Wellsford Real Properties, Inc. Reports Second Quarter 2006 Results

Wellsford Real Properties, Inc. (AMEX:WRP) announced
today that its net assets in liquidation at June 30, 2006 aggregated
$55,844,106 or $8.63 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 and $53,383,604 or $8.25 per share at
March 31, 2006.
   At June 30, 2006, WRP had total assets of $113,536,539 which was
comprised primarily of real estate assets under development of
$49,236,994, investments in joint ventures of $20,453,074, cash of
$38,769,364 and restricted cash and investments of $3,050,473. Total
liabilities and minority interests of $57,692,433 at June 30, 2006 was
comprised of the reserve for estimated costs during the period of
liquidation of $21,627,367, mortgage notes and construction loans
payable of $24,422,172, the reserve for option cancellations of
$2,241,846 and construction payables, other accruals and liabilities
of $7,985,464.
   The $725,308 decrease in net assets in liquidation from December
31, 2005 to June 30, 2006 is primarily attributable to the recording
of a $4,226,938 provision upon the adoption by WRP's Board of
Directors of modifications in the terms of WRP's stock option plans
during the first quarter of 2006. The provision resulted from the
modification during the first quarter of 2006 to allow for cash
payments that would be made to option holders, at their election, 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. This
liability has been reduced by $1,317,505 ($0.21 per share) during the
three months ended June 30, 2006 to reflect the decrease in the market
price of WRP's common stock during such period. At each quarter end,
an increase to WRP's stock price would result in a decline in net
assets in liquidation, whereas a decline in the stock price (as
occurred to the stock price from March 31, 2006 of $7.91 per share to
June 30, 2006 of $7.07 per share) would increase WRP's net assets in
liquidation. These decreases were offset by (i) the net increase in
value of real estate assets under development of $1,353,297 which
results primarily from changes in the net realizable value estimates
including the shortening of the discount period due to the passage of
time and sales of condominium units and homes and (ii) operating
income of $830,848 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.
   WRP reported revenues of $4,037,315 and $8,338,820 and net income
of $2,969,122 and $178,160, or $0.46 and $0.03 per basic and diluted
share for the three and six months ended June 30, 2005, respectively.

   Remaining Activities, Assets and Investments

   At June 30, 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 41 Gold Peak
        units were sold by June 30, 2006 and 70 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
        WRP. Sales commenced in June 2006 and one home was sold by
        June 30, 2006. At June 30, 2006, four 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
$55,844,106, or $8.63 per share on June 30, 2006. This amount presents
development projects at estimated net realizable values 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 reserves for
future estimated general and administrative expenses and other costs
and for cash payments on outstanding stock options during the
liquidation. There can be no assurance that these estimated values
will be realized or that future expenses and other costs will not be
greater than recorded estimated amounts. 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 WRP 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. WRP'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 and the registration statement on Form S-8 filed with the SEC on
June 7, 2006: 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 or 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 estimate 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 uncertainty as to the ultimate liability for option cancellations
and its effect on reported net assets in liquidation as such amount is
impacted by the decisions of the option holders and changes in WRP's
market price for its common stock; 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.