SOURCE: Dragon Capital Group Corp.

January 23, 2007 16:05 ET

2006 Revenues for Dragon Capital Group's Six Subsidiaries Surge to a Record $42.291 Million

SHANGHAI, CHINA -- (MARKET WIRE) -- January 23, 2007 -- Dragon Capital Group Corp. (PINKSHEETS: DRGV), a leading holding company of emerging technology companies in China, today announced the preliminary un-audited operating results of its six subsidiaries for the 12 months ended December 31, 2006. The results may be subject to adjustment and the Company expects to report consolidated results in February of 2007.

The Company's six technology-related subsidiaries in China recorded record revenues of approximately $42.29 million for the 12 months of 2006. Gross profits rose to approximately $2.98 million in 2006 with income from the six subsidiaries reaching approximately $1.37 million. Net income after taxes for 2006 was approximately $831,000. The Company sees consolidated net income to be between $500 and $600 thousand which will be reported in the Company's financial statements with financial notes, expected to be published in February and available for public viewing via http://www.pinksheets.com.

Lawrence Wang, CEO of Dragon Capital Group, stated, "We are very pleased with the performance of our subsidiaries in 2006 and we continue to see strong momentum in sales for the first quarter. We enter 2007 with the goal of continuing our growth while we increase operating margins and efficiencies through the continued integration of our subsidiaries and acquisitions. While we are driven to continue to deliver sales growth, management will focus its efforts on expanding operating margins and overall income from our operations to increase the value of our Company."

About Dragon Capital Group Corp.

Dragon Capital Group Corp. (PINKSHEETS: DRGV) is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. DRGV functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access to capital, merger & acquisition, business valuation, and revenue growth strategies. DRGV has developed a portfolio of high-tech companies operating in China. For more information about DRGV, please visit http://www.dragoncapital.us

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the word expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.

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