Melcor Reports First Quarter Earnings for 2012, Declares Dividend of $0.22 Per Share

Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development company, today reported net income of $5.85 million or $0.19 per share (basic) on revenue of $33.32 million for the three months ended March 31, 2012. These figures represent growth of 48% and 34% over 2011 results for the same period.

Ralph Young, Melcor's President and CEO reported on the quarter: "Development and sales activity are off to a good start in 2012 and our results are in line with the Company's business plan objectives. We are well positioned to have a strong year. The Company has many exciting projects in the planning stage, and we look forward to the development of these communities and property development projects."

Highlights for Q1-2012 include:


--  The Community Development division had a strong quarter with an increase
    in lot sales of 78% over the same period in the last year. The division
    also acquired a 50% interest in 166 acres of land in St. Albert,
    Alberta. 
--  The Investment Properties division continues to purchase assets in the
    US to build its residential property holdings. The division was also
    very active in its leasing department, increasing occupancy from 87% at
    December 31, 2011 to 89% at the end of Q1-2012. 
--  Fair value gains on investment properties of $1.62 million were reported
    compared to $1.06 million in the same quarter last year. Changes in
    capitalization rates on certain office properties and higher leasing
    activity in the Investment Properties division contributed $1.43 million
    to these fair value gains. 
--  The Property Development division has been active in planning and pre-
    leasing in the current quarter, preparing for multiple construction
    projects to be completed by the end of this year. 
--  The Recreational Properties division is pleased to announce that a new
    clubhouse has been constructed at our The Links at Spruce Grove golf
    course, which will be open to the public in May 2012. 
--  Funds from operations (FFO) per share was $0.20 per share in Q1-2012, an
    increase of $0.05 per share, or 33% from the same quarter last year. FFO
    per share adjusts for all non-cash earnings items included in income
    such as fair value adjustments on investment properties and stock based
    compensation expense.

Melcor's Board of Directors declared a semi-annual dividend of $0.22 per share, payable on June 29, 2012 to shareholders of record on June 15, 2012. This dividend is an eligible dividend for Canadian tax purposes.

Melcor is also pleased to announce that Brian Baker has been appointed to President & COO, effective June 1, 2012. Ralph Young will continue in the role of CEO.

About Melcor Developments Ltd.

Melcor is a diversified real estate development and management company with a rich heritage of integrity and innovation in real estate since 1923.

Through four integrated operating divisions, Melcor manages the full life cycle of real estate development: from acquiring raw land, to community planning, to construction and development, to managing leasable office, retail and residential sites. We develop and manage mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses.

Our headquarters are in Edmonton, Alberta, with regional offices throughout Alberta and British Columbia. Our developments span western Canada and the US. We have been trading on the Toronto Stock Exchange since 1968 (TSX:MRD).

Contacts: Melcor Developments Ltd. Business Contact Ralph B. Young President & CEO (780) 423-6931 Melcor Developments Ltd. Investor Relations Jonathan Chia, CA VP Finance & CFO (780) 423-6931

Melcor Developments (TSX:MRD)
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