Wellsford Real Properties, Inc. Reports First Quarter 2006 Results.

NEW YORK -- Wellsford Real Properties, Inc. (AMEX:WRP) announced today that its net assets in liquidation at March 31, 2006 aggregated $53,383,604 or $8.25 per share based upon 6,471,179 common shares outstanding. Net assets in liquidation aggregated $56,569,414 or $8.74 per share at December 31, 2005.

The $3,185,810 decrease in net assets in liquidation from December 31, 2005 to March 31, 2006 is primarily attributable to the recording of a $4,226,938 provision upon the adoption of modifications by WRP's Board of Directors in the terms of WRP's stock option plans during the first quarter of 2006. The provision resulted from the modification to allow for cash payments that could be made to option holders as consideration for the cancellation of their options in the amount of the fair value of WRP's common stock in excess of the adjusted exercise prices of outstanding options as of March 31, 2006. The decrease was offset by the net effect of an increase in value to WRP's residential development projects from the accretion of discounting during the period of $672,805 and operating income of $368,323 which primarily represents interest income earned from cash and cash equivalents.

WRP had announced in November 2005 that its stockholders approved the Plan of Liquidation (the "Plan") at the annual meeting held on November 17, 2005. After the approval of the Plan by the stockholders, WRP completed the sale of its largest asset, the three residential rental phases of its Palomino Park project for $176,000,000. On December 14, 2005, WRP made an initial liquidating distribution of $14.00 per share, aggregating approximately $90,597,000, to its stockholders.

For all periods preceding stockholder approval of the Plan on November 17, 2005, WRP's financial statements are presented on the going concern basis of accounting. As required by generally accepted accounting principles, WRP adopted the liquidation basis of accounting as of the close of business on November 17, 2005. Under the liquidation basis of accounting, assets are stated at their estimated net realizable value and liabilities are stated at their estimated settlement amounts, which estimates will be periodically reviewed and adjusted as appropriate.

At March 31, 2006, WRP had total assets of $113,559,697 which was comprised primarily of real estate assets under development of $48,006,262, investments in joint ventures of $20,453,074, cash of $39,094,397 and restricted cash and investments of $3,972,503. Total liabilities and minority interests of $60,176,093 at March 31, 2006 was comprised of the reserve for estimated costs during the period of liquidation of $23,146,001, mortgage notes and construction loans payable of $23,769,349, the reserve for option cancellations of $4,092,236 and other accruals and liabilities of $9,168,507.

WRP reported first quarter 2005 revenues of $4,301,505 and a net loss of $(2,790,962), or $(0.43) per basic and diluted share.

Remaining Activities, Assets and Investments

At March 31, 2006, WRP's remaining activities, assets and investments were comprised primarily of the following:

--The 259 unit Gold Peak condominium development in Highlands Ranch, Colorado is the remaining phase from our Palomino Park development. Sales commenced in January 2006 and by March 31, 2006, 16 Gold Peak units were sold and 88 units were under contract.

--The Orchards is a single family home development in East Lyme, Connecticut, upon which WRP commenced building 101 single family homes on 139 acres. An additional 60 homes could be built on a contiguous 85 acre parcel of land also owned by the Company. The model home was completed during the fourth quarter of 2005. The completion of the initial homes and closings of initial sales are expected to occur in 2006. At March 31, 2006, three East Lyme homes were under contract.

--A 75% ownership interest in a joint venture that owns two land parcels aggregating approximately 300 acres in Claverack, New York. One land parcel is subdivided into seven single family home lots upon which Claverack intends to build and sell homes. The remaining 235 acres, known as The Stewardship, are currently subdivided into six single family home lots with the intent to obtain an increase in the number of developable residential lots, improve the land, obtain construction financing and construct and sell 48 single family homes.

--Interests in Reis, Inc., a real estate information and database company.

--A 10% interest in Clairborne Fordham, a company which currently owns and is selling the remaining two unsold residential units of a 50-story, 277 unit, luxury condominium apartment project in Chicago, Illinois.

The Plan

The Plan contemplates the orderly sale of each of WRP's remaining assets, which are either owned directly or through WRP's joint ventures, the collection of all outstanding loans from third parties, the orderly disposition or completion of construction of development properties, the discharge of all outstanding liabilities to third parties and, after the establishment of appropriate reserves, the distribution of all remaining cash to stockholders.

WRP currently contemplates that approximately 36 months after the approval of the Plan any remaining assets and liabilities would be transferred into a liquidating trust. The liquidating trust would continue in existence until all liabilities have been settled, all remaining assets have been sold and proceeds distributed and the appropriate statutory periods have lapsed.

As noted above, WRP's net assets in liquidation aggregated $53,383,604, or $8.25 per share on March 31, 2006. This amount presents development projects at estimated net realizable value after giving effect to the present value discounting of estimated net proceeds there from. All other assets are presented at estimated net realizable value on an undiscounted basis. The amount also includes a reserve for future estimated general and administrative expenses and other costs during the liquidation. Estimated net realizable value reflects economic changes and various other changed circumstances over recent months. There can be no assurance that these estimated values will be realized, nor if the reserve for future estimated general and administrative expenses is adequate. Such amount should not be taken as an indication of the timing or amount of future distributions to be made by WRP.

The timing and amount of interim liquidating distributions (if any) and the final liquidating distribution will depend on the timing and amount of proceeds the Company will receive upon the sale of the remaining assets and the extent to which reserves for current or future liabilities are required. Accordingly, there can be no assurance that there will be any liquidating distributions prior to a final liquidating distribution.

WRP is a company in liquidation. WRP was originally formed to operate as a real estate merchant banking firm to acquire, develop, finance and operate real properties and invest in private and public real estate companies. The Company's remaining primary operating activities are the development, construction and sale of three residential projects.

This press release, together with other statements and information publicly disseminated by WRP, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of WRP or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following, which are discussed in greater detail in the "Risk Factors" section of WRP's Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 16, 2006 which is incorporated herein by reference: general and local economic and business conditions; future valuation adjustments as a result of possible declines in the expected values and cash flows of residential development projects and investments or changes in the intent with regards to such projects and investments; competition; risks of real estate development, construction and renovation including construction delays and cost overruns; inability to comply with zoning and other laws and obtain governmental approvals; the risk of inflation in development costs (including construction materials); the availability of insurance coverages; the inability to obtain or replace construction financing for development projects; adverse consequences of debt financing including, without limitation, the necessity of future financings to repay maturing debt obligations; inability to meet financial and valuation covenants contained in loan agreements; inability to repay financings; exposure to variable rate based financings; risk of foreclosure on collateral; risks of leverage; risks associated with equity investments in and with third parties; risks associated with our reliance on joint venture partners including, but not limited to, the inability to obtain consent from partners for certain business decisions, the potential risk that our partners may become bankrupt, have economic or other business interests and objectives which may be inconsistent with those of WRP and our partners being in a position to take action contrary to our interests; inability and/or unwillingness of partners to provide their share of any future capital requirements; availability and cost of financing; interest rate risks; demand by prospective buyers of condominiums and single family homes; inability to realize gains from sales of condominiums and single family homes; lower than anticipated sales prices; inability to close on sales of properties; the risks of seasonality and increasing interest rates on WRP's ability to sell condominium units and single family homes; increases in energy costs, construction materials and interest rates could adversely impact our home building business as homes become more expensive to build and profit margins could deteriorate; inability to raise sale prices to maintain profit margins; the negative impact from a continuing rise in energy costs and interest rates on our marketing efforts and the ability for buyers to afford our homes at any price level, which could result in the inability to meet targeted sales prices or cause sales price reductions; environmental risks; inability of Reis to be sold at all, for the amount of proceeds used by WRP in valuing Reis, or on terms that are favorable to WRP; the Board could abandon the Plan; failure to achieve proceeds from the sales of assets to meet the estimated ranges of total distributions to stockholders under the Plan; the uncertainty as to the timing of sales of assets and the impact on the timing of distributions to stockholders; illiquidity of real estate assets and joint venture investments; increases in expenses which would negatively impact the amount of distributions pursuant to the Plan; unknown claims and liabilities which would negatively impact the amount of distributions pursuant to the Plan; the sale of undeveloped land, rather than the construction and sale, in the normal course of business, of single family homes or condominium units which would negatively impact the amount of distributions pursuant to the Plan; the inability to utilize all of WRP's Federal net operating loss carryforwards; and other risks listed from time to time in WRP's reports filed with the SEC. Therefore, actual results could differ materially from those projected in such statements.