Plazacorp announces $7.5 million offering of 8% mortgage bonds

Plazacorp Retail Properties Ltd. (PLZ:TSX Venture Exchange) announced today that it intends to raise $5 million through a first tranche of a $7.5 million mortgage bond offering that has been approved by the Plazacorp Board of Directors. The bonds, which bear interest at 8% per annum, payable monthly, will have a term of five years plus one month and will be secured by mortgages on real estate or on un-dispersed bond proceeds. The proceeds from the sale of the bonds will be used to finance future acquisitions and development of retail real estate and to fund legal, trustee and other fees associated with the offering.

Plazacorp will have the right to redeem up to one-half of the bonds on each of the third and fourth anniversary of the initial closing date of the $7.5 million mortgage bond offering. The first closing is scheduled to take place on April 26, 2006.

"This 8% Mortgage Bond offering will provide us with additional financing that will allow us to continue our program of development of new retail properties in New Brunswick, Nova Scotia, PEI, Newfoundland and Quebec. The mortgage bonds provide Plazacorp with the ability to complete and maximize long term financing for these new development properties at the most appropriate time. This preserves Plazacorp's equity for future investment and ultimately will allow us to achieve our goal to deliver a reliable and growing dividend to our shareholders", said Plazacorp President and CEO Michael Zakuta.

The Mortgage Bonds will be offered to Canadian Residents in reliance on statutory exemptions from prospectus and registration requirements. The Mortgage Bonds are RRSP eligible.

Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Québec and Atlantic Canada. Plazacorp owns interests in 62 properties comprising 3.8 million square feet of retail real estate.

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release.

%SEDAR: 00012014E

For further information: on Plazacorp, visit our website at www.plaza.ca or contact: Earl Brewer, Chairman or Kim Sharpe, Director of Business Development at (506) 451-1826; To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on Tools for Investors.

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