CanaDream Corporation Reports Third Quarter Earnings of $1.9 Million or 10.5 Cents Per Share

Revenues for the nine months of $19.6 million is 4% lower than last year, cash flow from operations of $5.0 million (27 cents per share) is 23% lower than last year, net income and comprehensive income of $1.9 million is 17% lower than last year.

The Company encourages interested parties to access CanaDream Corporation's Management Discussion and Analysis (MD&A) on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

Summarized results for the nine months ended January 31, 2010 are as follows:

                                    January 31,    January 31,              
                                          2010           2009      %Change  
                               ---------------------------------------------
                                                                            
Revenue                           $ 19,554,000   $ 20,424,000           (4%)
                                                                            
Revenue less direct expenses      $  9,478,000   $ 10,669,000          (11%)
                                                                            
Income before income tax          $  2,807,000   $  3,391,000          (17%)
                                                                            
Net and comprehensive income      $  1,925,000   $  2,322,000          (17%)
                                                                            
Cash flow from operations         $  5,012,000   $  6,477,000          (23%)
                                                                            
Basic earnings per share            10.5 cents     14.0 cents          (25%)
                                                                            
Fully diluted earnings                                                      
 per share                          10.3 cents     13.8 cents          (25%)
                                                                            
Common Shares outstanding           19,752,657     16,472,042               
                                                                            
Weighted average number of                                                  
 common shares outstanding          18,281,357     16,515,792               

Income before income taxes of $2.8 million decreased $584,000 or 17% from the prior year third quarter. On a fully diluted basis earning per share decreased 3.5 cents or 25%.

Decreased revenues of $870,000 or 4% is due in part from a 16% decrease in fleet and available rental nights resulting in an 8% decrease in booked rental nights.

Direct expenses for the nine months increased by $322,000 compared to last year's $9.8 million. The decrease in revenues combined with the increase in direct expenses resulted in the gross margin decrease of $1.2 million or 11%.

Investment in rental fleet was $24.4 million at January 31, 2010, a decrease $2.2 million from January 31, 2009 and a decrease of $334,000 from April 30, 2009 year-end levels. The investment in fleet inventory available for sale was $1.4 million at January 31, 2010 a decrease of $2.7 million from January 31, 2009 and $1.3 million from April 30, 2009 year-end levels.

Fleet capital asset and other financing decreased $5.9 million or 23% to $19.5 million from the prior years third quarter of $25.5 million.

The Company's short-term liquidity position (cash and cash equivalents plus accounts receivable and short term deposits, minus accounts payable and accrued liabilities) stands at $1.1 million compared to $(125,000) at January 31, 2009.

It should be noted that the Company's core business, rental of recreational vehicles, is seasonal in nature with the majority of its revenue being earned during the May to October period, its first and second quarters. The majority of the company's direct expenses are incurred in that same period. The Company markets rental units and fleet inventory available for sale on a continuous basis throughout the year, however sales of such units are generally strongest in the spring and early summer. As a result of ongoing interest, amortization and adjustments and selling, general and administrative expenses, the last two quarters of the fiscal year normally produce operating losses. Losses incurred in the last two quarters may exceed profits earned in the first two quarters of the fiscal year.

The financial data included in this release has been prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for the term cash flow from operations per share. Cash flow per share is a measure that provides shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations.

The Company encourages interested parties to access CanaDream Corporation's MD&A on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system, , (www.canadream.com), and its business-to-consumer on-line Internet reservation system, (www.canadream.com), to operate and expand its network of RV rental locations in Canada. CanaDream maintains six Company-operated locations in Calgary, Vancouver, Whitehorse, Toronto, Montreal, and Halifax. The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream's e-commerce systems. CanaDream currently has two associate dealer franchisees in Kelowna, British Columbia and Edmonton, Alberta.

Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. BRIAN@canadream.com