LEXINGTON, Ky., Aug. 2 /PRNewswire-FirstCall/ -- VHGI Holdings, Inc. (OTC Bulletin Board: VHGI) announced today that it has sold the assets of its medical practice management subsidiary, Medical Office Software, Inc., to a private company for a purchase price of between $1,200,000 - $1,300,000 and a warrant to purchase 1% of the common stock in the new company. $400,000 of the purchase price has been paid in cash, with the remaining being payable prior to September 30, 2010 pursuant to a promissory note. Further details will be disclosed in a Form 8-K filing with the Securities and Exchange Commission.

"The sale of these assets will allow the company to focus 100% on its main two divisions, VHGI Gold and VHGI Energy," stated Jim Renfro, president of VHGI Holdings. "We are excited about our future as we can utilize the cash from this sale to expand our Gold and Energy businesses," continued Renfro. The balance of the Company's remaining healthcare assets, which basically consist of stock ownership, royalties and receivables, will give the company additional future cash flow.

Immediate goals for the company going forward are now to complete the 43-101 on its Arizona properties and to finalize the additions to the management and operations team. The company will be preparing cash flow projections after it receives the 43-101, and hopes to commence gold production in the fourth quarter of 2010. The company also will be looking for strategic partners for its Gold and Energy divisions as it acquires additional properties or leases.

About VHGI and VHGI Gold

VHGI is a diverse company with assets and interests focusing on opportunities within the Precious Metals Markets and Energy Markets as well as some Healthcare related Assets. VHGI Gold, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining Industry and intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures.

Safe Harbor Statement:

The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.

For Further Information:

Shareholder Relations - Communications 561-515-6035

SOURCE VHGI Holdings, Inc.