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

CANADREAM CORPORATION

March 27, 2006 18:23 ET

CORRECTION FROM SOURCE: CanaDream Corporation Reports Third Quarter Earnings of $1.2 Million or 7.2 Cents/Share

CALGARY, ALBERTA--(CCNMatthews - March 27, 2006) - In the release issued on Friday, March 24, 2006 at 12:19 pm ET by CanaDream Corporation (TSX VENTURE:CDN) (TSX VENTURE:CDN.DB) there was an error in the title. The correct title should read "CanaDream Corporation Reports Third Quarter Earnings of $1.2 Million or 7.2 Cents/Share." The complete release follows:

CanaDream Corporation (TSX VENTURE:CDN) (TSX VENTURE:CDN.DB) today announced financial results for the nine months ended January 31, 2006.

Revenues for the nine months were $12.91 million, up 18.3% from last year, Cash Flow from Operations was $4.48 million (26.92 cents per share), up 30.3% from last year and Net Earnings were $1.21 million (7.25 cents per share), up 35.7% from last year.

For the three months ended January 31, 2006 (Q3), Revenues of $107,000 were comparable to last year, Negative Cash Flow from Operations increased by 25.0% and the Net Loss for the period increased by 27.5%.



Summarized results for the nine months ended January 31, 2006, are as
follows:

Jan. 31, 2006 Jan. 31, 2005 %Change
--------------- --------------- ---------
Revenue $ 12,912,244 $ 10,919,130 18.3%
Revenue Less Direct Expenses $ 8,083,251 $ 6,695,776 20.7%
Cash Flow from Operations $ 4,480,850 $ 3,438,185 30.3%
Earnings Before Tax $ 1,857,773 $ 1,394,752 33.2%
Net Earnings $ 1,206,023 $ 889,002 35.7%
Basic Earnings per share 7.25 cents 5.38 cents 34.8%
Fully Diluted E.P.S 7.14 cents 5.35 cents 33.5%
Common Shares outstanding
at End of Quarter 16,672,042 16,658,042
Weighted Average Number of
Common Shares Outstanding 16,644,826 16,791,500

Summarized results for the third quarter, the three months ended
January 31, 2006, are as follows:

Jan. 31, 2006 Jan. 31, 2005 %Change
--------------- --------------- ---------
Revenue $ 106,374 $ 96,511 10.2%
Revenue Less Direct
Expenses $ (298,863) $ (107,475) (196.4%)
Cash Flow from Operations $ (1,348,523) $ (1,078,899) (25.0%)
Loss Before Tax $ (2,275,563) $ (1,760,139) (29.3%)
Net Loss $ (1,475,813) $ (1,157,389) (27.5%)
Basic Loss per share (8.90) cents (6.86) cents (29.7%)
Fully Diluted Loss P.S (8.70) cents (6.84) cents (27.2%)

Weighted Average Number of
Common Shares Outstanding 16,969,203 16,791,500


Increased revenues for the nine months resulted from higher levels of rental fleet, coupled with better utilization and pricing, while revenues for the quarter were not considerably different from last year.

Direct Expenses for the quarter increased by 201,000 (99%) to $405,000 from last year's $204,000, while direct expenses for the nine months increased by $606,000 (14.3%) to $4.83 million compared to last year's $4.22 million, a smaller percentage increase than the percentage increase in revenues. This resulted in an increase in gross margins (Revenue less Direct Expenses) for the nine months to 62.6% from the previous year's 61.3%.

Amortization of Rental Fleet in the quarter increase 67.5% to $653,000 and 43.8% to $1.99 million for the nine months. Amortization of Rental Units Held for Sale decreased by $27,000 to $91,000 for the quarter and increased to $284,000 from $261,000 for the nine month period. Interest on Fleet Debt increased 51% to $281,000 for the three month period ($186,000 last year) compared to a 38.6% increase ($864,000 versus $623,000) for the nine month period. Selling, General & Administrative Expenses increased to $707,000 from $691,000 for the quarter and to $2.51 million from $2.36 million for the nine months. Interest on non-fleet debt was not substantially different from last year's 3 and 9 month amounts. As noted below, the increased Fleet Amortization and Fleet Interest expenses are a direct result of the increased fleet investment and related debt in fiscal 2006 compared to fiscal 2005.

Investment in Rental Fleet was $21.6 million at January 31, 2006, an increase of $8.02 million (59%) over last January and an increase of $6.7 million (45.3%) over year-end levels, while the investment in Rental Units Held for Sale (Ex-Rental units) was $3.54 million at January 31, 2006, a decrease of $2.62 million (42.6%) from last January and a decrease of $508,000 (12.6%) from year-end.

Term Debt outstanding on the Company's inventories of Rental Fleet and Rental Units Held for Sale increased to $17.68 million, some $5.92 million more than last January and $4.9 million more than the $12.8 million at year-end.

The Company's short-term liquidity position (Cash and cash equivalents plus accounts receivable, minus accounts payable and accrued liabilities) stood at $875,000 compared to $306,000 last January.

It should be noted that the Company's core business, rental of recreational vehicles, is seasonal in nature. Accordingly, the majority of its rental revenues and direct expenses occur during the May to October period, the first and second quarters of its fiscal year. The Company markets rental units and units held 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 general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters of the year may exceed profits earned in the first two quarters.

The Company encourages interested parties to access CanaDream Corporation's MD&A for the nine months ended January 31, 2005 on the SEDAR website, www.sedar.com.

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. All references to cash flow from operations in this release are based on cash flow before changes in non-cash working capital.

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 Victoria and Kelowna, British Columbia.

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

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