Wellsford Real Properties, Inc. Announces the Completion of Palomino Park Property Due Diligence By Purchaser; WRP Increases Est

Wellsford Real Properties, Inc. (AMEX: WRP) announced
today that the purchaser of the three operating residential rental
phases of the Palomino Park project has completed their due diligence
and the purchase price remains at $176 million. Closing of the sale
remains subject to the approval by WRP's stockholders at its next
stockholders' meeting of its Plan of Liquidation ("the Plan").
   Palomino Park is a five phase, 1,707 unit multifamily residential
development in Highlands Ranch, a southern suburb of Denver, Colorado.
The five phases include (i) the three operating residential rental
phases comprising 1,184 units with a total of 1.3 million square feet
(Blue Ridge, Red Canyon and Green River), which are under contract for
sale, (ii) the 264 unit Silver Mesa phase was converted into
condominiums (and is completely sold out) and (iii) the 259 unit Gold
Peak phase which is being retained by WRP and is currently under
construction as for-sale condominiums.
   In May 2005, WRP reported that its Board of Directors approved the
Plan and that stockholders could receive $18.00 to $20.50 per share in
total distributions over the liquidation period, including an initial
distribution of $12.00 to $14.00 per share within 30 days after the
closing of the sale of the three rental phases of Palomino Park. After
considering the net effects of the Palomino Park transaction, the
previously announced redemption of a joint venture interest and the
previously announced decision to continue as a public company with the
related additional costs as such, management has determined, assuming
that the Palomino Park transaction is ultimately consummated, that the
initial distribution will be at $14.00 per share and has modified its
current estimate of the range of total distributions that stockholders
could receive to $18.50 to $21.00 per share over the liquidation
period.
   WRP is a real estate merchant banking firm headquartered in New
York City, which acquires, develops, finances and operates real
properties, constructs for-sale single family home and condominium
developments and organizes and invests in private and public real
estate companies.

   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 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 registration
statement on Form S-3 (File No. 333-73874) filed with the Securities
and Exchange Commission ("SEC") on December 14, 2001, as may be
amended, which is incorporated herein by reference: inability or
failure of the purchaser to close the Palomino Park transaction;
failure of the stockholders to approve the Plan; the Board could
abandon the Plan even if it is approved by the stockholders; failure
to achieve proceeds from the sales of assets to meet the estimated
ranges of initial and total distributions to stockholders; the
uncertainty as to the timing of sales of assets and the impact on the
timing of distributions to stockholders; illiquidity of certain assets
and investment; 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 land and construction in process,
rather than the construction and sale, in the normal course of
business, of single family homes or condominiums which would
negatively impact the amount of distributions pursuant to the Plan;
and other risks listed from time to time in WRP's reports and proxy
statement filed with the SEC. Therefore, actual results could differ
materially from those projected in such statements.