GRANDFIELD PACIFIC INC. RELEASES FIRST QUARTER FINANCIAL RESULTS

YELLOWKNIFE, Sept. 24 /CNW/ - Grandfield Pacific Inc. today released the financial results for the first quarter ended July 31, 2010.

For the three months ended July 31, 2010

Net income before income tax for the three-month period ended July 31, 2010, was a loss of $40,273 as compared to net income for the same quarter ending in 2009 of $56,772. Although revenue is down for the quarter by $10,972 to $128,866 the improvement in operations results from a decrease in interest expense of $43,000 as a result of the renegotiation of the debt terms in January 2010.

Direct costs and expenses increased to $73,636 compared to the previous year's quarter of $67,728. The increase in direct costs is primarily a result of an increase in wages for employees to staff the Yellowknife Hotel.

Administration costs increased to $65,266 as compared to the quarter ended July 31, 2009 $62,021. This increase relates to increased travel costs and an increase in utilities.

    
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                                                For the three months ending:
    Summary of Financial information     Notes        31-Jul-10    31-Jul-09
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                                                         $            $
    Total revenue                          1            137,241      148,817

    Net (loss) income                                   (40,273)     (56,772)

    Basic/diluted loss per share                     (0.01/0.01)  (0.01/0.01)
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    Notes:
    1. Includes hotel revenue, management fees, interest and other income -
       does not include gain on sale of rental property
    

Additional information of the financial results of the Company is filed on System for Electronic Document Analysis and Retrieval ("SEDAR") and can be accessed electronically at www.sedar.com.

Grandfield Pacific Inc., through its operating subsidiaries, maintains ownership interests in and operates a hotel in Canada. The Company's offices are based in Yellowknife, Northwest Territories, Vancouver, British Columbia and Hong Kong.

%SEDAR: 00002312E

For further information: Sam Mark, President and Chief Executive Officer, Email: [email protected]