Melcor Developments Ltd., (TSX:MRD)

CALGARY, Jan. 15 /CNW/ - In November 2007, the Company announced that it had entered into a conditional agreement with a third party to sell a property known as Crowfoot West Business Centre with closing expected in early 2008 and that this transaction would have a material impact to the Company's 2008 earnings if it closed. The conditions to sell have not been removed by the third party thus terminating the conditional agreement.

The Company intends to retain this property within its Investment Property Division. Crowfoot West Business Centre is 92% leased with offers or conditional deals on most of the remaining space. It is expected to be fully occupied within the first half of 2008.

The Company intends to proceed with the placement of long term fixed rate financing on the building and will assess the stability of real estate and capital markets with the potential of marketing the Centre in the future.

For further information please contact the undersigned.

Business Contact            Investor Relations
Ralph B. Young,             Michael D. Shabada, C.A.,
President & CEO             VP Finance & CFO
Melcor Developments Ltd.    Melcor Developments Ltd.
info@melcor.ca           info@melcor.ca
Tel: (780) 423-6931         Tel: (780) 945-2819