VHGI Holdings' Medical Office Software sold to a private company

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.