October 28, 2005 17:25 ET

H.A.L. CONCEPTS LTD.: Year End Results

TORONTO, ONTARIO--(CCNMatthews - Oct. 28, 2005) - H.A.L. CONCEPTS LTD. (TSX VENTURE:HHC) announced today that the net income for the year ended June 30, 2005 was $5.9 million or $0.25 per share as compared to $1.2 million of $0.23 per share for the same period in 2004. The increase in net income in 2005 largely attributable to a gain on the sale of real estate of $6.2 million offset by $0.7 million in deferred preferred share dividend expense. Net income per share reflects the additional shares issued as part of the acquisition late in 2004.

The consolidated financial statements include the Company's wholly-owned subsidiary, which was acquired as the Company's Qualifying Transaction. The consolidated financial statements apply reverse take-over accounting whereby the parent is considered to have been acquired by the subsidiary, therefore the comparative balances are those of the subsidiary.

(in thousands) Year ended Year ended
June 30, 2005 June 30, 2004
Revenue $ 6,846 $ 1,659
Net income $ 5,885 $ 1,167
Net income per share $ 0.25 $ 0.23

As previously announced, the Company used a portion of its cash to redeem Deferred Preferred Shares ("DPS"). During the fourth quarter 180,000 DPS were redeemed for $4.8 million representing face value plus accrued and unpaid dividends. Currently, there are 100,000 DPS with a face value of $2.5 million issued and outstanding. The Company may consider further redemptions of DPS depending on liquidity and capital requirements needed for the Millennium Project.

The Company is a real estate development company which owns and manages the Millennium Project, located in Markham, Ontario.

The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

    Carol Mendoza
    (416) 867-9079
    (416) 867-1961 (FAX)
    402 - 4 King Street West
    Toronto, Ontario M5H 1B6