Exhibit 99.1
------------
VELOCITY ASSET MANAGEMENT, INC.
48 S. Franklin Turnpike, 3rd Floor o Ramsey, NJ 07446 o 201-760-0663
FOR IMMEDIATE RELEASE
- ---------------------
Company Contact: For Investors:
Jim Mastriani, CFO Robert B. Prag, President
Velocity Asset Management The Del Mar Consulting Group, Inc.
(732) 556-9090 (858) 794-9500
jjm@velocitycollect.com bprag@delmarconsulting.com
----------------------- --------------------------
VELOCITY ASSET MANAGEMENT CLOSES
$12.5 MILLION CREDIT FACILITY WITH WELLS FARGO FOOTHILL
-------------------------------------------------------
- Credit Facility Positions Velocity To Accelerate Its Growth -
RAMSEY, NJ (February 2, 2005) Velocity Asset Management, Inc. (OTCBB: VCYA), a
New Jersey based company that focuses on the purchase, resale, and collection of
distressed assets, announced today that Velocity Investments, LLC, its wholly
owned consumer receivables asset management and liquidation subsidiary, has
closed on a new three-year $12.5 million senior credit facility with Wells Fargo
Foothill, Inc. The facility will be used to finance Velocity Investments'
acquisition of portfolios of non-performing consumer debt.
This is the first substantial credit facility Velocity has secured from a major
financial institution and positions the Company to accelerate its growth.
Commenting on the announcement, Jack Kleinert, CEO of Velocity Asset Management,
stated, "This facility with Wells Fargo Foothill is a great validation of our
business model and management team. It will provide the Company the opportunity
to benefit from scale by acquiring larger non-performing portfolios and take
greater advantage of the enormous operating leverage and earnings power our
business model presents."
Mr. Kleinert continued, "Whereas 2004 was largely a year of building the
infrastructure and business systems at Velocity, we expect substantial revenue
acceleration and meaningful profitably in 2005."
Velocity recently announced it had completed a private placement of equity
securities to institutional and accredited investors resulting in gross proceeds
of $3,363,529 for the Company. Velocity now has in excess of $7,000,000 in
shareholders' equity and expects to file for a listing on a national exchange
during the second calendar quarter of 2005.
**More**
Velocity Asset Management, Inc.
February 2, 2005
Page 2 of 2
About Velocity Asset Management, Inc
- ------------------------------------
Velocity Asset Management, Inc. is a Delaware corporation that focuses on the
purchase, resale, and collection of distressed assets through its three
wholly-owned subsidiaries, Velocity Investments, LLC, J. Holder Inc. and VOM,
LLC. Velocity Investments, LLC is a consumer receivables asset management and
liquidation company, that purchases, manages and liquidates portfolios of
unsecured consumer receivables. J. Holder, Inc. invests in, and maximizes the
return on real property sold at sheriff's foreclosure sales and judgment
execution sales, acquires defaulted mortgages and partial interests in real
property with the goal of re-selling the property or perfecting the partial
interest for resale. VOM, LLC focuses on purchasing, managing and maximizing the
return on New Jersey municipal tax liens.
FORWARD LOOKING STATEMENTS
- --------------------------
This Press Release contains or may contain forward looking statements and
information that are based upon beliefs of and information currently available
to the Company's management as well as estimates and assumptions made by the
Company's management.
When used herein the words ``anticipate", "believe", "estimate", "expect",
"future", "intend", "plan" and similar expressions as they relate to the Company
or the Company's management identify forward looking statements. Such statements
reflect the current view of the Company with respect to future events and are
subject to risks, uncertainties and assumptions relating to the Company's
operations and results of operations and any businesses that may be acquired by
the Company. Should one or more of these risks or uncertainties materialize, or
should the underlying assumptions prove incorrect, actual results may differ
significantly from those anticipated, believed, estimated, intended or planned.
####