SAN DIEGO--- Favrille Announces Execution of Non-binding Term Sheet for a Merger Transaction

Favrille, Inc. (BULLETIN BOARD: FVRL) announced today that it has entered into a non-binding term sheet for a reverse merger whereby Favrille would acquire all of the capital stock of a private company, MyMedicalRecords.com, Inc. ("MMR"), in a stock for stock merger that would result in MMR becoming a wholly-owned subsidiary of Favrille. If the proposed transaction is consummated on the terms set forth in the non-binding term sheet, at the effective time of the merger, the existing equity holders of MMR would own approximately 64% of the equity of Favrille on a fully diluted basis. The existing equity holders of Favrille would own approximately 29% of the Company. Approximately 7% of Favrille's equity would be newly issued to certain creditors as settlement for a portion of the outstanding debt obligations. Favrille is in the process of negotiating with its creditors to settle its current liabilities and is required to make disclosures to creditors regarding the potential merger as part of the settlement process. Favrille's progress in settling its creditor claims, consistent with a creditor plan that is outlined in the non-binding term sheet with MMR, is a condition to the signing of a definitive agreement for the proposed merger. It is anticipated that post merger, Favrille's common stock will continue to be traded on the OTC Bulletin Boards.

The proposed merger is subject to completion of mutual diligence and the negotiation of a definitive agreement. Any definitive agreement will contain conditions to closing, including a requirement to complete specified creditor settlements, and the approval of the proposed merger by the MMR stockholders. There can be no assurance that the parties will be able to reach a definitive agreement or consummate the proposed merger on the terms set forth in the non-binding term sheet.