CANADREAM CORPORATION
TSX VENTURE : CDN
TSX VENTURE : CDN.DB
TSX VENTURE : CDN.DB.A

CANADREAM CORPORATION

September 25, 2007 12:36 ET

CanaDream Corporation Reports First Quarter Earnings of $1.9 Million or 12 Cents Per Share

(CALGARY, ALBERTA--(Marketwire - Sept. 25, 2007) - CanaDream Corporation (TSX VENTURE:CDN) (TSX VENTURE:CDN.DB) (TSX VENTURE:CDN.DB.A) today announced financial results for first quarter ended July 31, 2007, as follows:

Revenues of $7.66 million were 15.3% higher than last year, Cash Flow from Operations was $7.07 million ($0.42 per share), up 11.5% from last year and Comprehensive Income was $1.94 million, $0.118 per share, compared to Comprehensive Income of $1.32 million, $0.079 per share last year.

The Company encourages interested parties to access CanaDream Corporation's MD&A on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.



Summarized results for first quarter ended July 31, 2007 are as follows:

2007 2006 % Change
---- ---- --------

Revenue $7,663,590 $6,647,962 15.3%

Revenue Less Direct Expenses $5,114,163 $4,420,755 15.7%

Income Before Tax $2,950,177 $1,974,914 49.4%

Comprehensive Income $1,942,396 $1,317,644 47.4%

Cash Flow from Operations $7,073,186 $6,338,774 11.5%

Basic Earnings per share 11.79 cents 7.93 cents

Fully Diluted Earnings
per share 11.64 cents 7.79 cents
Common Shares outstanding
At July 31 16,601,042 16,606,042
Weighted Average number of
Common Shares outstanding 16,471,939 16,606,042


Investment in Rental Fleet was $23.07 million at July 31, 2007, a decrease of $5.28 million from July 2006 and an increase of $4.95 million from April 30, 2007 year-end levels. The investment in Fleet Inventory Available for Sale was $4.44 million at July 31, 2007, an increase of $2.09 million from July, 2006 and a decrease of $970,000 from April 30, 2007 year-end levels.

Term Debt outstanding on the Company's inventories of Rental Fleet and Fleet Inventory Available for Sale was $21.54 million at July 31, 2007, a decrease of $2.48 million from July 2006 and an increase of $3.84 million compared to April 30, 2007 year-end.

The Company's short-term liquidity position (Cash and cash equivalents plus accounts receivable, minus accounts payable and accrued liabilities) stands at $5.74 million compared to $4.10 million July 2006.

The Company's Future Income Tax liability increased to $1.31 million at July 31 2007, compared to $1.12 million July 2006 and $315,000 at April 30, 2007. As previously noted, the Company does not expect to pay income taxes (other than capital taxes) for the foreseeable future.

It should be noted that the Company's core business, rental of recreational vehicles, is seasonal in nature with the majority of its revenue being earned during the May to October period, its first and second quarters. The majority of the company's direct expenses are incurred in that same period. The Company markets rental units and fleet inventory available for sale on a continuous basis throughout the year, however sales of such units are generally strongest in the spring and early summer. As a result of ongoing interest, amortization and adjustments and selling, general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters may exceed profits earned in the first two quarters of the fiscal year.

The financial data included in this release has been prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for the term cash flow from operations. Cash flow from operations as presented does not have any standardized meaning under Canadian GAAP and therefore, it may not be comparable with the calculation of similar measures for other entities. Cash flow from operations has been presented for information purposes only, and should not be considered an alternative to, or more meaningful than, cash flow from operating activities, as determined in accordance with GAAP.

The Company encourages interested parties to access CanaDream Corporation's MD&A on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system, www.canadasbest.com, and its business-to-consumer on-line Internet reservation system, www.canadream.com, to operate and expand its network of RV rental locations in Canada. CanaDream maintains six Company-operated locations in Calgary, Vancouver, Whitehorse, Toronto, Montreal, and Halifax. The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream's e-commerce systems. CanaDream currently has three associate dealer franchisees in Edmonton Alberta, and Kelowna and Victoria, British Columbia.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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