DIVERSIFIED RESOURCES GROUP, INC. FINALIZES $2 MILLION AGREEMENT WITH OCEAN GOLF GROUP

Press Release: Diversified Resources Group, Inc.

August 10, 1999
SARASOTA, FL --DRG, Inc., d/b/a Diversified Resources Group, Inc., (Nasdaq OTC BB:DRGI), a Sarasota, Florida based company, announced today that it has finalized an Agreement with Ocean Golf Group for the sell of the Golf Course and Destination Hotel property tracts within the Company's Falls River Real Estate Development.

The Agreement calls for Ocean Golf Group to construct an 18 Hole Championship Level Public Fee Golf Course, and a 200+ room Luxury Destination Hotel on the property. Under the Agreement, Ocean Golf Group will pay DRGI $2,000,000 for the property.

The Championship Golf Course is being designed by Robbins & Associates, the nationally acclaimed golf course design company out of Cary, North Carolina.

Falls River is currently designed for 1600 units, a commercial center, a neighborhood shopping center, an office complex, an 18 Hole Championship Golf Course, and a 200+ room Luxury Destination Hotel. Homes in the Falls River development will sell for $200,000 to $400,000.

This press release shall not constitute an offer to sell securities under an exemption from registration pursuant to Regulation D, Rule 504 of the Securities and Exchange Commission. Statements regarding the company's expectations about new and exciting products, future financial performance and other forward looking statements are subject to various risks and uncertainties, including, without limitation, demand and acceptance of new and exciting products, technological advances and product obsolescence, competitive factors and the availability of capital to finance growth.

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Contact:

Diversified Resources Group, Inc., Sarasota
Carl Smith, III, 941/923-1949
www.diversified-resources.com