Urbanfund Corp. Provides Default Status Report

Urbanfund Corp. ("Urbanfund" or the "Company") (TSX VENTURE: UFC), provides this default status update pursuant to the alternative information guidelines recommended by OSC Policy 57-603 and Canadian Securities Administrators' Staff Notice 57-301.

The Company had previously announced on April 18, 2007 that it would be delay the filing audited annual financial statements for the fiscal year ending December 31, 2006 (the "Annual Financial Statements") and accompanying management's discussion and analysis thereon. (the "MD&A"). The Ontario Securities Commission (the "OSC"), in accordance with its guidelines, issued a temporary order that prohibited all trading in and acquisitions of securities of the Corporation by all current directors, officers and insiders of the Corporation. On May 18, 2007, the OSC issued a permanent cease trade order for directors, officers and insiders in substitution for the temporary order.

The delay in filing the Annual Financial Statements and MD&A was principally due to the Corporation's predecessor auditor selling its professional practice. In light of: (i) the foregoing; (ii) the Corporation's engagement of a successor auditor; and (iii) the review by the successor auditor of the Corporation's historical financial statements and completion of the audit of the Annual Financial Statements, the Corporation was unable to complete the audit of the Annual Financial Statements and file the Annual Financial Statements and MD&A within the prescribed time period.

The Company confirmed today that it has filed the Annual Financial Statements and the MD&A on www.sedar.com.

For the year ended December 31, 2006, the Company reported a net loss of $601,977 on rental revenues of $1,280,219 compared with a net loss of $285,211 on rental revenues of $1,278,267 for the corresponding period in 2005. Net loss per share was $0.05 compared with a net loss per share of $0.03 for the corresponding period in 2005.

The decrease in net income in 2006 is principally due to the inclusion of the obligation for Future Income Taxes ($268,000) as Rental Income and Expenses remained in line with those in 2005.

Net assets increased by approximately $1,089,446 to $15,832,094 as at December 31, 2006 compared to an increase of $3,392,000 to $14,742,648 as at December 31, 2005. The increase in net assets was due to the addition of the Company's 5% undivided interest in Laval and the on-going work at the Richmond Street re-development project.

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                               Year ended    Year ended    Year ended
                              December 31,  December 31,  December 31,
                                     2006          2005          2004
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Revenue                        $1,356,983    $1,321,050    $1,274,732
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Net Income (Loss)                (601,977)     (285,211)     (188,068)
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Net Income (Loss)
 per Share - basic + diluted        (0.05)        (0.03)        (0.03)
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Total Assets                   15,832,094    14,742,648    11,351,001
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Long Term Debt                 13,617,239    12,373,465     8,772,906
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Cash Dividends
 Declared per Share                   Nil           Nil           Nil
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Pending the filing of the Company's the interim financial statements for the three-month period ended March 31, 2007 and accompanying management's discussion and analysis thereon, the Corporation intends to satisfy the alternative information guidelines recommended by OSC Policy 57-603 and Canadian Securities Administrators' Staff Notice 57-301 by issuing a news release every two weeks to update the shareholders on the filing delay.

Except as set forth above, the Corporation hereby confirms that there have been no changes regarding the information provided in the Corporation's Notice of Default.

Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. The Corporation's common shares trade under the symbol UFC.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend", "may", "will", "should", "could", "anticipate", "believe", "plan", "estimate", "potential", "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the Corporation's continuous disclosure documents filed with the Ontario Securities Commission and other regulatory authorities at www.sedar.com. Actual results may differ materially from those currently anticipated. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.