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• In February 2010, Counsel's Case Goods subsidiary, Fleetwood Fine Furniture ("Fleetwood"), arranged new equity financing of $2.5 million from a third party investor for 25% of the outstanding units of Fleetwood. As a result, Counsel's ownership of Fleetwood has been reduced from approximately 95% to approximately 71%. The proceeds from the capital raise have been used to fund the transition of Fleetwood's manufacturing capacity to Asia, as well as for working capital and general corporate purposes.

• In April 2010, the Company sold its 20% ownership interest in six income producing properties in Brockville, Ontario for proceeds of approximately $1.4 million.

• In April 2010, Counsel RB Capital LLC ("Counsel RB"), Counsel's asset liquidation subsidiary, as part of a consortium, completed the sale of the former Aleris Aluminum manufacturing facility in Trois-Rivières, Quebec to an overseas purchaser for approximately US$25 million. Counsel RB and its partners purchased the Aleris Aluminum assets in November 2009. Counsel RB's interest in the transaction has yielded a gain of approximately US$2.1 million after expenses.

The Company had a first quarter loss from continuing operations of $2.5 million, or $0.04 per share, basic and diluted, compared with a loss of $4.0 million, or $0.09 per share, basic and diluted, for the three months ended March 31, 2009. Including discontinued operations, the Company had a net loss of $2.4 million, or $0.04 per share, basic and diluted, for the three months ended March 31, 2010, compared with a net loss of $3.9 million, or $0.09 per share, basic and diluted, for the three months ended March 31, 2009.

"The achievements of our Counsel RB Capital operations and our Polaroid investment, along with a strengthening real estate market, put Counsel Corporation in an excellent position for success in 2010" said Allan Silber, Chairman and CEO of Counsel Corporation.

The Company's Management's Discussion and Analysis and Financial Statements for the three months ended March 31, 2010 have been filed and are available on SEDAR ([ www.sedar.com ]).

About Counsel Corporation

Counsel Corporation (TSX:CXS) is a private equity investor and alternative asset manager that actively partners with businesses to achieve shared success and to unlock value through leveraging its relationships, access to capital and strategic market experience. For further information, please visit Counsel's website at [ www.counselcorp.com ].

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel Corporation currently operates, but because of the factors listed herein, as well as other factors beyond Counsel Corporation's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.

Counsel Corporation

Consolidated Statements of Operations

(in thousands of Cdn Dollars, except per share amounts)

(Unaudited)

		Three months ended March 31,
		2010		2009
		$		$
Revenues		13,155		8,256
Expenses (exclusive of depreciation, amortization and interest expense shown below) and other (income)losses
	Operating costs	9,429		6,013
	Selling, general and administrative expense	3,375		2,640
	Foreign exchange (gain) loss	(39	)	1,464
	(Gain) loss on short-term investments	(97	)	(158	)
	Other	-		(182	)
		12,668		9,777
Income(loss) before depreciation, amortization, interest expense, income taxes, and discontinued operations		487		(1,521	)
	Depreciation and amortization	957		986
	Interest expense	1,392		1,552
Loss before income taxes and discontinued operations		(1,862	)	(4,059	)
	Income tax provision	80		11
Loss from continuing operations		(1,942	)	(4,070	)
Income from discontinued operations		192		84
Net loss		(1,750	)	(3,986	)
Net income(loss) attributable to non-controlling interest		654		(109	)
Net loss attributable to controlling interest		(2,404	)	(3,877	)
Basic and diluted net income(loss) per share:
	Continuing operations	(0.04	)	(0.09	)
	Discontinued operations	0.00		0.00
Basic and diluted net income(loss) per share		(0.04	)	(0.09	)
Weighted average number of common shares
outstanding (in thousands) - basic and diluted		61,820		44,755

The notes contained in the Company's interim consolidated financial statements are an integral part of these condensed consolidated financial statements.

Counsel Corporation
Consolidated Balance Sheets
(in thousands of Cdn Dollars)
(Unaudited)
		March 31,	December 31,
		2010	2009
		$	$
Assets
Current assets
	Cash and cash equivalents	10,284	8,048
	Short-term investments	1,147	1,519
	Accounts receivable (net of allowance for doubtful accounts of $123; 2009 - $129)	5,508	5,303
	Inventories	10,647	6,734
	Prepaid expenses and deposits	2,182	2,428
	Future income tax assets	678	766
	Assets of discontinued operations	13,391	1,125
		43,837	25,923
Long-term assets
	Income producing properties, net	88,541	100,721
	Properties under development	7,094	6,800
	Property, plant and equipment, net	1,987	2,042
	Portfolio investments	27,102	28,737
	Intangible assets, net	2,699	3,033
	Goodwill	26,303	26,058
	Tenant related costs and other assets	6,191	5,951
		203,754	199,265
Liabilities
Current liabilities
	Accounts payable and accrued liabilities	13,600	13,480
	Customer deposits	6,055	4,911
	Income taxes payable	33	44
	Future income tax liabilities	57	58
	Current portion of mortgages and loans payable	18,244	16,876
	Convertible preferred shares	11,538	11,538
	Liabilities of discontinued operations	8,021	273
		57,548	47,180
Long-term liabilities
	Mortgages and loans payable	73,781	81,809
	Intangible liabilities	487	571
	Future income tax liabilities	1,391	1,405
		133,207	130,965
Shareholders' equity		70,547	68,300
		203,754	199,265

The notes contained in the Company's interim consolidated financial statements are an integral part of these condensed consolidated financial statements.

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