CALGARY, May 1 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the
"Corporation" ) announced that it will restate its financial statements for
the three month period ended December 31,2006. The Corporation has determined
that the amount of deferred charges of $5,119,000 stated in the balance sheet
at December 31, 2006 was misstated. The deferred charges represent transaction
costs that are directly attributable to issuing "other than as held for
trading" financial liabilities. According to the recommendation in "CICA"
Handbook section 3855.57(a), effective October 1, 2006, these transaction
costs should be recognized in net income. The cumulative effect of the change
in accounting for transaction costs will be reflected as adjustments of
$3,123,000 to the opening balance of retained earnings; $248,000 to net income
and $1,748,000 to future income tax recoverable in the financial statements
for the period ended December 31, 2006.

    About Mainstreet

    Mainstreet is a Calgary-based, growth-oriented real estate corporation
focused on the acquisition, redevelopment, repositioning, asset and property
management of mid-market apartment buildings. The Corporation currently owns
and operates residential rental units, including apartments and townhouses, in
Vancouver/Lower Mainland (Surrey), Calgary, Edmonton, Saskatoon and Greater
Toronto Area.

    The above disclosure may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, some of which are
beyond the Corporation's control, including: the impact of general economic
conditions in Canada, industry conditions, increased competition, the lack of
available qualified personnel or management, equipment failures, stock market
volatility, and fluctuations in rental prices, energy costs and foreign
exchange or interest rates. The Corporation's actual results, performance or
achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or, if any of them do so, what benefits the Corporation
will derive from them.

    Additional information is available at:

    www.mainst.biz,www.sedar.com