BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

January 22, 2007 14:29 ET

British Columbia Discovery Fund Investee Company Day4 Energy Inc. Completes $11 Million Private Equity Financing-Results in Significant Increase to Pricing Net Asset Value Per Share of the Fund

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 22, 2007) - British Columbia Discovery Fund (VCC) Inc. (the "Fund" or "BCDF") is pleased to announce that privately-held investee company, Day4 Energy Inc., has successfully raised over $11 million in the first closing of an equity financing placed by investment banker GMP Securities L.P. of Toronto. The Fund was an early investor in Day4, having invested a total of $2.8 million since early 2004. Primarily as a result of the increased valuation of the shares of Day4 in the current financing, the Fund's share value, or Pricing Net Asset Value per Share, increased by $0.43, or by approximately 5.0%, and was $9.18 as at the January 19, 2007 weekly valuation date.

Established in 2001, Day4 is a solar-energy company dedicated to producing affordable and efficient photovoltaic (PV) power generation solutions. Day4's vision is to be a leading global supplier of solar PV products based on its proprietary technology and to accelerate the transition of the PV industry from a niche market application to one of the key components of the global electrical power generation mix. The Company designs and manufactures PV modules and sun concentrator receivers from its new manufacturing facility in Burnaby, B.C. and is currently selling its solar panels, ranked as the highest efficiency commercially available multi-crystalline solar panel in its class, and first generation modules to customers in Europe and North America. Day4 prides itself as a source of cost-effective premium solutions for solar energy generation achieved through a process of continuous innovation. The co-founders and management of Day4 have an impressive track record of both scientific and business achievements, and include Dr. John MacDonald, Day4's Chairman and CEO (and also a director of the Fund, and co-founder of MacDonald Dettwiler), Professor Leonid Rubin, Day4's VP and Chief Technology Officer, and George Rubin, Day4's President and Chief Operating Officer.

"In just a few short years, Day4 has emerged from its development phase and is actively into a commercialization phase, a tremendous credit to the small team of highly-skilled professionals at Day4," remarked John McEwen, CEO of the Fund. "This remarkable progression has resulted in a significant appreciation of the Fund's early investment in Day4, which we hope will further increase shareholder value in coming years as Day4 continues with its aggressive production plans for new solar power products based on its leading-edge patented technology."

Harry Jaako, President of the Fund, further commented - "Day4 is seeking to be a leading player in the exciting and rapidly growing global industry for solar system installations, as the world seeks clean, renewable alternative energy solutions. While presently only a niche market, there were US$6.3 billion of PV module shipments in 2005, giving some idea of the potential magnitude of the market for these products."

BC Discovery Fund is extremely fortunate and pleased to have had early involvement in a number of 'Green Tech' companies in British Columbia. In addition to Day4 Energy, investee companies such as TIR Systems and Tantalus Systems are locally B.C.-based companies making very real, commercially feasible strides on the global energy stage.

Based on available data, BCDF is currently the top performing venture capital corporation (VCC) fund that is available for sale in British Columbia.

About British Columbia Discovery Fund (VCC) Inc.

British Columbia Discovery Fund (VCC) Inc. was established to make venture capital investments in a portfolio of small businesses in British Columbia that qualify under the Small Business Venture Capital Act, focusing on all of B.C.'s top internationally recognized technology clusters; information technology, communications, health and life sciences, and energy and environmental technologies. Established in 2002 and managed by Discovery Capital Management Corp., the Fund is the largest SBVCA registered venture capital corporation making diversified investments in British Columbia with the objectives of achieving long-term capital appreciation for its shareholders and contributing to the growth in value and employment of the technology industry in British Columbia. In addition to offering a means of participating in the potential of British Columbia's newest technology ventures, the Fund offers significant tax savings to eligible British Columbia individual and corporate investors. The Fund offers its shares on a continuous basis and has raised over $38 million to date. To obtain further information about the Fund, please contact a registered advisor, visit www.sedar.com or www.bcdiscoveryfund.com.

About Discovery Capital Management Corp.

With nearly 20 years of venture capital experience in British Columbia, Discovery Capital is a venture fund manager and investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. We have enhanced value for over 275 technology ventures, with our proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity.

For more information about Discovery Capital, please visit www.discoverycapital.com.

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. The issuer cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the issuer currently foresees.

Contact Information

  • British Columbia Discovery Fund (VCC) Inc.
    Charles Cook
    CFO
    (604) 683-3000 ext. 102
    or
    British Columbia Discovery Fund (VCC) Inc.
    Todd Riley
    Sales & Marketing Director
    (604) 683-3000 ext. 115
    (604) 662-3457 (FAX)
    Email: info@discoverycapital.com
    Website: www.bcdiscoveryfund.com