEO, stated, “This strategic acquisition will strengthen Debt Resolve’s global online collections strategy and will also provide Debt Resolve with a platform to continue to prove the effectiveness of our online system in reducing collection costs and improving performance. In addition, this acquisition has the potential to contribute significant earnings to Debt Resolve in the next few years.”

Richard Rosa, Debt Resolve’s President and Chief Technology Officer said: “Debt Resolve will integrate its online patented recovery and collection system and other ‘best of breed’ new technologies to the already successful FPC collection platform, including enhanced IVR’s, analytics and new-age messaging to embrace debtors in multiple channels. Our clients, especially other debt buyers and collections agencies, will be invited to review our results and successes and hopefully adopt our strategies. Considering the recent emergence of online collections tools, we expect that much of the software sales channel will be supported by having the data and results that can only be obtained by having a fully functional agency using our patented technologies at the full disposal of our clients and prospects.”

John Tonetti, FPC’s President, will maintain his current position and will be assisted during the transition by Howard Knauer, industry veteran and President of Debt Resolve’s debt-buying subsidiary, DRV Capital, and Jeffrey Bernstein, a Debt Resolve Board member and CEO of Stratagem Portfolio Services, Inc. Mr. Tonetti commented, “We are extremely excited to become part of Debt Resolve’s cutting edge collection technology. Debt Resolve’s online system offers a technological advantage; a lead in to many new clients.”

FPC has established East and West Coast operations in Las Vegas, NV and Ft. Lauderdale, FL, as well as offshore capabilities. The company maintains a staff of approximately 100 collectors between the two locations and has capabilities in place to quickly grow to over 300 collectors. FPC gross revenues in 2006 exceeded $6 million. Once the transaction is finalized, Debt Resolve will make available, upon request, a report that details further insights into FPC and its role in Debt Resolve’s plans for the future.