UNR Holdings, Inc. Announces Second Quarter 2010 Financial Results

• 2Q10 Revenues Increased 319% YoY to $19.9 Million
• 2Q10 Net Income Attributable to UNR Increased 269% YoY to $3.4 Million
• 2Q10 EPS Increased 250% YoY to $0.14

ORLANDO, Fla., Aug. 24, 2010 (GLOBE NEWSWIRE) -- UNR Holdings, Inc. (OTCBB:UNRH) ("UNR" or the "Company"), a housing and commercial construction company which also provides infrastructure construction services for government oil and gas projects in Russia, today announced financial results for its second fiscal quarter ended June 30, 2010. The Company filed its 10-Q report with the SEC on August 20, 2010.

Alexey Kim, CEO of UNR Holdings, stated: "We are very excited to be able to share such strong financial results with our investors, and we believe that they are a testament to our economic resilience. We experienced an improvement in demand for our residential housing projects in the second quarter, which is a promising sign that Russia is emerging from the downturn caused by the global credit crisis in 2008 and 2009. We plan to continue leveraging our experience and reputation as one of the most respected construction firms in the Moscow area, and we believe that UNR is in a strong position to thrive both financially and competitively."

Second Quarter 2010 Financial Highlights

• Revenues for the second quarter ended June 30, 2010 totaled $19.9 million, an increase of 318.5% from $4.8 million in the second quarter of 2009.
   
• Net income attributable to UNR for the second quarter of fiscal 2010 totaled $3.4 million, an increase of 269.1% from $918,873 in the second quarter of 2009.
   
• Basic and diluted net income for the quarter was $0.14 per share, an increase of 250% from $0.04 per share in the same period a year ago.
   
• Gross profit (sales minus cost of sales) for the quarter increased to $6.2 million from $1.9 million in the prior year's period, representing an increase of 220.4%.
   
• Cash and cash equivalents totaled $39.0 million, up 94.0% from $20.1 million at December 31, 2009.

Financial Results for the Second Quarter Ended June 30, 2010

For the three months ended June 30, 2010, net revenues increased to $19.9 million as compared to revenues of $4.8 million during the three months ended June 30, 2009, an increase of 318.5%, or $15.2 million. The increase was primarily attributable to a gradual pickup in demand for the apartments UNR constructs, which has mainly affected the Company's construction and development business in 2010. The Company also observed a marginal improvement in demand for its proprietary road base and slopes stabilization material Prudon, which UNR supplies to infrastructure projects in various parts of Russia.

During the three months ended June 30, 2010, gross profit totaled $6.2 million, an increase of 220.4% or $4.3 million from $1.9 million in the same period a year ago. Gross margin was 31% for the second quarter, compared to 40.5% in the same quarter of 2009.

Selling, general and administrative expenses totaled $818,452 during the three months ended June 30, 2010, as compared to $724,977 for the three months ended June 30, 2009. The slight increase in selling, general and administrative expenses was attributed primarily to the increase in sales; however, SG&A expenses grew at a much lower rate than revenues due to the Company's continued efforts to control costs of transportation, communications, security, and office space.

Income from operations for the second quarter of fiscal year 2010 was $5.4 million, up 345.2%, or $4.2 million, from $1.2 million in the second quarter of fiscal year 2009. Operating margin was 27%, up from 25% in the same quarter of 2009. The strong increase in operating income was principally due to the gradual improvement in the economic environment in which the Company operates and the corresponding improvement in its residential real estate customers' ability to pay for, and/or partly finance, the apartments UNR constructs.

Net income attributable to the Company in the second quarter increased to $3.4 million, as compared with $918,873 during the three months ended June 30, 2009, representing an increase of 269.1%.

 As of June 30, 2010, UNR had approximately $39.0 million in cash and cash equivalents, $198.5 million in total assets, and no long-term debt. Shareholders' equity at June 30, 2010 was approximately $33.6 million, an increase of 20.0% from approximately $28.0 million at December 31, 2009.

Highlights for the Six Months Ended June 30, 2010

UNR reported total revenues of $39.5 million for the six months ended June 30, 2010, as compared to revenues of $16.1 million for the six months ended June 30, 2009, an increase of 144.8%. The increase in sales for the first six months of fiscal 2010 was largely due to the same factors influencing sales growth for the three months ended June 30, 2010.

For the six months ended June 30, 2010, income from operations was $9.6 million, an increase of 60.3% from $6.0 million in the first six months of 2009. Net income was $6.2 million for the six months ended June 30, 2010, a year-over-year increase of 68.0%. Basic and diluted earnings per share were $0.25 for the same period, compared with $0.15 in the six months ended June 30, 2009, an increase of 66.7%.

About UNR Holdings, Inc.

UNR Holdings is a holding company that has a 68% ownership in its subsidiary, 494 UNR. 494 UNR is a diverse construction company with more than 40 years of success serving the Russian construction market. The Company specializes in general and infrastructure construction services, such as designing and building multi-story apartment buildings for middle and upper middle class families, office buildings, highways, bridges, and production of a road base infrastructure construction product. While UNRH is involved in complex construction projects, the Company also assists the Russian government with infrastructure projects for oil and gas corporations, such as GAZPROM and TRANSNEFT.  494 UNR is one of the oldest and most established construction companies located and operating in Moscow and the Moscow area of the Russian Federation.

More detailed information on the housing projects is available at the UNR Holdings corporate website: http://www.unrhs.com.

Forward-looking statements

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.