About Melcor Developments

Melcor Developments Ltd (Melcor), which traces its history back to 1923, has been a public company since 1968. The Company operates in Alberta in the metropolitan areas of Calgary, Edmonton, Lethbridge and Red Deer and in Arizona. The Company’s diversified operations includes the acquisition of raw land, which is held for future development until market conditions warrant the planning, servicing and marketing of urban communities which is then sold in the form of single family, multiple family and commercial / industrial lots; the development of income producing properties in Alberta; the ownership, development and management of commercial property in Western Canada, including a manufactured home community in Calgary; and the ownership and management of two championship golf courses in the Edmonton area. The Company’s wholly-owned subsidiary companies are Melcor Developments Arizona, Inc., Melcor Lakeside Inc. and Stanley Investments Inc. Land Acquisitions Land purchases during the year were: 597 Acres in Calgary Region (including 88 acres of option lands), 285 Acres in Edmonton Region, 160 Acres in Red Deer Region, 50 Acres in Lethbridge Region and 119 Acres in Kelowna Region. Property Development The current year activities included the completion of Crowfoot Business Centre in Calgary, which is 95% leased as of December 31, 2002 (including occupancies to February 2003). This asset was transferred to the Investment Property Division on November 1, 2002. The division is in the planning phase for the development of sites in Spruce Grove, Leduc, Calgary and Chestermere. Community Development This division is responsible for purchasing and developing land to be sold as residential and commercial lots. Property Development This division develops income properties which, when completed, are transferred to the Investment Property Division which will hold and manage the asset. Investment Property The Company owns and manages a portfolio of 18 commercial properties and a 308-unit manufactured home community. During the year the Company sold a 64,173 square foot multi-use building. Recreation Property The Company owns and manages two 18 hole golf course operations (one of which is 60% owned).