Melcor Developments Ltd., EDMONTON AB (TSX:MRD) Releases Second Quarter Results and Announces Material Transactions in the Third Quarter

www.melcor.ca

EDMONTON, July 26 /CNW/ -

SECOND QUARTER RESULTS
----------------------
Melcor Developments Ltd., an Alberta based real estate development
company achieved net earnings of $7,870,000 or $2.60 per share (basic) on
revenue of $39,688,000 for the six months ended June 30, 2005 compared to net
earnings of $5,655,000 or $1.83 per share (basic) on revenue of $30,980,000
for the same period in 2004. Diluted earnings per share were $2.58 for the six
months ended June 30, 2004 compared to $1.80 during the same period in the
prior year.
Earnings for the three months ending June 30, 2005 were $5,297,000 or
$1.74 per share ($1.73 per share diluted) compared to earnings of $2,909,000
or $0.94 per share ($0.92 per share diluted) during the same period in 2004.
Revenue for the second quarter was $24,095,000 compared to the second quarter
in 2004 when revenues were $15,356,000.
The company paid a semi-annual dividend of $.75 per share on June 30,
2005 to shareholders of record on June 15, 2005. This compares to a semi-
annual dividend of $.60 per share paid in June 30, 2004.

Significant acquisitions and other events during the second quarter
include:

-   On June 30, 2005, the Company acquired a 135,000 square foot office
    building in downtown Edmonton known as the Royal Bank Building for
    $14,700,000. This purchase included an attached parkade with
    320 stalls and an adjacent vacant lot comprising 27,000 square feet.
    This acquisition takes the size of the portfolio over one million
    square feet.

-   In June 2005, the Company acquired 296 acres in Kelowna, British
    Columbia for $15,000,000 which includes the related infrastructure
    for the first stages of residential land development and an 18 hole
    golf course which is under construction.

-   The Company's assets have grown from $282 million at December 31,
    2004 to $329 million at June 30, 2005.

MATERIAL TRANSACTIONS
---------------------
The Company has two contracts to sell a total of 163 acres of industrial
land in north Calgary, for $24,693,000. It is expected that these transactions
will close on or before August 2, 2005. If and when concluded, these
transactions will generate net earnings after taxes of $13,650,000 or
approximately $4.45 per share. These extraordinary transactions were not part
of the Company's 2005 business plan. The Company has retained 148 acres of
adjoining lands.
As real estate markets continue to be very strong, it is expected that
the Company should have record earnings for the year ended December 31, 2005
with the above material transactions.