Melcor Developments Ltd., EDMONTON AB (TSE:MRD) Announces Notice of Intention to Make a Normal Course Issuer Bid to September 15, 2006

EDMONTON, Sept. 14 /CNW/ - Melcor Developments Ltd. ("Melcor") announces
that a Notice of Intention to make a Normal Course Issuer Bid has been filed
with and accepted by the Toronto Stock Exchange to purchase up to 152,139 (a
maximum of 5%) of its issued and outstanding Common Shares (presently
3,042,783 Common Shares as at September 13, 2005) in a twelve-month period.
The Issuer Bid will commence on the 16th day of September, 2005 and will
terminate on the earlier of the 15th day of September, 2006 and the date on
which the maximum number of Common Shares are purchased pursuant to the Issuer
Bid. Purchases of Common Shares under the Issuer Bid will be effected through
the facilities of the Toronto Stock Exchange. All Common Shares so purchased
shall be immediately returned to the status of authorized but unissued
capital. The Corporation currently has a Normal Course Issuer Bid in place
through the Toronto Stock Exchange, which expires September 15, 2005. The
Corporation has purchased 124,000 Common Shares at an average price of $51.20
during the course of that Issuer Bid.
The Corporation's board of directors and management believe that the
purchase by the Corporation of its outstanding Common Shares pursuant to the
Normal Course Issuer Bid constitutes a prudent investment of corporate funds
and a sound business decision in relation to alternative investment
opportunities presently available to the Corporation as, in their opinion, the
shares are undervalued when considered against the assets and liabilities of
the Corporation and in light of its current and potential earnings. Presently
Common Shares of Melcor are listed for trading on the Toronto Stock Exchange.

Melcor Developments Ltd. is an Alberta-based corporation that is
primarily engaged in the following activities:

1.  The acquisition, planning, development and marketing of urban
    communities and the subsequent sale of single family, multiple family
    and commercial/industrial lots in Alberta in the metropolitan areas
    of Calgary, Edmonton, Lethbridge and Red Deer and in Arizona;

2.  The ownership, development and management of commercial properties in
    Western Canada and a manufactured home community in Calgary; and

3.  The ownership and management of two championship golf courses in the
    Edmonton area.