HOUSTON, May 23, 2006 (PRIMEZONE) -- Emerge Capital Corp. (OTCBB:EMGC), announced first quarter, 2006 results today. Net Income of $3,335,000 was a record for the company. The profits were driven by a one time gain of $3,042,406 on the sale of Emerge Capital's real estate subsidiary, Lehigh Corp. Exclusive of Emerge's one time gain, the company earned approximately $300,000 from first quarter operations versus a loss of $155,000 in Q1, 2005. Financial details on this quarter's results may be found in the Company's recently filed 10QSB ending March 31, 2006.
Tim Connolly, CEO of Emerge Capital, commented on the results: "We are focusing Emerge Capital's efforts on our strengths -- restructuring and turnaround services, business development, and merger and advisory services. We are happy to report the results this quarter of streamlining our operations, and look forward to reporting further positive results in the future to our shareholders." Fred Zeidman, Chairman of Emerge, added, "We are excited to see the seeds of our efforts over the last 12 months begin to bear fruit, and are hopeful that several of our portfolio companies will show significant growth over the coming months."
About Emerge Capital Corp and Corporate Strategies, Inc. -- Emerge Capital Corp. (OTCBB:EMGC) provides business growth, organizational restructuring, and turnaround execution services for emerging and re-emerging public companies through our wholly owned subsidiary, Corporate Strategies, Inc. (www.corporate-strategies.net). Emerge Capital is unique because we accept payment for our services in the common stock of the companies we serve, aligning our interests with those of the client's shareholders and preserving their corporate cash reserves for working capital and growth. As Emerge Capital succeeds, the shareholders of our valued clients succeed. Emerge Capital believes our approach provides Emerge shareholders with an opportunity to realize greater gains than merely receiving cash payments for our services. We consider Emerge Capital to be the ultimate business resource for emerging and re-emerging public companies.
All statements included in this press release, other than statements of historical fact, are forward-looking statements. Although Management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors could cause actual results to differ materially from the expectations that are disclosed in this Press Release. While Emerge Capital Corp/Corporate Strategies, Inc. believes its forecasting assumptions are reasonable, there are factors that are hard to predict and influenced by economic and other conditions that are beyond Emerge Capital Corp/Corporate Strategies, Inc.'s control. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in Emerge Capital Corp/Corporate Strategies, Inc.'s filings with the Securities and Exchange Commission.