Deer Valley Corporation Increases Production Rates to Stabilize Growing Backlog

Deer Valley Corporation ("Deer Valley" or the "Company") today is informing shareholders that the Company's average production rates for the 2nd quarter have risen to 25 floors per week, a 30% increase in comparison to production rates for the 1st quarter of 2010 and 41% in comparison to the second quarter of 2009. As of June 28, 2010, the aggregate value of orders in the Company's backlog has also increased to $3.6 million as compared to $2 million at the end of the 1st Quarter of 2010 and $1.2 million at the end of the 2nd Quarter of 2009.

When asked about the relatively rapid increase in sales activity, Mr. Chet Murphree, Deer Valley's vice-president of marketing, observed, "As our shareholders are well aware, we are living through complex economic times which have brought particular stress to our industry. We believe a number of factors have played a part in contributing to Deer Valley's recent success. First, the Company's new financial arm is providing critical inventory financing for growing number of our independent dealers. Secondly, Deer Valley's finished drywall product line is targeted toward a market segment which appears to have been less affected by the tightening of retail mortgage underwriting criteria. Finally, many buyers in our targeted market niche were able to take advantage of the federal government's recent tax credit program. When taken all together, our company has been blessed to see a significant upturn in our business level even as the nation's credit challenges continue." Mr. Murphree went on to caution, "The expiration of the tax credit program combined with high unemployment rates in our market area can be expected to continue to have a dampening effect on sales throughout the remainder of 2010."

Forward-Looking-Statement: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the likelihood that we will deliver and collect on all sales currently in order backlog. Such forward-looking statements are not guarantees of performance, and Deer Valley's results could differ materially from those contained in such statements. You can generally identify forward-looking statements through words and phrases such as "forecast," "seeking," "pursuing," "anticipate," "believe," "estimate," "expect," "intend," "plan," "budget," "project," "may be," "may continue," "may likely result," and similar expressions. Such forward-looking statements speak only as of the date of this release, and Deer Valley undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

About Deer Valley

Deer Valley is a growth-oriented manufactured home builder with headquarters in Tampa, Florida and operations in Guin, Alabama. The Company is dedicated to offering high quality homes that are delivered with a sense of warmth, friendliness, and personal pride. The Company also owns one idle plant in Sulligent, Alabama.

The corporate offices of Deer Valley Corporation are located at 3111 W. Dr. MLK Blvd., Tampa, Florida 33607

Additional information can be found at: http://www.deervalleycorp.com.