DVL, Inc. Reports Results of Operations for the Quarter Ended March 31, 2004 NEW YORK, May 17 /PRNewswire-FirstCall/ -- DVL, Inc. (BULLETIN BOARD: DVLN) announced its operating results for the three month period ended March 31, 2004. DVL's net income for the quarter ended March 31, 2004 was $129,000 ($.00 basic and $.00 diluted net income per share) as compared to $561,000 ($.03 basic and $.01 diluted net income per share) for the quarter ended March 31, 2003. Jay Thailer, Chief Financial Officer of the Company, commented, "The Company generated income without any asset sales or income tax benefit during the quarter." Shareholder's equity increased to $13,794,000 as of March 31, 2004 from $13,665,000 as of December 31, 2003. This press release contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Included are statements regarding the intent, belief and/or current expectations of the Company and its management. The Company's stockholders and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Such risks and uncertainties include, among other things, general economic conditions, and the actual performance of the portfolios of periodic payment receivables and other risks and uncertainties that are discussed herein and in the Company's reports filed with the Securities and Exchange Commission. DVL, Inc. is a commercial finance and real estate company which owns and services real estate, commercial mortgages and other diversified commercial and consumer finance assets. Statistical table follows: DVL, INC. RESULTS OF OPERATIONS (in thousands except share and per share data) Three Months Ended March 31, 2004 2003 Revenue $2,120 $2,404 Net income $129 $561 Basic earnings per share: Net income $.00 $.03 Dilute earnings per share: Net income $.00 $.01 Weighted average shares outstanding - basic 27,738,402 21,713,563 Effect of dilutive securities 27,293,725 32,487,535 Weighted average shares outstanding - diluted 55,032,127 54,201,098 The change in the weighted average number of common shares outstanding -- diluted resulted from 1) a decrease in the average amount of 10% redeemable promissory notes outstanding offset by 2) a decrease in the average closing stock price for the quarter ended March 31, 2004 compared to the quarter ended March 31, 2003. DATASOURCE: DVL, Inc. CONTACT: Jay Thailer of DVL, Inc., +1-212-350-9900

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