UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-Q x QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For
the quarterly period ended March 31, 2006 OR o TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE 
SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to
________________ Commission file number: 000-27582 SPEEDUS CORP.(Exact name of registrant as specified in
its charter) Delaware

13-3853788(State or other jurisdiction of

(I.R.S. Employer Identification
  No.)incorporation or organization)  9 Desbrosses Street, Suite
  402Brooklyn, New York

10013(Address of principal executive
  offices)

(Zip Code)  888-773-3669(Registrants telephone number, including area code)Not Applicable(Former name, former address and former fiscal year, if
changedsince last report)  Indicate by
  check mark whether the registrant (1) has filed all reports required to be
  filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
  the preceding 12 months (or for such shorter period that the registrant was
  required to file such reports), and (2) has been subject to such filing
  requirements for the past 90 days. YesxNo
oIndicate by
  check mark whether the registrant is a large accelerated filer, an
  accelerated filer, or a non-accelerated filer. See definition of accelerated
  filer and large accelerated filer in Rule 12b-2 of the Exchange Act.Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
xIndicate by check mark whether the
  registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
  Yeso
  NoxThe number
  of outstanding shares of the registrants common stock, par value $.01 per
  share, as of May 9, 2006 was 16,081,487.     SPEEDUS
  CORP.INDEX TO FORM 10-QPagePART I -- FINANCIAL INFORMATIONItem 1.
Financial StatementsConsolidated Balance Sheets as of March 31, 2006
(unaudited) and
  December 31, 2005
3Consolidated Statements of Operations (unaudited)
for the Three
  Months Ended March 31, 2006 and 2005
4Consolidated Statements of Cash Flows (unaudited)
for the Three
  Months Ended March 31, 2006 and 2005
5Notes to Consolidated Financial Statements
(unaudited)
6-11Item 2.
Managements Discussion and Analysis of
  Financial Condition and Results of Operations
12-15Item 3.
Quantitative and Qualitative Disclosures
  About Market Risk
15Item 4.
Controls and Procedures
16PART II --
  OTHER INFORMATIONItem 1.
Legal Proceedings
17Item 1A.
Risk Factors
17Item 2.
Unregistered Sales of Equity Securities and
  Use of Proceeds
17Item 3.
Defaults Upon Senior
Securities
17Item 4.
Submission of Matters to a Vote of Security
  Holders
17Item 5.
Other Information
17Item 6.
Exhibits
17Signature Page
18Exhibit
  31.1
Certification of Chief Executive
Officer
  Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted
  Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002
19Exhibit
  31.2
Certification of Chief Financial
Officer
  Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted
  Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002
20Exhibit
  32.1
Certification of Chief Executive
Officer
  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002
21Exhibit
  32.2
Certification of Chief Financial
Officer
  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002
222

SPEEDUS CORP.
CONSOLIDATED BALANCE SHEETS
(unaudited)

March 31,
  2006

December 31,
  2005ASSETSCurrent assets:Cash and cash
equivalents

$
12,538,057

$
18,563,088United States
Treasury bills


4,989,300


Marketable
securities


789,897


1,174,825Prepaid
expenses and other


161,672


181,508Accounts and
other receivables





500Total current
assets


18,478,926


19,919,921Property and equipment, net of
accumulated
  depreciation of $374,602 and $321,256


661,970


426,201Other intangible assets, net of
accumulated
  amortization of $2,792,677 and $2,607,133


437,367


622,911Other investments


800,000


800,000Other assets


678,209


691,444Total
assets

$
21,056,472

$
22,460,477LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts
payable

$
25,443

$
68,692Accrued
liabilities


1,083,115


1,215,859Total current
liabilities


1,108,558


1,284,551Minority interest





Commitments and
ContingenciesStockholders
equity:Common stock
($.01 par value; 50,000,000
  shares authorized; 21,750,174 shares issued)


217,502


217,502Preferred
stock ($.01 par value; 20,000,000
  shares authorized):Series A Junior Participating ($.01 par value; 4,000
  shares authorized; no shares issued and outstanding)





Additional
paid-in-capital


90,822,293


90,724,450Treasury stock
(at cost; 5,656,469 and
  5,632,275 shares)


(5,918,024
)

(5,884,863
)Accumulated
deficit


(65,173,857
)

(63,881,163
)Stockholders equity


19,947,914


21,175,926Total
liabilities and stockholders equity

$
21,056,472

$
22,460,477The accompanying notes are an integral part of these consolidated
financial statements.

3

SPEEDUS CORP.CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

Three months ended March 31,2006

2005Revenues

$
219,070

$
226,779Expenses:Selling,
general
  and administrative


863,444


974,982Research and
  development


457,362


326,632Depreciation
and
  amortization


238,890


230,077Cost of
sales


65,974


77,187Total operating
  expenses


1,625,670


1,608,878Operating loss


(1,406,600
)

(1,382,099
)Investment income/(loss)


113,906


281,865Minority interest





125,079Net earnings/(loss)

$
(1,292,694
)
$
(975,155
)Per share:Basic earnings/(loss) per common share

$
(0.08
)
$
(0.06
)Weighted average common shares outstanding - basic


16,107,989


16,218,725Diluted earnings/(loss) per common share

$
(0.08
)
$
(0.06
)Weighted average common shares outstanding - diluted


16,107,989


16,218,725The accompanying
notes are an integral part of these consolidated financial statements.

4

SPEEDUS
CORP.CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Three months ended March 31,2006

2005(revised)Cash flows from
  operating activities:Net
loss

$
(1,292,694
)

(975,155
)Adjustments to
  reconcile net loss to net cash used in operating activities:Depreciation
and
  amortization


238,890


230,077Unrealized
  investment (gains)/losses


(87,578
)

(180,566
)Minority
  interest





(125,079
)Stock based
  compensation


31,332


6,050Changes in
  operating assets and liabilities:Marketable
  securities


472,506


56,086Accounts and
  other receivables


500


44,484Prepaid
expenses
  and other


19,836


(6,275
)Other
assets


13,235


(58,159
)Accounts
payable


(43,249
)

(69,826
)Accrued
  liabilities


(66,233
)

(77,541
)Net cash used
in
  operating activities


(713,455
)

(1,155,904
)Cash flows from
  investing activities:Property and
  equipment additions


(289,115
)

(6,377
)United States
  Treasury bills:Purchases


(4,989,300
)

(4,971,100
)Maturities





5,977,200Net cash
  provided by/(used in) investing activities


(5,278,415
)

999,723Cash flows from
  financing activities:Repurchase of
  stock


(33,161
)

Net cash used
in
  financing activities


(33,161
)

Net decrease in
  cash and cash equivalents


(6,025,031
)

(156,181
)Cash and cash
  equivalents, beginning of period


18,563,088


17,740,865Cash and cash
  equivalents, end of period

$
12,538,057

$
17,584,684The accompanying
notes are an integral part of these consolidated financial statements.

5

SPEEDUS CORP.

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS(unaudited)

1. Basis of
Presentation

The
unaudited consolidated financial statements of Speedus Corp. have been prepared
in accordance with generally accepted accounting principles for interim
financial information. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for fair
statements have been included. These financial statements do not include all
information and notes required by generally accepted accounting principles for
complete financial statements. These financial statements should be read in
conjunction with the Companys 2005 audited consolidated financial statements
and notes thereto on Form 10-K.

Operating
results for the three months ended March 31, 2006 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2006.

Financial statements and principles of
consolidation

The
consolidated financial statements include the accounts of Speedus and its
wholly-owned subsidiaries. All significant intercompany accounts and
transactions have been eliminated in consolidation.

Companies
in which Speedus directly or indirectly owns more than 50% of the outstanding
voting securities or that Speedus has effective control over are accounted for
under the consolidation method of accounting. Under this method, those
companies balance sheets and results of operations, from the date Speedus
acquired control, are included in Speedus consolidated financial statements.
The interest in the net assets and operations of these companies other
stockholders is reflected in the caption Minority interest in Speedus
consolidated balance sheets and statements of operations.

The
Companys share of earnings or losses of associated companies that are 20% to
50% owned is included in the consolidated operating results using the equity
method of accounting.

Companies
in which Speedus owns less than 20% of the outstanding voting securities and
does not have the ability to exercise significant influence are accounted for
under the cost method of accounting.

Estimates

The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the dates of the financial statements and
the reported amounts of operating revenues and expenses during the reporting
periods. Actual results could differ from those estimates and the difference
could be material.

Marketable Securities

All
marketable securities are defined as trading securities under the provisions of
Statement of Financial Accounting Standards No. 115, Accounting for Certain
Investments in Debt and Equity Securities. At March 31, 2006 and December 31,
2005, marketable securities consisted of publicly traded equity securities and
were recorded at fair market value. Their original cost was $1,205,000 and
$1,419,000, unrealized gains/(losses) during the three months ended March 31,
2006 and 2005 were $(88,000) and $181,000 and the carrying value was $790,000
and $1,175,000, respectively. At March 31, 2006, based upon the fair market
value of these securities 49% was invested in technology and telecommunications
companies and 51% was invested in a coal company.

United States Treasury bills

United
States Treasury bills are classified as held-to-maturity securities and are
carried at amortized cost.

Other investments

The
Company has invested in equity and debt instruments of non-publicly held
companies and accounts for them under the cost method since the Company does
not have the ability to exercise significant influence over operations. The
Company monitors these investments for other than temporary impairment by
considering current factors including economic environment, market conditions,
operational performance and other specific factors relating to the business
underlying the investment, and records reductions in carrying values when
necessary. The Company does not believe there has been any impairment of other
investments at March 31, 2006.

6

Other
investments consist of:

March 31,

December
  31,2006

2005(a) 791,667 shares of preferred
stock of a non-publicly held cardiovascular technology
  company, recorded at cost in the amount of $300,000. In connection with this investment, the Company also received warrants
  to purchase 375,000 shares of  common stock at the lesser
  of $.40 or 80% of the per share price sold in the next round of financing. This investment was
  acquired in 2004.

$
300,000

$
300,000(b) an investment in an entity
specifically formed to invest in convertible preferred stock in
  a non-publicly held online and directory assistance company, recorded at cost in the amount of $250,000. The
  preferred stock is convertible into shares of common stock at a conversion price
  equal to 50%of the
  price of the common stock in an initial public offering. This investment was
  acquired in 2005.


250,000


250,000(c) an investment in an entity
specifically formed to invest in a senior third-party note of a
  non-publicly held online and directory assistance company, recorded at cost in the amount of $250,000. The note
  is convertible into shares of common stock at a conversion price equal to the price of the common stock in an initial
  public offering. This investment was acquired in 2005.


250,000


250,000$
800,000

$
800,000Securities Sold But Not Purchased

The
Company may sell publicly traded equity securities it does not own in
anticipation of declines in the fair market values of the securities. When the
Company effects such transactions, it must borrow the securities it sold in
order to deliver them and settle the trades. The amount that would be shown on
the balance sheet as Securities sold and not purchased would represent the
value of these securities at fair market value. At March 31, 2006 and December
31, 2005, there were no securities sold and not purchased.

Due From Broker

In
connection with selling publicly traded securities that it does not own, the
Company would be obligated to maintain balances with brokerage firms as
security for these transactions. At March 31, 2006 and December 31, 2005, there
were no restricted cash balances.

Concentrations of Credit Risk

Financial
instruments that potentially could subject the Company to concentrations of
credit risk consist largely of cash equivalents and marketable securities.
These instruments are potentially subject to concentrations of credit risk but
the Company believes that this risk is limited due to diversification and
investments being made in investment grade securities.

The Company
may sell publicly traded equity securities that it does not own in anticipation
of declines in the fair market values of the securities. When the Company sells
securities that it does not own, it must borrow the securities it sold in order
to deliver them and settle the trades. Thereafter, the Company must buy the
securities and deliver them to the lender of the securities. The Companys
potential for loss on these transactions is unlimited since the value of the
underlying security can keep increasing which could have a material adverse
effect on the Companys consolidated financial statements.

Long-lived Assets

The
Company periodically evaluates the net realizable value of long-lived assets,
including fixed and intangible assets, in accordance with Statement of
Financial Accounting Standards No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets, relying on anticipated future cash flows. The
Companys evaluation of anticipated future cash flows considers operating
results, business plans and economic projections, as well as, non-financial
data such as market trends, product and development cycles, and changes in
managements market emphasis. An impairment in the carrying value of an asset
is recognized when the expected future operating cash flows derived from the
asset are less than its carrying value.

Goodwill and Other Intangible Assets

The
Company accounts for goodwill and other intangible assets in accordance with
Statement of Financial Accounting

7

Standards No.
142, Goodwill and Other Intangible Assets which requires the use of a
nonamortization approach to account for purchased goodwill and certain
intangibles.  Under the nonamortization
approach, goodwill is not being amortized into results of operations, but
instead is reviewed for impairment on a reporting unit basis at least annually
and charged against results of operations only in the periods in which the recorded
value of goodwill is more than its implied fair value.

The
Company owns broadband assets, included in intangible assets, with a carrying
value of $310,000 at March 31, 2006 and currently does not generate significant
revenues or cash flows. However, the Company estimated that, based upon its
review of recent transactions and other factors, the fair value of certain
patents that have no carrying value on its books would generate sufficient cash
to fully realize the assets described above.

Other
intangible assets consist of: (i) the cost of a broadband patent and (ii)
medical technology in connection with the acquisition of a controlling interest
in Zargis Medical. The broadband patent, in the aggregate cost of $2,070,000
with accumulated amortization of $1,761,000 at March 31, 2006, is being
amortized over its remaining useful life of four years. Medical technology, in
the aggregate amount of $1,160,000 with accumulated amortization in the amount
of $1,032,000 at March 31, 2006, is being amortized over a period of three
years.

For
the three months ended March 31, 2006 and 2005, amortization expense relating
to intangible assets was $186,000 and $199,000, respectively. The estimated
annual amortization expense for the balance of fiscal 2006 and for fiscal 2007,
the expiration of the remaining useful life of the Companys intangible assets
at March 31, 2006, is $403,000 and $34,000, respectively. Amortization expense
is included in Depreciation and amortization on the accompanying consolidated
statement of operations and not allocated to Selling, general and
administrative, Research and development or Cost of sales.

Revenue Recognition

Revenues
from F&B Güdtfoods operations are recorded on a cash basis.

Earnings Per Share

Basic
and diluted earnings/(loss) per common share are determined in accordance with
Statement of Financial Accounting Standards No. 128, Earnings Per Share.

For
the three months ended March 31, 2006 and 2005, outstanding stock options and
warrants in the aggregate weighted average amount of 1,726,459 and 1,892,000,
respectively, have been excluded from the diluted loss per share since their
effect would be antidilutive.

Stock Options

Prior
to January 1, 2006, the Company accounted for its employee stock options
in accordance with Statement of Financial Accounting Standards No. 123,
Accounting for Stock-Based Compensation, as amended, which defines a fair
value method of measuring and accounting for compensation expense from
employee stock options. SFAS 123 also allowed accounting for such options under
the intrinsic value method in accordance with Accounting Principles Board No.
25, Accounting for Stock Issued to Employees. The Company elected to use the
intrinsic value method and adopted the disclosure only provisions of SFAS 123.
Generally, no compensation cost was recognized since stock options were issued
with exercise prices equal to the market value of the underlying shares on the
grant date. The following table presents unaudited pro forma earnings and
earnings per share as if the fair value method of accounting was applied during
the three months ended March 31, 2005:

Net loss as reported

$
(975,155
)After tax effect of pro forma
compensation


(22,000
)Pro forma net loss

$
(997,155
)Loss per share:Basic - as reported

$
(0.06
)Basic - pro forma

$
(0.06
)Diluted - as reported

$
(0.06
)Diluted - pro forma

$
(0.06
)Effective
January 1, 2006, the Company adopted SFAS 123R on a modified prospective
basis. Under this method, the Company records, on a straight line basis,
compensation cost on a prospective basis for all unvested awards as of
January 1, 2006 based upon the fair value of those awards on the grant
date. The fair value of the options at the date of grant was estimated using a
Black-Scholes option pricing model. Assumptions utilized in the model are
evaluated and revised, as necessary, to reflect market conditions and
experience. Expected volatility has been calculated based on the historical
volatility of the Companys stock prior to the grant date. The expected term
represents the period of time that options granted are expected to be
outstanding and is estimated based on historical option exercise experience.
The risk-free interest rate is equivalent to the U.S. Treasury yield in effect
at the time of grant for the estimated life of the option grant.

8

Recent Accounting Pronouncements

In
February 2006, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 155, Accounting for Certain Hybrid Financial
Instruments  an amendment of FASB Statements No. 133 and 140. SFAS No. 155
allows companies to elect to measure at fair value entire financial instruments
containing embedded derivatives that would otherwise have to be accounted for
separately. It also requires companies to identify interests in securitized
financial assets that are freestanding derivatives or contain embedded
derivatives that would have to be accounted for separately, clarifies which
interest only and principal only strips are subject to SFAS No. 133, and amends
SFAS No. 140 to revise the conditions of a qualifying special purpose entity
due to the new requirement to identify whether interests in securitized
financial assets are freestanding derivatives or contain embedded derivatives.
SFAS No. 155 is effective for all financial instruments acquired, issued or
subject to a remeasurement event for the first fiscal year beginning after
September 15, 2006. The Company does not expect adoption of SFAS No. 155 to
have a material effect on its results of operations or financial position.

In
March 2006, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 156, Accounting for Servicing of Financial
Assets  an amendment of FASB Statement No. 140. SFAS No. 156 requires the
recognition of a servicing asset or liability each time a company undertakes an
obligation to service a financial asset in certain situations. It requires all
separately recognized servicing assets and liabilities to be initially measured
at fair value, if practical. SFAS No. 156 is effective for the first fiscal
year beginning after September 15, 2006. The Company does not expect adoption
of SFAS No. 156 to have a material effect on its results of operations or
financial position.

Revision

The
Consolidated Statement of Cash Flows for the three months ended March 31, 2005
in this Form 10-Q has been revised to present net maturities of United States
Treasury bills in the amount of $1,006,100 as cash flows from investing activities
instead of cash flows from operating activities to conform to the presentation
in the Consolidated Statement of Cash Flows for the three months ended March 31, 2006.

2. Stockholders Equity

Stock Options

(a)
In November 2005, stockholders approved the Companys 2005 Stock Incentive Plan
to replace the 1995 Stock Incentive Plan which expired in October 2005. While
no new grants can be made under the 1995 Plan, 1,259,368 options outstanding at
the expiration of the 1995 Plan will remain outstanding until exercise,
cancellation or expiration. 1,636,459 options available for grant at the
expiration of the 1995 Plan have been made available for grant under the 2005
Plan.  To the extent that options
granted under the 1995 Plan are cancelled or expire, those options would be
available for issuance under the 2005 plan. Similar to the 1995 Plan, the 2005
Plan provides for the grant of various stockbased incentives, including
non-qualified and incentive stock options, to employees, directors and
consultants. The Company has issued new shares for the exercise of stock
options.

See
Note 1 for information on the Companys accounting policy for stock options.

Aggregate
stock option activity and weighted average prices under both Plans for the
three months ended March 31, 2006 is summarized as follows:

Options

PriceOutstanding at January
1


1,726,459

$
2.32Granted





0.00Exercised





0.00Expired





0.00Forfeited





0.00Outstanding at March
31


1,726,459

$
2.32Exercisable at March
31


1,547,651

$
2.42Available for grant at March
31


1,169,368Stock
based compensation expense recognized during the three months ended
March 31, 2006 was approximately $16,000. At March 31, 2006, there
was approximately $113,000 of compensation cost related to non-vested
stock-based awards that is expected to be recognized over a weighted average
period of 2.2 years.

The
following table aggregates certain information concerning currently outstanding
and exercisable stock options under both Plans at March 31, 2006:

9

Stock
  options outstanding


Stock
  options exercisableRange of
  exercise prices

Options

Weighted
  average
  remaining 
  life (years)

Weighted
  average
  exercise
  price

Aggregate
  intrinsic
  value

Options

Weighted
  average
  exercise
  price

Aggregate
  intrinsic
  value$
0.83
  - 1.00




393,220



5

$
0.97


$
130,000




393,220


$
0.97

$
130,0001.07
  - 2.08




720,000



8


1.34



68,000




541,192



1.30


67,0002.27
  - 4.84




566,500



4


3.92








566,500



3.92


5.20
  - 8.00




31,739



2


6.99








31,739



6.99


13.75
  - 15.00




15,000



3


14.17








15,000



14.17


1,726,459



6

$
2.36


$
198,000




1,547,651


$
2.42

$
197,000(b)
In February 2002, the Board of Directors of Zargis Medical Corp. approved the
Zargis 2002 Stock Option Plan and reserved 280,000 shares of Zargis common
stock for issuance under the plan. The Zargis 2002 Plan provides for the grant
of various stockbased incentives, including non-qualified and incentive stock
options, to employees, directors, advisors and consultants. To date, there have
been options exercised under the Zargis 2002 Plan.

Zargis
accounting policy for stock options is the same as the Companys. See Note 1.

Aggregate
stock option activity and weighted average prices under the Zargis 2002 Plan
for the three months ended March 31, 2006 is summarized as follows:

Options


PriceOutstanding at January
1


180,134

$
2.51Granted





0.00Exercised





0.00Cancelled





0.00Outstanding at March
31


180,134

$
2.51Exercisable at March
31


105,595

$
1.96Available for grant at March
31


99,866Stock
based compensation expense recognized during the three months ended
March 31, 2006 was approximately $15,000. At March 31, 2006, there
was approximately $131,000 of compensation cost related to non-vested
stock-based awards that is expected to be recognized over a weighted average
period of 1.9 years.

The
following table aggregates certain information concerning currently outstanding
and exercisable stock options under the Zargis 2002 Plan at March 31,
2006:

Stock
  options outstanding

Stock
  options exercisableRange of
  exercise prices

Options

Weighted
  average
  remaining 
  life (years)

Weighted
  average
  exercise
  price

Aggregate
  intrinsic
  value

Options

Weighted
  average
  exercise
  price

Aggregate
  intrinsic
  value$
0.50




30,000



7

$
0.50


$
90,000




30,000


$
0.50

$
90,0001.75




10,500



7


1.75



18,000




9,875



1.75


17,0002.50




69,634



8


2.50



70,000




55,720



2.50


56,0003.50




70,000



9


3.50








10,000



3.50


180,134



8

$
2.51


$
178,000




105,595


$
1.96

$
163,00010

3. Business Segment Information

The
following table sets forth the Companys financial performance by reportable
operating segment for the three months ended March 31, 2006 and 2005. F&B
Güdtfood and Zargis Medical are included in the consolidated financial
statements of the Company since May 6, 2002 and February 28, 2003,
respectively, the dates of acquisition of majority interests. The development
of Wibiki commenced during the quarter ended June 30, 2005.

Three
  months ended March 31, 2006F&B

Zargis

Wibiki

Corporate
  and other

TotalsRevenues from external
customers

$
218,732

$
0

$
0

$
338

$
219,070Depreciation and
amortization


45,801


2,558


0


190,531


238,890Operating loss


(190,055
)

(276,028
)

(159,079
)

(781,438
)

(1,406,600
)Investment
income/(loss)


475


17


0


113,414


113,906Other intangible
assets


0


127,791


0


309,576


437,367Fixed assets


609,098


21,285


0


31,587


661,970Total assets


860,951


338,234


0


19,857,287


21,056,472Three
  months ended March 31, 2005F&B

Zargis

Corporate
  and other

TotalsRevenues from external
customers

$
226,413

$
0

$
366

$
226,779Depreciation and
amortization


22,376


3,993


203,708


230,077Operating loss


(170,850
)

(332,985
)

(878,264
)

(1,382,099
)Investment
income/(loss)


(47
)

18


281,894


281,865Other intangible
assets


0


496,730


722,344


1,219,074Fixed assets


510,249


23,075


51,537


584,861Total assets


687,768


183,590


26,569,365


27,440,723The
Company has no foreign operations. During the three months ended March 31, 2006
and 2005, the Company did not have sales to any individual customer greater
than 10% of total Company revenues. The Companys accounting policies for
segments are the same as those described in Note 1.

4. Legal Proceedings

The
Company is not currently involved in any material pending legal proceedings.

11

ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

The
following discussion and analysis of financial condition and results of
operations should be read in conjunction with the corresponding discussion and
analysis included in the Companys Report on Form 10-K for the year ended
December 31, 2005.

Cautionary
Statement Regarding Forward-Looking Information

This
Managements Discussion and Analysis of Financial Condition and Results of
Operations and other sections of this Form 10-Q contain forward-looking
statements within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934, as amended (the Exchange Act).
These statements appear in a number of places in this Form 10-Q and include
statements regarding the intent, belief or current expectations of the Company
or its officers with respect to, among other things, the ability of the Company
to make capital expenditures, the ability to incur additional debt, as
necessary, to service and repay such debt, if any, as well as other factors
that may effect the Companys financial condition or results of operations.
Forward-looking statements may include, but are not limited to, projections of
revenues, income or losses, capital expenditures, plans for future operations,
financing needs or plans, compliance with covenants in loan agreements, plans
for liquidation or sale of assets or businesses, plans relating to products or
services of the Company, assessments of materiality, predictions of future
events, and the ability to obtain additional financing, including the Companys
ability to meet obligations as they become due, and other pending and possible
litigation, as well as assumptions relating to the foregoing. All statements in
this Form 10-Q regarding industry prospects and the Companys financial
position are forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the date
hereof. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

Business
Activities

Speedus
Corp. is a holding company that owns significant equity interests in diverse
businesses. We seek business opportunities across all industries for potential
transactions and relationships in which we can apply our current resources and
management strengths. The companies that we target, either public or privately
held, will be seeking growth or restructuring capital to pursue near term
business objectives in demonstrated markets. We will continue to pursue
opportunities involving our expertise in the medical device and wireless
markets as well as those areas involving our broadband assets as attractive
opportunities present themselves.

We
have co-invested with Siemens Corporate Research, Inc., a subsidiary of Siemens
Corporation, in Zargis Medical Corp. to develop advanced diagnostic decision
support products and services for primary care physicians, pediatricians,
cardiologists and other healthcare professionals. Zargis Acoustic Cardioscan
(ZAC), Zargis core product, is the first and only FDA-authorized computer-assisted
medical device designed to support physicians in analyzing heart sounds for the
identification of suspected murmurswhich are a potential sign of heart
disease. We own 90% of F&B Güdtfood Holding Corp., the creator and operator
of the original Eurocentric chic and quick café, which is operating two
stores in Manhattan. We own a portfolio of patents that allow for high-speed
wireless communications. We also own fixed wireless spectrum in the New York
City metropolitan area that we may commercialize in the future to support
high-speed, or broadband, Internet access service. For additional information
on each of our business segments, see the discussions below and Notes to
Consolidated Financial StatementsNote 3, Business Segment Information.

Zargis
Medical Corp.In January 2001, we co-invested with Siemens
Corporate Research, Inc., a subsidiary of Siemens Corporation, in Zargis
Medical Corp. to develop non-invasive, diagnostic support solutions that
automatically analyze acoustical data from a patient to determine
physiologically significant features useful in medical diagnosis. The
development of Zargis patented technology is a pioneering effort in medicine
which uses advanced signal processing algorithms deployed on standard computer
platforms. The first Zargis device, the Zargis Acoustic Cardioscan, received
FDA authorization in May 2004 and in September 2005. ZAC is currently being
tested by a select group of physicians to be used as part of general medical
examinations and physicals to detect suspected murmurs which could be a sign of
valvular and congenital heart disease. General medical examinations, according
to the National Center for Health Statistics, totaled 64 million in 2000 for
the US alone. Zargis is currently researching, and conducting trials on,
additional noninvasive diagnostic support tools that process acoustical data
from the body in order to provide an accurate and intelligible assessment of a
patients health. These assessments may be used by physicians and other healthcare
providers to assist in the early identification or monitoring of heart, lung,
vascular and other conditions and to provide better patient treatment.

We
have signed an exclusive contract with Zargis to provide transaction processing
to support Zargis medical products that will result in direct revenues
to us although these revenues will be eliminated on our consolidated financial
statements. Major next steps remaining
for Zargis include continuing marketing trials and clinical trials for new
applications of the Zargis technology and the formation of strategic
partnerships designed to support product commercialization.

In
February 2003, we acquired a controlling interest in Zargis Medical for an
additional investment of $1,250,000. In July 2003, we increased our ownership
in Zargis Medical to 68.9% by investing an additional $2,000,000. As of
December 31, 2003 and February 1, 2004, our ownership increased to 70.5% and
71.2%, respectively, as a result of certain milestones not having been met. In

12

September 2004, we
increased our ownership in Zargis Medical to 72.7% by investing an additional
$500,000. At December 31, 2005, as a result of continued advances aggregating
$1,480,000 during 2005, our ownership interest increased to approximately 78%.

F&B
Güdtfood. We own 90%
of F&B Güdtfood, the creator and operator of the original Eurocentric chic
and quick café, which is operating two stores in Manhattan. The acquisition
price was $3,500,000 in May 2002. In February 2003, we reduced our cash
investment in F&B Güdtfood and received $1,775,000 while maintaining our
original 51% interest. In December 2003, as a result of renegotiation, our
interest increased to 80% without an additional investment. As a result of
certain milestones not having been met, in 2005 our interest increased to 90%.
We expect that F&B Güdtfood will begin selling F&B Güdtfood franchises
through its wholly owned subsidiary, F&B Güdtfood Franchise Corp. We have
also entered into a management services contract with F&B Güdtfood that
will result in direct revenues to us although these revenues will be eliminated
on our consolidated financial statements.

Intellectual
Property. We have accumulated a portfolio of patents
that teach and cover the improvement of high-speed wireless communication
systems to allow greater information content, reliability, clarity, more
efficient use of licensed spectrum as compared to prior systems and other
advances. We have 6 domestic patents with expiration dates ranging from 2007
through 2017, with approximately 46 international counterparts in 28 countries.
We also have 4 domestic patents pending and 14 patents pending in an additional
3 countries. Certain wireless communications systems may employ a number of
different combinations of our patented technology to maximize operational and
spectrum efficiency. While we believe that there is great value in our patented
technologies, it is a lengthy and expensive process to investigate and pursue
licensing/patent infringement cases. We are evaluating a strategy for the
utilization of these patents in the future, which may include pursuit of
licensing or development of other strategic opportunities with users of the
underlying technology. We have licensed technology in the past, both
domestically and internationally, but are not currently receiving any license
fees.

On
May 11, 2006, we filed two separate complaints against Verizon Wireless in United
States District Court in the Southern District of Florida, in which we assert
Verizon is infringing two of our patents.  The suits address technologies now
used by Verizon to transmit television to wireless users over cellular networks
and the simultaneous transmission of analog and digital signals within the same
bandwidth.

Wibiki. During 2005, our
technology resources and experience in wireless broadband enabled us to
conceive a new software-based wireless network that leverages existing Wi-Fi
infrastructures to reduce cost, complexity and risk for users when accessing
the Internet wirelessly. We named that network Wibiki. Wibiki offers free beta
software designed to improve access to free Wi-Fi, including streamlining
registration and security configuration of Wi-Fi clients and routers. Wibiki
software for laptops and routers can be downloaded from www.wibiki.com.
Wibikis business model will employ a user opt-in advertising service we
call AdChooser to generate revenues that keep Wibiki services free to users.

Local
Multipoint Distribution Service (LMDS) license.We have an FCC commercial operating license,
awarded to us in recognition of our efforts in developing and deploying LMDS
technology and for spearheading its regulatory approval at the FCC, which
covers 150 MHz of spectrum in the New York City area. The license has been
renewed as a standard LMDS license through February 1, 2006. Renewal of the
license has been applied for and is currently pending. Under FCC authorization,
the license includes an additional 150 MHz of spectrum until the first Ka band
satellite is launched, an event which is not currently determinable. The
license provides that the spectrum may be used for a wide variety of fixed
wireless purposes, including wireless local loop telephony, high-speed Internet
access and two-way teleconferencing.

We
will not commence a full marketing effort using our LMDS technology until new
LMDS equipment becomes commercially available with cost and performance that
allow implementation of an economically viable business model. We cannot
determine when this will occur and this equipment may never be available to us
on this basis.

Other. We have invested a
portion of our assets in a portfolio of marketable securities consisting of
publicly traded equity securities. We have also invested a portion of our
assets in equity and debt instruments of non-publicly held companies. We have
in the past and may in the future sell publicly traded equity securities we do
not own in anticipation of declines in the fair market values of these
securities.

We
have generated operating losses and negative operating cash flows since our
inception and expect to continue to do so in the near future.

Critical
Accounting Policies

Our
discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements. The preparation of those
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the dates of the financial statements and the reported amounts
of operating revenues and expenses during the reporting periods. Actual results
could differ from those estimates. For a description of all of our accounting policies, see Note 1 to
our consolidated financial statements included in this Form 10-Q and Note 2 to
our consolidated financial statements included in our 2005 Form 10-K. However,
we believe the following critical accounting policies affect the more
significant judgments and estimates used in the preparation of our consolidated
financial statements.

Financial
instruments. Our financial instruments consist primarily of
cash equivalents, United States treasury bills and marketable securities and
may include securities sold and not purchased. The carrying value of cash
equivalents approximates market

13

value since these highly liquid, interest earning
investments are invested in money market funds. Marketable securities consist
of publicly traded equity securities classified as trading securities and are
recorded at fair market value, i.e., closing prices quoted on established
securities markets. Securities sold and not repurchased are also carried at the
fair market value of the securities. Significant changes in the market value of
securities that we invest in could have a material impact on our financial
position and results of operations.

We
have also invested in equity and debt instruments of non-publicly held
companies and account for them under the cost method since we do not have the
ability to exercise significant influence over operations. We monitor these
investments for other than temporary impairment by considering current factors
including economic environment, market conditions, operational performance and
other specific factors relating to the business underlying the investment, and record
reductions in carrying values when necessary.

Long-lived
assets. Long-lived assets, including fixed assets and other
intangibles, are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of any such asset may not be
recoverable through estimated future cash flows from that asset. The estimate
of cash flow is based upon, among other things, certain assumptions about
expected future operating performance. Specifically, we own broadband assets, included
in intangible assets, which had a carrying value of $0.3 million at March 31,
2006 and currently do not generate significant revenues or cash flows. However,
as of December 31, 2005, we estimated that, based upon our review of historical
transactions and other factors, the fair value of certain patents that have no
carrying value on our books would generate sufficient cash to fully realize our
assets described above as of December 31, 2005. These estimates may differ from
actual results due to, among other things, technological changes, economic
conditions, changes to our business model or changes in our operating
performance.

Contingencies. We account for contingencies in accordance with Statement of Financial
Accounting Standards No. 5, Accounting for Contingencies. SFAS No. 5 requires
that we record an estimated loss when information available prior to issuance
of our financial statements indicates that it is probable that an asset has
been impaired or a liability has been incurred at the date of the financial
statements and the amount of the loss can be reasonably estimated. Accounting
for contingencies such as environmental, legal and income tax matters requires
us to use our judgment.

Three
Months Ended March 31, 2006 Compared to Three Months Ended March 31, 2005

Revenues
decreased $8,000 from $227,000 for the three months ended March 31, 2005 to
$219,000 for the three months ended March 31, 2006. This slight decrease is
primarily a result of a reduction in menu prices at the Companys first store.

Selling,
general and administrative expenses decreased $112,000 from $975,000 for the
three months ended March 31, 2005 to $863,000 for the three months ended March
31, 2006. This decrease is primarily a result of decreases in compensation and
employee related expenses as a result of staff reductions.

Research
and development expenses increased $130,000 from $327,000 for the three months
ended March 31, 2005 to $457,000 for the three months ended March 31, 2006. This
increase is primarily a result of new wireless initiatives by the Company.

Depreciation
and amortization increased $9,000 from $230,000 for the three months ended
March 31, 2005 to $239,000 for the three months ended March 31, 2006. This slight
increase is primarily a result of renovation to one of the F&B Restaurant
stores, net of a decrease in amortization of medical technology resulting from
the Zargis acquisition.

Cost
of sales decreased $11,000 from $77,000 for the three months ended March 31,
2005 to $66,000 for the three months ended March 31, 2006. This decrease is
primarily a result of a decrease in sales.

Investment
income decreased $168,000 from a net gain of $282,000 for the three months
ended March 31, 2005 to a net gain of $114,000 for the three months ended March
31, 2006. Realized gains increased $60,000 from net gains of $40,000 for the
three months ended March 31, 2005 to net gains of $100,000 for the three months
ended March 31, 2006. Unrealized losses increased $328,000 from net gains of
$157,000 for the three months ended March 31, 2005 to net losses of $171,000
for the three months ended March 31, 2006. Interest income increased $100,000
from $85,000 for the three months ended March 31, 2005 to $185,000 for the
three months ended March 31, 2006. These amounts will fluctuate based upon
changes in the market value of the underlying investments, overall market
conditions and the amount of funds available for short-term investment and are
not necessarily indicative of the results that may be expected for any future
periods.

Minority
interest was $125,000 for the three months ended March 31, 2005. This amount
represents the interest of minority stockholders in the losses of F&B
Güdtfood and Zargis Medical since the dates of acquisition of a majority
interest. Through the three months ended March 31, 2006, F&B Güdtfood and Zargis Medical continued
to generate losses which, during 2005, reduced the minority interest balance to
zero. As result, the Company is consolidating 100% of the losses for these
entities and continues to fund their operations with intercompany loans or
additional investment, which are eliminated in consolidation.

Liquidity
and Capital Resources

The
Company has recorded operating losses and negative operating cash flows in each
year of its operations since inception.

14

Net
cash used in operating activities was $713,000 for the three months ended
March 31, 2006 compared to net cash used in operating activities of $1,156,000
for the three months ended March 31, 2005. This net decrease in cash used in
operating activities was primarily the result of the sale of marketable
securities.

Net
cash used in investing activities was $5,278,000 for the three months ended
March 31, 2006 compared to net cash provided by investing activities of
$1,000,000 for the three months ended March 31, 2005. This net increase in cash
used in investing activities was primarily the result of the purchase of United
States Treasury bills in the amount of $4,989,000 during the three months ended
march 31, 2006 compared to the maturity of United States Treasury bills in the
net amount of $1,006,000 during the three months ended March 31, 2005 and an
increase in property and equipment additions in the amount of $267,000.

Net
cash used in financing activities was $33,000 for the three months ended
March 31, 2006 as a result of repurchases of treasury stock.

At
March 31, 2006, the Companys future minimum lease payments due under
non-cancelable leases aggregated $1,628,000. $273,000 of this amount is due
during the remainder of 2006. $276,000, $284,000, $233,000 and $138,000 of this
amount is due during the years ending December 31, 2007, 2008, 2009 and 2010,
respectively, and the balance is payable thereafter. In addition, in connection
with a license agreement to which the Company is a party, a termination payment
will be payable by the Company in the amount of $500,000, $300,000 or $200,000
if the license agreement is terminated by the Company before September 2007,
September 2009 or September 2011, respectively.

The
Company believes that it has sufficient liquidity to finance its current level
of operations and expected capital requirements through the next twelve months.
However, the Company does not expect to have earnings from operations until
such time as it substantially increases its customer base and/or forms a
strategic alliance for use of its capabilities in the future. We cannot predict
when this will occur. We have no material non-cancelable commitments and the
amount of future capital funding requirements will depend on a number of
factors that we cannot quantify, including the success of our business, the
extent to which we expand our high-speed Internet service if suitable equipment
becomes available and the types of services we offer, as well as other factors
that are not within our control, including competitive conditions, government
regulatory developments and capital costs. The lack of additional capital in
the future could have a material adverse effect on the Companys financial
condition, operating results and prospects for growth.

We
have invested a portion of our assets in a portfolio of marketable securities
consisting of publicly traded equity securities. We purchase these securities
in anticipation of increases in the fair market values of the securities. We
have in the past and may in the future also sell publicly traded equity
securities we do not own in anticipation of declines in the fair market values
of these securities. When we sell securities that we do not own, we must borrow
the securities we sold in order to deliver them and settle the trades.
Thereafter, we must buy the securities and deliver them to the lender of the
securities. Our potential for loss on these transactions is unlimited since the
value of the underlying security can keep increasing.

Off-Balance
Sheet Arrangements

The
Company does not have any off-balance sheet arrangements.

Recent
Accounting Pronouncements

In
February 2006, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 155, Accounting for Certain Hybrid Financial
Instruments  an amendment of FASB Statements No. 133 and 140. SFAS No. 155
allows companies to elect to measure at fair value entire financial instruments
containing embedded derivatives that would otherwise have to be accounted for
separately. It also requires companies to identify interests in securitized
financial assets that are freestanding derivatives or contain embedded
derivatives that would have to be accounted for separately, clarifies which
interest only and principal only strips are subject to SFAS No. 133, and amends
SFAS No. 140 to revise the conditions of a qualifying special purpose entity
due to the new requirement to identify whether interests in securitized
financial assets are freestanding derivatives or contain embedded derivatives.
SFAS No. 155 is effective for all financial instruments acquired, issued or
subject to a remeasurement event for the first fiscal year beginning after
September 15, 2006. The Company does not expect adoption of SFAS No. 155 to
have a material effect on its results of operations or financial position.

In
March 2006, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 156, Accounting for Servicing of Financial
Assets  an amendment of FASB Statement No. 140. SFAS No. 156 requires the
recognition of a servicing asset or liability each time a company undertakes an
obligation to service a financial asset in certain situations. It requires all
separately recognized servicing assets and liabilities to be initially measured
at fair value, if practical. SFAS No. 156 is effective for the first fiscal
year beginning after September 15, 2006. The Company does not expect adoption
of SFAS No. 156 to have a material effect on its results of operations or
financial position.

ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The
Companys financial instruments at March 31, 2006 consist primarily of cash
equivalents, which are subject to interest rate risk, and marketable securities
and United States Treasury bills, which are subject to price risk.

As
part of our overall investment strategy, we invest in publicly traded equity
securities. We purchase these securities in

15

anticipation of increases in the fair market values of
the securities. We have in the past and may in the future also sell publicly
traded equity securities that we do not own in anticipation of declines in the
fair market values of the securities. When we sell securities that we do not
own, we must borrow the securities we sold in order to deliver them and settle
the trades. Thereafter, we must buy the securities and deliver them to the
lender of the securities. Our potential for loss on these transactions is
unlimited since the value of the underlying security can keep increasing which
could have a material adverse effect on the Companys consolidated financial
statements.

The
carrying value of cash equivalents and United States Treasury bills
approximates market value since these highly liquid, interest earning
investments are invested in money market funds and short-term government
securities, respectively. The Companys investment in marketable securities
consists of publicly traded equity securities classified as trading securities
and are recorded at fair market value. Securities sold and not repurchased are
carried at the fair market value of the securities.

ITEM 4.
CONTROLS AND PROCEDURES

Management
of the Company, including the Chief Executive Officer and the Chief Financial
Officer, evaluated the effectiveness of the design and operation of the
Companys disclosure controls and procedures (as such term is defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934)
as of the end of the period covered by this report. Based upon that evaluation,
the Companys Chief Executive Officer and the Chief Financial Officer concluded
that the Companys disclosure controls and procedures were effective as of the
end of the period covered by this report.

There
have not been any changes in the Companys internal control over financial
reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under
the Exchange Act) during the fiscal quarter ended March 31, 2006 that have
materially affected, or are reasonably likely to materially affect, the
Companys internal control over financial reporting.

16

PART II. OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGSNote 4 to the accompanying consolidated financial
  statements is incorporated herein by reference.ITEM 1A.
RISK FACTORSNo material changes.ITEM 2.
UNREGISTERED SALES OF EQUITY
  SECURITIES AND USE OF PROCEEDSStock repurchase program:Period

(a) Total Number
  of Shares (or
  Units) Purchased

(b) Average Price
  Paid per Share (or
  Unit)

(c) Total number
  of Shares (or
  Units) Purchased
  as Part of Publicly
  Announced Plans
  or Programs

(d) Maximum
  number (or
  Approximate
  Dollar Value) of
  Shares (or Units)
  that May Yet Be
  Purchased Under
  the Plans or
  Programs (1)January 1, 2006 - January 31,
2006


16,494

$
1.35


16,494

$
592,898February 1, 2006 - February 28,
2006


7,700

$
1.42


7,700

$
581,976March 1, 2006 -March 31,
2006


0

$



0

$
581,976Total


24,194

$
1.37


24,194

$
581,976(1) On November 21, 2000, the Company announced that its Board of Directors had approved a stock repurchase program for the
repurchase of up to $1,000,000 of Company stock through open market as well as privately negotiated transactions. Thereafter, the
Board of Directors approved increases to the program in the aggregate amount of $5,500,000.






ITEM 3.
DEFAULTS UPON SENIOR SECURITIESNone.ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF
  SECURITY HOLDERSNone.ITEM 5.
OTHER INFORMATIONNone.ITEM 6.
EXHIBITSExhibit number 31.1

Certification of Chief Executive Officer Pursuant to
  Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to
  Section 302 of The Sarbanes-Oxley Act of 2002.Exhibit number 31.2

Certification of Chief Financial Officer Pursuant to
  Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to
  Section 302 of The Sarbanes-Oxley Act of 2002.Exhibit number 32.1

Certification of Chief Executive Officer Pursuant to
  18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002.Exhibit number 32.2

Certification of Chief Financial Officer Pursuant to
  18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002.17

SIGNATURES

Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.

SPEEDUS CORP.Date: May 15, 2006
By: /s/ Shant S. HovnanianShant S. HovnanianChairman of the Board, President and Chief Executive
  OfficerDate: May 15, 2006
By: /s/ Thomas M. FinnThomas M. FinnTreasurer and Chief Financial and Accounting Officer18