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Debt Resolve, Inc. (�Debt Resolve�) (AMEX: DRV) announced today that on March 31, 2008, Debt Resolve, Inc. entered into a Securities Purchase Agreement with Harmonie International, LLC for the private placement of 2,966,102 shares of Debt Resolve�s common stock, par value $.001 per share at a price of $2.36 per share, and a ten-year warrant to purchase up to 3,707,627 shares of Common Stock, at an exercise price of $2.36 per share, resulting in aggregate gross cash proceeds to Debt Resolve of $7,000,000. The transaction closed simultaneously with the execution of the Purchase Agreement, with Harmonie International initiating an international wire transfer process at such time with funding to be completed on or before April 17, 2008. On April 2, 2008, the American Stock Exchange approved for listing the shares of Common Stock issued in the Private Placement. Harmonie International, LLC is a privately owned company participating in investments in a number of industries including the purchase and securitization of consumer and commercial debt. Harmonie International, LLC maintains its principal office in Detroit, MI and has European offices in Marbella, Spain and London, England. Harmonie International was introduced to Debt Resolve by The Resolution Group, Inc., (TRG), of Irvine, CA. This private placement satisfies the obligation of TRG as set forth in an agreement dated December 4, 2007, to provide at least $4.5 million in funding. TRG will continue to work with Debt Resolve in a joint venture for mortgage collections, a note modification program and the referral of clients in the banking and healthcare industries. Debt Resolve also announced its financial results for the 2007 fiscal year by filing Form 10-KSB on April 15, 2008. Highlights of some of Debt Resolve�s results for the year ending December 31, 2007 include: Received placements in client accounts with a face value of over $4 billion Penetrated the European Union by engaging in a distribution agreement with ODC Tools in the Benelux Region Reduced operating expenses by over 40%, in the 4th Quarter 2007, 1st Quarter 2008 and continuing Restructured senior management team with the addition of a new CEO Launched DR Default for Sub-Prime Mortgage Collections Entered into a partnership and distribution relationship with The Resolution Group, in Irvine, CA Received Top 100 Collection Technology Award Added another Top Tier Bank to the client base Added a major client in the United Kingdom Fiscal Year 2007 Earnings Debt Resolve announced that revenues for the Fiscal Year of 2007 were $2,845,823, compared to revenues of $98,042 for the Fiscal Year 2006. Debt Resolve also announced a loss from continuing operations in fiscal year 2007 of ($12,143,832), or ($1.51) per share, compared to a loss of ($21,642,086) or ($5.23) per share for fiscal year 2006. The total loss for fiscal year 2007 includes $2,463,745 of non-cash stock-based compensation, $1,206,335 of non-cash impairment charges and $959.811 in terminated acquisition cost relating to the proposed acquisition of Creditors Interchange. The fiscal year 2007 loss also includes $132,400 of non-cash amortization of deferred debt discount. Net cash used in operating activities was $7,400,000. DEBT RESOLVE, INC. and SUBSIDIARIES Consolidated Statements of Operations � Years Ended December 31, 2007 � 2006 � Revenues $ 2,845,823 � $ 98,042 � � Costs and expenses: � Payroll and related expenses 7,038,243 5,524,059 General and administrative expenses 5,395,224 3,255,055 Terminated acquisition costs 959,811 -- Patent licensing expense � related parties -- 6,828,453 Impairment of goodwill and intangible assets 1,206,335 -- Depreciation and amortization expense � 227,060 � � 51,728 � � Total expenses � 14,826,673 � � 15,659,295 � � Loss from operations � (11,980,850 ) � (15,561,253 ) � Other (expense) income: Interest income 41,946 -- Interest expense (18,042 ) (778,243 ) Interest expense � related party (46,370 ) -- Amortization of deferred debt discount (132,400 ) (4,641,985 ) Amortization of deferred financing costs -- (665,105 ) Other income (expense) � (8,116 ) � 4,500 � Total other expense � (162,982 ) � (6,080,833 ) � Loss from continuing operations (12,143,832 ) (21,642,086 ) � Loss from discontinued operations � (452,085 ) � (53,579 ) � Net loss $ (12,595,917 ) $ (21,695,665 ) � Net loss per common share: basic and diluted (see Note 2) - Continuing operations $ (1.51 ) $ (5.23 ) - Discontinued operations $ (0.06 ) $ (0.01 ) - Total $ (1.57 ) $ (5.24 ) � Weighted average number of common shares outstanding - basic and diluted (see Note 2) � 8,033,348 � � 4,143,866 � DEBT RESOLVE, INC. and SUBSIDIARIES Consolidated Balance Sheet December 31, 2007 � Assets � Current assets: Restricted cash $ 67,818 Accounts receivable 84,013 Other receivable 200,000 Prepaid expenses and other current assets � 108,189 � Total current assets 460,020 � Fixed assets, net 283,095 � Deposits and other assets 108,780 Intangible assets, net � 208,848 � � Total assets $ 1,060,743 � � Liabilities and Stockholders� Deficiency � Current liabilities: Accounts payable and accrued liabilities $ 2,448,314 Collections payable 42,606 Short-term note (net of deferred debt discount of $29,400) 70,600 Lines of credit � related parties � 1,011,000 � Total current liabilities 3,572,520 � Notes payable (net of deferred debt discount of $70,975) � 254,025 � Total liabilities � 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 authorized, $0.001 par value, 8,474,363 issued and outstanding 8,474 Additional paid-in capital 42,501,655 Accumulated deficit � (45,275,931 ) � Total stockholders� deficiency � (2,765,802 ) � Total liabilities and stockholders� deficiency $ 1,060,743 � CEO Ken Montgomery discussed the Debt Resolve 2007 milestones and plans for the remainder of 2008: �While we have been successful in gaining an equity partner with Harmonie International, we are delighted to report that we have experienced significant activity and interest among clients and prospective clients during the first three months of 2008. We continue to pursue prospective clients in the Financial Services space, and have aggressively entered the Healthcare industry with both our traditional collection agency First Performance, as well as our Internet solution Debt Resolve system.� �Following an aggressive strategy to reengineer operations at First Performance, which was completed in late 2007, we have seen a doubling of the cash flow at our agency each month since January, 2008. We have added additional volume from our existing clients, and have placed six new clients through the end of the first quarter.� �Our pipeline of prospective clients has increased by 50% on both platforms since the first of the year, and we project a continuation of this activity throughout the year.� �The Internet business of Debt Resolve continues to show improvement. Our clients are experiencing above average settlement rates with our DR Settle module (called the �bump rate�) as compared to the traditional agency settlement rates, and more than 50% of consumers who log on to our system settle their outstanding accounts. 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.� �Our web application development efforts are continuing to grow. We expect to beta test service enhancements in June of this year, with an announcement of a final release in mid summer.� �Also on the Internet side, we launched a major client in the United Kingdom in early 2008, which has quickly risen to one of our largest revenue producing clients worldwide.� �Debt Resolve aligned with the American Arbitration Association in February 2008 to offer an alternative to the costly expense of arbitrating consumer accounts receivable. We are extremely excited about the prospects for growth of our business given this partnership.� James D. Burchetta, Co-Chairman and Founder of Debt Resolve, commented: "We continued to market our leading online collection technology to multiple sectors. Our customer base grew significantly from the prior year, as we continue to reduce costs and improve the bottom line. Debt Resolve, along with subsidiary First Performance, offers an integrated and seamless solution in the debt collection space.� About Debt Resolve, Inc. 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. Through its subsidiary, First Performance Corporation, Debt Resolve 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 the website at www.debtresolve.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.