Parkbridge announces fiscal 2006 third quarter results

Parkbridge Lifestyle Communities Inc. ("Parkbridge" or the "Corporation"), (TSX: PRK and PRK.A) today announced results for its third quarter and the nine months ended June 30, 2006.

The Corporation reported that income from property operations increased 40% to $16.8 million for the nine months ended June 30, 2006, as compared to $12.0 million during the same period in 2005. Funds from operations ("FFO") for the nine months ended June 30, 2006 increased 20% to $9.2 million ($0.17 per share) as compared to $7.7 million ($0.15 per share) for the same period a year earlier. Net income for the nine months ended June 30, 2006 prior to the cost of defeasing an existing mortgage was $4.2 million. The cost of defeasing the mortgage resulted in a one-time charge of $2.1 million in the first quarter of 2006 reducing net income for the nine months to $2.1 million ($0.03 per share), as compared to net income of $2.2 million ($0.04 per share) for the same period a year earlier.

Income from property operations for the three months ended June 30, 2006 increased to $7.1 million, from $5.7 million during the same period in 2005. For the three months ended June 30, 2006, funds from operations totaled $4.3 million or $0.08 per share compared to $4.5 million or $0.08 per share during the same period in 2005. Net income for the three months ended June 30, 2006 was $2.3 million or $0.03 per share as compared to net income of $2.2 million or $0.04 per share for the same period in 2005. For 2005, the third quarter results included $1.0 million from the implementation of capitalization policies in respect of interest and overheads attributable to development projects which were incurred for the entire nine month period of 2005.

Highlights

- All of our residential communities continue to enjoy high occupancy

levels (99%) and the complement of seasonal residents at all of our

recreational properties has increased from last year.

- Over $10.1 million has been invested in 13 different expansion

projects in the first nine months of this fiscal year. In this nine

month period, 127 new homes and recreational units were sold in our

expansion projects producing income from home sales of $2.1 million

(compared to 90 sales and $1.8 million in 2005). Additionally, 80

firm sales contracts (2005 - 27 contracts) are in hand and another 84

sales contracts are conditional on the sale of the customer's

existing home or financing.

- The acquisition of one property containing 355 sites and 200

expansion sites was completed during the third quarter, at a cost of

$8.5 million plus assumption of obligations to the local municipality

in respect of improvements to onsite infrastructure. This is in

addition to the eleven properties which were acquired in the first

half of the year.

- Subsequent to June 30, 2006, the Corporation completed the

acquisition of four communities in Southern Ontario containing 273

sites and entered into binding purchase and sale agreements for a 30

acre parcel of development land in Cold Lake, Alberta capable of

accommodating 167 sites and a mixed use project in Eastern Canada

containing 539 sites scheduled to close in January 2007. The 30 acre

parcel is expected to close later this year and builds on our

strategy of increasing our presence in Northern Alberta. Total

acquisition costs for these properties amounted to $9.9 million.

Parkbridge continues to execute its growth strategy through active development of its expansion lands and deployment of capital into high quality properties in our core markets. "Over the first nine months of this fiscal year, we have invested approximately $10.1 million in 13 different expansion projects and $65.1 million in 14 new property acquisitions. The $30 million private placement completed in June 2006 ensures we have the capacity to keep building on our strong operating platform," commented David Rozycki, President Eastern Operations and Co-CEO.

Parkbridge's portfolio as of August 10, 2006 now consists of 52 properties containing 11,138 sites and expansion capacity of over 3,600 sites.

Parkbridge Profile

Parkbridge is one of Canada's leading owners, operators and developers of residential and recreational land lease communities. The portfolio is concentrated in the provinces of Alberta, Ontario and Quebec.

Parkbridge is listed on the Toronto Stock Exchange and its head office is in Calgary, Alberta.

CONSOLIDATED INTERIM BALANCE SHEET

June 30 September 30

($000's) (Unaudited) 2006 2005

-------------------- ------------- -------------

Assets

Real estate assets 250,618 173,524

Cash and cash equivalents 4,616 3,326

Defeasance collateral 12,260 -

Inventory and other assets 25,490 17,371

------------- -------------

292,984 194,221

------------- -------------

Liabilities and Shareholders' Equity

Secured debt 135,413 71,195

Bank indebtedness - 5,783

Accounts payable and other 18,157 10,724

Future income taxes - -

Deferred credit 13,888 15,527

------------- -------------

167,458 103,229

Shareholders' Equity 125,526 90,992

------------- -------------

292,984 194,221

------------- -------------

CONSOLIDATED INTERIM STATEMENT OF INCOME AND FUNDS FROM OPERATIONS

Three Months Ended Nine Months Ended

June 30 June 30

--------------------- ---------------------

2006 2005 2006 2005

-------- -------- -------- --------

PROPERTY OPERATIONS

Rental and other

property revenues 10,707 7,609 26,509 16,916

Property operating

expenses and taxes (5,597) (3,556) (12,334) (7,031)

Brokerage and resale

income 408 279 465 292

-------- -------- -------- --------

Income from property

operations 5,518 4,332 14,640 10,177

-------- -------- -------- --------

HOME SALES OPERATIONS

Home sales revenue 12,289 7,035 18,115 11,102

Cost of home sales (10,494) (5,390) (15,413) (8,709)

Operating expenses (252) (266) (569) (600)

-------- -------- -------- --------

Income from home

sales operations 1,543 1,379 2,133 1,793

-------- -------- -------- --------

INCOME FROM OPERATIONS

BEFORE THE UNDERNOTED 7,061 5,711 16,773 11,970

-------- -------- -------- --------

Interest expense 1,905 795 4,905 2,659

Defeasance loss - - 2,097 -

Interest income (8) (24) (40) (137)

Asset management and

overhead expenses 769 266 2,171 1,396

Depreciation and

amortization 1,044 630 2,786 1,679

Stock-based

compensation 645 1,165 1,907 3,215

-------- -------- -------- --------

4,355 2,832 13,826 8,812

-------- -------- -------- --------

INCOME BEFORE INCOME

TAXES 2,706 2,879 2,947 3,158

-------- -------- -------- --------

Income taxes, net of

deferred credit 418 630 858 922

-------- -------- -------- --------

Net income 2,288 2,249 2,089 2,236

Add:

Defeasance loss - - 2,097 -

Depreciation on real

estate assets 1,044 617 2,786 1,642

Stock based

compensation 645 1,165 1,907 3,215

Future income taxes,

net of deferred

credit 289 430 369 622

-------- -------- -------- --------

FUNDS FROM OPERATIONS 4,266 4,461 9,248 7,715

-------- -------- -------- --------

The TSX has not in any way passed upon the merits of these transactions,

has not approved or disapproved the contents of this news release, nor

does it accept any responsibility for the adequacy of this release.

This news release contains forward-looking statements concerning the Corporation's business and operations. The Corporation cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Corporation's results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Management's Discussion and Analysis in the interim report for the period ended June 30, 2006, the Annual Information Form dated December 14, 2005, and the Management's Discussion and Analysis and audited financial statements for the year ended September 30, 2005. All reports may be viewed at www.sedar.com.

For further information: Mr. Iain Stewart, President, Western Operations and Co-CEO, Telephone: (403) 215-2109, Email: istewart@telusplanet.net; Mr. Glenn McCowan, Chief Financial Officer, Telephone: (403) 215-2175, Email: gmccowan@telus.net; Parkbridge Lifestyle Communities Inc., Telephone: (403) 215-2100, Facsimile: (403) 215-2115, 700, 505 - 3rd Street SW, Calgary, AB, T2P 3E6