Debt Purchaser Announces the Voluntary Conversion of Certain Preferred Stock

Receivable Acquisition & Management Corporation today announced that it has entered into a privately negotiated and unsolicited transaction with a certain holder of the Company's outstanding 5% convertible preferred stock, $0.01 par value, $10 stated value per share, convertible at $1 per share, in which such holder voluntarily converted such shares of preferred stock into the Company's common stock, $0.01 par value per share.

This transaction closed on November 1, 2006 and resulted in the conversion of 80,000 shares of the Company's preferred stock into 800,000 shares of the Company's common stock and the issuance of 200,000 shares of common stock in exchange for the shareholder foregoing any dividends payable in connection with the preferred stock and early conversion. Max Khan, CEO of RCVA, said that "The conversion of the preferred eliminates an annual dividend expense of $40,000 and gives us additional flexibility in raising capital."

Receivable Acquisition & Management Corporation

Based in New York City, Receivable Acquisition & Management Corporation, specializes in acquisition and liquidation of performing, sub-performing and non-performing receivables. The Company outsources all its collections to specialists in the U.S. and United Kingdom.

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