United Capital Corp. (AMEX:AFP) today reported results for the second quarter and six months ended June 30, 2006. Total revenues increased 8.2% for the quarter ended June 30, 2006 to $17.2 million from $15.9 million for the corresponding quarter of 2005. Income from continuing operations and net income were $2.7 million and $3.2 million for the current quarter, respectively. On a per share basis, net income for the second quarter of 2006 was $.39 per basic share, up $.03 from $.36 per basic share reported for the second quarter of 2005.

For the six months ended June 30, 2006, total revenues were $33.2 million, an increase of 6.7% over those of the first half of 2005, resulting in net income of $5.3 million or $.64 per basic share.

In January, the Company adopted SFAS No. 123R, "Share-Based Payments" which requires the measurement of stock-based compensation using a fair value method to be expensed in the financial statements. As a result, the Company recorded a pre-tax charge of $350,000 and $807,000 in the three and six months ended June 30, 2006, respectively. The impact on net income per basic share for the three and six months ended June 30, 2006 was $.03 and $.06 per share, respectively. The method employed does not allow prior periods to be restated.

In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted, "It was another good quarter. In addition to the strong financial results, we purchased a commercial property located in Long Island City, New York for $8.5 million in cash which is consistent with our goal of acquiring properties that provide the best long-term potential for our shareholders."

Certain statements in this press release and other statements made by the Company or its representatives that are not strictly historical facts are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. The forward-looking statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results, performance and/or achievements of the Company to differ materially from any future results, performance or achievements, expressed or implied, by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, and that in light of the significant uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company also assumes no obligation to publicly update or revise its forward-looking statements or to advise of changes in the assumptions and factors on which they are based. See our 2005 Annual Report on Form 10-K for a discussion of risk factors that could impact our future financial performance and/or cause actual results to differ significantly from those expressed or implied by such statements.

United Capital Corp. and its subsidiaries own and manage real estate and hotel properties and provide engineered products to industrial and automotive markets worldwide. -0- *T UNITED CAPITAL CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, ------------------- ------------------ 2006 2005 2006 2005 --------- --------- --------- -------- Revenues $17,195 $15,885 $33,221 $31,124 ========= ========= ========= ======== Operating income $3,268 $3,144 $5,066 $5,656 ========= ========= ========= ======== Other income $954 $1,536 $2,458 $3,336 ========= ========= ========= ======== Income from continuing operations before income taxes $4,222 $4,680 $7,524 $8,992 ========= ========= ========= ======== Provision for income taxes $1,476 $1,639 $2,680 $3,137 ========= ========= ========= ======== Income from continuing operations $2,746 $3,041 $4,844 $5,855 ========= ========= ========= ======== Income from discontinued operations $455 $239 $445 $290 ========= ========= ========= ======== Net income $3,201 $3,280 $5,289 $6,145 ========= ========= ========= ======== Basic earnings per share: Income from continuing operations $.33 $.34 $.59 $.65 Income from discontinued operations .06 .02 .05 .03 --------- --------- --------- -------- Net income per share $.39 $.36 $.64 $.68 ========= ========= ========= ======== Diluted earnings per share: Income from continuing operations $.27 $.28 $.48 $.53 Income from discontinued operations .05 .02 .04 .03 --------- --------- --------- -------- Net income per share assuming dilution $.32 $.30 $.52 $.56 ========= ========= ========= ======== Weighted average shares: Basic 8,288 9,020 8,321 9,081 ========= ========= ========= ======== Diluted 10,055 10,890 10,158 10,950 ========= ========= ========= ======== *T