Melcor Developments Ltd T.MRD

Stellar earnings, revenues for 1st quarter!

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EDMONTON, May 1, 2006 (Canada NewsWire via COMTEX News Network) -- Melcor Developments Ltd., an Alberta based real estate development company recorded net earnings of $7,105,000 or $0.23 per share (basic) on revenue of $34,428,000 for the three months ended March 31, 2006 compared with net earnings of $2,573,000 or $.09 per share (basic) on revenue of $15,593,000 for the same period in 2005. All per share amounts have been restated to reflect the change in the number of shares outstanding caused by the ten-for-one division of common shares which was approved by the shareholders on April 12, 2006. The Company declared a semi-annual dividend of $.15 per share payable on June 30, 2006 to shareholders of record on June 16, 2006. This compares to a semi-annual dividend of $.075 per share paid on June 30, 2005. The increased dividend results from the strength of the Company's financial position, the growth of shareholders equity and rising share values over the past few years. Major significant events during the quarter include: - The current quarter revenue and earnings are significantly higher than in 2005 due to the increase amount of sales in the Community Development division. Earnings can fluctuate on both an annual and quarterly basis due to the cyclical nature of the real estate business and the timing of registration of subdivisions. This quarter benefited with the registration of two phases of residential communities which added 172 lot sales for $11,321,000 in revenue compared to 2005 which saw one plan registration that generated 20 lot sales and revenue of $1,137,000 during the same period. - The Property Development Division has begun construction on 115,000 square feet of office space in north west Calgary, Alberta in a project known as Crowfoot West Business Centre. The Division has also commenced expansion of developments in Leduc and Chestermere. - The Investment Property Division operations continue to improve with the addition of revenue producing assets during 2005 and increased lease rates and occupancies. - The Community Development Division has continued its strong sales and earnings in all company regions as its builder customers continue to acquire inventory for future sales. The current quarter recorded the sale of thirty acres in Tuscon, Arizona which is the last of the Company's developable lands in the United Sates. - The Company remains active in investigating real estate property acquisitions throughout Alberta and British Columbia's Okanagan Valley. During the quarter, Melcor acquired 399 acres of future residential lands adjacent to the City of Red Deer and 5 acres in the City of Kelowna, adjoining the Company's Black Mountain development. Subsequent to the quarter, the company closed on the following purchases: - A 50% joint venture interest in 57 acres of business/industrial lands in the City of Edmonton; and - 89 acres of immediately developable residential lands in the City of Red Deer. SOURCE: Melcor Developments Ltd. Business Contact: Ralph B. Young, President & CEO, Melcor Developments Ltd., [e-mail], Tel: [phone], Fax: [phone]; Investor Relations, Michae D. Shabada, C.A., Vice-President, Finance & CFO, Melcor Developments Ltd., [e-mail], Tel: [phone], Fax: [phone], www.melcor.ca