Counsel Corporation Announces 2006 Second Quarter Results

Market Wire, August, 2006

Counsel Corporation (TSX: CXS) today reported its financial results for the three and six months ended June 30, 2006. All amounts are stated in Canadian dollars.

For the second quarter ended June 30, 2006, the Company's consolidated revenue from continuing operations was $20.1 million, an increase of 67.5% from $12.0 million in the same period of 2005. The increase in revenue is attributable to the acquisition of a case goods business and three income producing properties in the first half of 2006.

The Company had income from continuing operations of $0.6 million, or $0.01 per share, basic and diluted, for the three months ended June 30, 2006, compared with a loss of $2.9 million, or $0.06 per share, basic and diluted, for the three months ended June 30, 2005. Including discontinued operations, the Company had net income of $1.7 million or $0.03 per share, basic and diluted, for the three months ended June 30, 2006, compared with a net loss of $7.0 million, or $0.15 per share, basic and diluted, for the three months ended June 30, 2005.

For the six months ended June 30, 2006, the Company's consolidated revenue from continuing operations was $32.6 million, an increase of 34.2% from $24.3 million in the same period of 2005. The increase in revenue is attributable to the acquisition of a case goods business and three income producing properties in the first half of 2006.

The Company incurred a loss from continuing operations of $3.0 million, or $0.07 per share, basic and diluted, for the six months ended June 30, 2006, compared with a loss of $7.2 million, or $0.15 per share, basic and diluted, for the six months ended June 30, 2005. Including discontinued operations, the Company had net income of $3.9 million or $0.07 per share, basic and diluted, for the six months ended June 30, 2006, compared with a net loss of $16.7 million, or $0.35 per share, basic and diluted, for the same period of 2005.

Significant developments in 2006 to date are:

- On March 30, 2006, Counsel along with a group of investors, acquired the Lancaster Mall in Saint John, New Brunswick. Lancaster Mall is an enclosed shopping centre with approximately 199,000 sq. ft. of leaseable area, including three free standing pads. The area of the site is approximately 23 acres.

- On May 1, 2006, Counsel along with a group of investors, acquired McIntyre Centre in Thunder Bay, Ontario. McIntyre Centre is a strip centre with approximately 60,000 sq. ft. of leaseable area.

- On May 2, 2006, Counsel entered the case goods business with the acquisition of Fleetwood Fine Furniture Inc. Fleetwood is a custom case goods manufacturer which serves the North American hospitality industry, operating from 156,000 sq. ft. leased premises located in the west end of Toronto.

- On May 31, 2006, Counsel along with a group of investors, acquired Kingspoint Plaza in Brampton, Ontario. Kingspoint Plaza is a 165,000 sq. ft. strip plaza on a 17 acre site that includes a gas station and two land leased pads, with a newly opened Giant Tiger as its anchor tenant.

- On June 15, 2006, C2 Communications Technologies Inc., a wholly owned subsidiary of C2 Global Technologies Inc. (OTCBB: COBT), which is a 91 %-owned subsidiary of Counsel, filed a patent infringement lawsuit against AT&T, Inc., Verizon Communications, Inc., Qwest Communications International, Inc., Bellsouth Corporation, Sprint Nextel Corporation, Global Crossing Limited, and Level 3 Communications, Inc. The complaint was filed in the Marshall Division of the United States District Court for the Eastern District of Texas and alleges that the defendants' services and systems utilizing Voice over Internet Protocol infringes C2's U.S. Patent No. 6,243,373, entitled "Method and Apparatus for Implementing a Computer Network/Internet Telephone System". The complaint seeks an injunction, monetary damages and costs.

"We are pleased with the performance of our acquisitions during the first half of 2006," said Allan Silber, Chairman and CEO of Counsel.

The Company Management's Discussion and Analysis and Financial Statements for the three and six months ended June 30, 2006 have been filed and are available on SEDAR ( www.sedar.com ).

About Counsel Corporation

Counsel Corporation (TSX: CXS) is a diversified company focused on the acquisition of businesses in diverse industry sectors and at various stages of their business life cycles. Its goal for acquired businesses is to create value within these businesses and to realize on the value creation at the appropriate time. Counsel currently operates in four specific sectors: long-term care, real estate, patent licensing and custom case goods. For further information, visit Counsel's website at www.counselcorp.com .

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel Corporation currently operates, but because of the factors listed herein, as well as other factors beyond Counsel Corporation's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.