DVL, INC. ANNOUNCES EXCHANGE OF DEBT FOR STOCK
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New York, New York,  January 14, 2002.  DVL, Inc.  ("DVL",  OTC Bulletin  Board:
"DVLN") announced today that effective  December 31, 2001 it had entered into an
agreement with Blackacre Bridge Capital, LLC ("Blackacre") under which Blackacre
exchanged $1,188,278  principal amount of DVL's 10% Redeemable  Promissory Notes
(the  "Notes")  held by it into  4,753,113  shares of DVL's Common  Stock.  This
represents a conversion rate of $.25 per share.

The transaction  will result in an  extraordinary  gain in the fourth quarter of
2001 for DVL of approximately  $500,000. As a result of the exchange,  Blackacre
will now own approximately 25% of DVL's issued and outstanding common stock.

DVL now has  21,313,563  shares of  common  stock  issued  and  outstanding  and
approximately  $2,400,000  principal amount of Notes outstanding.  The Notes are
redeemable in cash, or at the option of DVL, for common stock at a formula based
upon the market price of the DVL common stock.

Alan Casnoff, President of DVL said, "We are delighted with the confidence shown
by  Blackacre  in the  company.  This  exchange  will  significantly  reduce the
potential future dilution to existing  shareholders  resulting from a redemption
of the Notes for stock."


Blackacre is a private real estate investment  management firm based in New York
City.

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 other risks and uncertainties that may be detailed in
the Company's reports filed with the Security and Exchange Commission.

DVL,  Inc.  is a  commercial  finance  and real  estate  company  which owns and
services real estate,  commercial  mortgages,  residual interests in securitized
portfolios and other diversified commercial and consumer finance assets.



For more information please contact Jay Thailer at (212) 350-9900