Biloxi Marsh Lands Corporation Announces Un-Audited Results for the Second Quarter and First Six Months of 2006 and Provides Up

Biloxi Marsh Lands Corporation (PINK SHEETS:BLMC) today
announced its un-audited results for the periods ending June 30, 2006.
Total revenue for the second quarter of 2006 was $2,355,428 compared
to total revenue of $6,607,174 for the same period of 2005. For the
first six months of 2006 revenue was $10,707,248 compared to
$14,001,051 for the same period of 2005. It should be noted that the
first 6 month of 2006 included 8 monthly natural gas production
payments as compared to the normal 6 monthly payments (5 payments
received during Q1-2006; 3 payments received during Q2-2006). By
comparison the first six months of 2005 included 6 monthly production
payments. This increased number of payments was due to a timing
difference and was a one time event due to the Company taking its gas
"in kind" as of December of 2005. During the second quarter of 2006
revenues from mineral royalties decreased to $2,185,235 from
$5,230,204 for the same period of 2005. Revenue derived from Lease
bonus and delayed rentals were $11,354 for the second quarter of 2006
compared to $1,265,223 for the second quarter of 2005. During the
second quarter of 2005 bonus and delayed rentals revenue was
positively impacted by a large delayed rental payment in the amount of
$900,869. Due to the expiration of the lease agreement between the
Company and its major Lessee no delayed rental payments were due
during the first half of 2006. We did not realize any revenue from the
sale of securities during the first half of 2006. During the first
half of 2005 we realized $516,398 in revenue from the sale on
securities. Meanwhile, operating expenses for the second quarter of
2006 were $487,971 compared to operating expenses of $274,198 for the
same period of 2005. Net earnings were $1,323,723 or $ .48 per share
for the second quarter of 2006 compared to $4,034,562 or $1.46 per
share for the same period of 2005, and for the first half of 2006 net
earnings were $6,670,460 or $2.42 per share compared to $8,521,973 or
$3.09 per share for the same period of 2005.
   During the first half of 2006 the Company received 3D seismic data
related to final phase of the 3D seismic survey completed over the
past five years. The 3D seismic data covers the majority of Company
property including one mile in every direction beyond our boundaries.
This means that we not only have a significant 3D seismic inventory
covering our property, but also covering state water-bottoms and
property owned by third parties. Included in our 3D data inventory are
post-stacked processed data and the non-processed field tapes. As
previously reported, we have retained services of a geophysicist and a
geologist to review the data to determine if we can identify any
additional prospective acreage. Due to the type of processing of
Phases I and IV, we are re-processing these two phases to complete an
accurate evaluation. Ongoing costs of retaining the geologist and
geophysicists and the majority of the seismic re-processing cost were
realized during the first half of 2006.
   The Company has developed The Biloxi Marsh Stabilization and
Restoration Plan (The Plan). The Plan was conceptualized as a broad
brush plan several years ago to possibly influence funding in
conjunction with the Louisiana Coastal Area Study (LCA). Due to
Hurricane Katrina increasing the potential for funding, The Plan has
been expanded and made more specific to attempt to influence any
Federal spending for rebuilding and maintaining the coast line
southeast of the Greater New Orleans Metropolitan Area as a means of
natural defense from hurricane storm surges. In addition to increasing
the specificity of The Plan, we expanded the team of experts involved
in the development of The Plan. We have been proactively promoting The
Plan with local, State and Federal officials. In fact, the St. Bernard
Parish Council adopted The Plan as part of its plan. After several
meetings with the Louisiana Department of Natural Resources (LADNR),
including one with the Secretary, it appears that LADNR is going to
adopt key components of The Plan as part of its plan for restoring the
southeastern Louisiana coast. All of these developments illustrate
management's commitment to the area in which the Company's property is
located and should lead to positive impacts to our property and
preserve our mineral rights. The majority of the costs associated with
the development of The Plan were realized during the first half of
2006. We encourage all interested in The Plan to visit our website
www.biloximarshlandscorp.com where a copy is available.
   As of June 30, 2006 the combined gross daily production from 13
wells including those operated by The Meridian Resource & Exploration,
LLC and Manti Jambi, Inc. was approximately 33 mmcf with net daily
production accruing to the Company of approximately 3.5 mmcf. As of
the date of this release there are no wells being drilled on our
property.
   "We view our 80,000 acres not under mineral lease combined with
our 3D seismic inventory as a major asset. While there is no guarantee
that we will be successful, we are actively attempting to identify
prospective acreage within the boundaries of the 3D data in our
possession. We are hopeful that this will, over time, jump start
drilling activity and lead to an increase in proved reserves and
earnings. Meanwhile, we are proactively attempting to protect our
property and assist in the protection and reconstruction of St.
Bernard Parish, Louisiana which was devastated by Hurricane Katrina.
This is evident by the development of The Biloxi Marsh Stabilization
and Restoration Plan as well as the establishment and funding of the
Biloxi Marsh Disaster Relief Fund Corporation. We encourage all
parties interested in assisting in the rebuilding of St. Bernard
Parish to donate to the Biloxi Marsh Disaster Relief Fund Corporation.
The Biloxi Marsh Disaster Relief Fund Corporation is working on a
website that will give information on how to donate. The Fund's
website will be www.selarelief.com ," commented William B. Rudolf,
President and Chief Executive Officer.

   Biloxi Marsh Lands Corporation owns approximately 90,000 acres of
marsh lands located in St. Bernard Parish, Louisiana. As the
landowner, it derives the vast majority of its revenue from oil and
gas exploration and production activities that take place on or near
the company's land. The company also derives minimal revenues from
surface rentals.
   The Company maintains a website; www.biloximarshlandscorp.com and
strongly recommends that all investors and interested parties visit
the website to view historical press releases, historical financial
statements and general information.

   This news release contains forward-looking statements regarding
oil and gas discoveries, oil and gas exploration, development and
production activities and reserves. Accuracy of the forward-looking
statements depends on assumptions about events that change over time
and is thus susceptible to periodic change based on actual experience
and new developments. The Company cautions readers that it assumes no
obligation to update or publicly release any revisions to the
forward-looking statements in this report. Important factors that
might cause future results to differ from these forward-looking
statements include: variations in the market prices of oil and natural
gas; drilling results; unanticipated fluctuations in flow rates of
producing wells; oil and natural gas reserves expectations; the
ability to satisfy future cash obligations and environmental costs;
and general exploration and development risks and hazards. Readers are
cautioned not to place undue reliance on forward-looking statements
made by or on behalf of the Company. Each such statement speaks only
as of the day it was made. The factors described above cannot be
controlled by the Company. When used in this report, the words
"believes", "estimates", "plans", "expects", "should", "hopeful",
"outlook", and "anticipates" and similar expressions as they relate to
the Company or its management are intended to identify forward-looking
statements.

   The following "Statements of Assets, Liabilities and Stockholders'
Equity" and "Statement of Revenues and Expenses and Retained Earnings"
have been derived from an interim un-audited financial statement which
does not include the information and footnotes that are an integral
part of a complete financial statement.
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                    BILOXI MARSH LANDS CORPORATION
     Statements of Assets, Liabilities, and Stockholders' Equity
                        June 30, 2006 and 2005

                   Assets                        2006        2005
                                              ----------- -----------
Current assets:
 Cash and cash equivalents                   $ 3,411,661   1,050,629
                                              ----------- -----------
         Total current assets                  3,411,661   1,050,629
                                              ----------- -----------
Investments:
 Marketable debt and equity securities - at
  cost                                        19,627,771  13,003,968
 Land - at cost                                  234,939     234,939
                                              ----------- -----------
                                              19,862,710  13,238,907
                                              ----------- -----------
Property:
 Levees and office furniture and equipment
  (net of accumulated depreciation of
  $205,204 ($168,553 at 2005)                         --       2,898
                                              ----------- -----------
         Total assets                        $23,274,371  14,292,434
                                              =========== ===========
    Liabilities and Stockholders' Equity
Current liabilities:
 Federal income taxes payable                $ 5,082,819     526,165
 State income taxes payable                      745,353      93,880
 Payroll taxes payable                             1,695       1,833
                                              ----------- -----------
         Total current liabilities             5,829,867     621,878
                                              ----------- -----------
Stockholders' equity:
 Common stock, par value $.001 - 20,000,000
  shares authorized, 2,851,196 shares issued,
  2,754,428 shares outstanding                    47,520      47,520
 Retained earnings                            17,471,799  13,697,851
                                              ----------- -----------
                                              17,519,319  13,745,371
 Less cost of treasury stock - 96,768 shares     (74,815)    (74,815)
                                              ----------- -----------
                                              17,444,504  13,670,556
                                              ----------- -----------
         Total liabilities and 
          stockholders' equity               $23,274,371  14,292,434
                                              =========== ===========


                    BILOXI MARSH LANDS CORPORATION
      Statements of Revenues and Expenses and Retained Earnings
                 June 30, 2006 and Comparable Period

                        3 Months Ended            6 Months Ended
                            June 30                   June 30
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------

Revenues:
Oil and Gas
 Lease bonuses and
  delayed rentals      $11,354   $1,265,223      $11,354   $1,326,788
 Pipeline right of
  ways                       -            -            -      104,660
 Royalties (net of
  production taxes)  2,185,235    5,230,204   10,278,671   11,909,674
                   ------------ ------------ ------------ ------------

 Total Oil and Gas   2,196,589    6,495,427   10,290,025   13,341,122
                   ------------ ------------ ------------ ------------

Other:
 Dividends and
  interest             158,839      114,112      417,223      143,531
 Gain on sale of
  securities                 -       (2,365)           -      516,398
                   ------------ ------------ ------------ ------------

 Total Other
  revenues             158,839      111,747      417,223      659,929
                   ------------ ------------ ------------ ------------

 Total Revenue       2,355,428    6,607,174   10,707,248   14,001,051
                   ------------ ------------ ------------ ------------

Expenses

 Total Expenses        487,971      274,198      979,216      532,398
                   ------------ ------------ ------------ ------------

 Net Income before
  provision for
  income taxes       1,867,457    6,332,976    9,728,032   13,468,653
                   ------------ ------------ ------------ ------------

Income taxes
 Provision for
  income taxes         543,734    2,298,414    3,057,572    4,946,680
                   ------------ ------------ ------------ ------------

 Net Income          1,323,723    4,034,562    6,670,460    8,521,973

Retained Earnings-
 beginning of
 period             16,148,076   11,735,849   16,310,195   11,380,080
                   ------------ ------------ ------------ ------------
                    17,471,799   15,770,411   22,980,655   19,902,053
Dividends                    -    2,072,560    5,508,856    6,204,202
                   ------------ ------------ ------------ ------------
Retained earnings-
 end of period     $17,471,799  $13,697,851  $17,471,799  $13,697,851
                   ------------ ------------ ------------ ------------
 Per Share               $0.48        $1.46        $2.42        $3.09
                   ============ ============ ============ ============
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