Melcor Developments Ltd. (TSX: MRD) Reports Earnings for 2007



    CALGARY, Feb. 22 /CNW/ - Melcor Developments Ltd., an Alberta based
public real estate development company, recorded net earnings of $63,670,000
or $2.05 per share (basic) for the twelve months ended December 31, 2007 on
revenue of $207,024,000 compared with earnings of $57,771,000 or $1.87 per
share (basic) on revenue of $203,402,000 for the same period in 2006. This
represents an increase in earnings of 10.2% and an increase in revenue of 1.8%
over the prior year. Earnings for 2007 were the highest annual earnings in the
history of the Company.
    For the three months ended December 31, 2007, earnings are $25,263,000 or
$0.82 per share (basic) on revenue of $67,693,000 compared to earnings of
$33,576,000 or $1.09 (basic) per share on revenue of $85,891,000 during the
same period in the prior year. While the fourth quarter results have been
impacted by a cooling in the demand for lots by the Company's builder
customers, it does represent the second highest quarterly earnings in the
Company's history. Further, the fourth quarter of 2006 included a material
gain on sale of $11,003,000 which equated to about $.29 per share.

    
    Highlights for the year include:
     -  Growth in assets from $523 million at December 31, 2006 to
        $727 million at December 31, 2007;
     -  The addition of 488,000 square feet of rentable space to the
        Investment Property portfolio;
     -  Acquisition of strategic land holdings totalling 2,135 acres at a
        cost of $89,633,000;
     -  Ongoing development of various assets which will add over 200,000
        square feet of rentable space to the Investment Property portfolio
        over the next eighteen months, including 115,000 square feet being
        completed in the first quarter of 2008;
     -  The payment of dividends of $0.40 per share compared to $0.30 paid in
        2006; and
     -  Successful financing endeavours resulted in the receipt of mortgage
        proceeds of $43,450,000 on investment properties and $54,261,000 on
        land inventory.
    

    Management expects 2008 to be an adjustment year for real estate markets
while supply, demand, pricing and margins of residential land products
rebalance to sustainable levels. While real estate markets in Western Canada
are expected to stay strong for several years, it appears that affordability
and lower net migration will dampen the rate of growth in real estate markets
over levels experienced in the past few years.
    The annual meeting of Melcor Developments Ltd. will be on Friday, April
11, 2008 at 11:00 a.m. MDT at The Fairmont Hotel Macdonald, Wedgwood Room,
10065 - 100 Street, Edmonton, Alberta. The annual report is expected to be
mailed out on or about March 20, 2008.





For further information:

For further information: Business Contact, Ralph B. Young, President &
CEO, Melcor Developments Ltd., general@melcor.ca, Tel: (780) 423-6931, Fax:
(780) 426-1796; Investor Relations, Michael D. Shabada, C.A., Vice-President,
Finance & CFO, Melcor Developments Ltd., general@melcor.ca, Tel: (780)
945-2819, Fax: (780) 426-1796, www.melcor.ca

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MELCOR DEVELOPMENTS LTD.

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