BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

January 15, 2007 14:18 ET

British Columbia Discovery Fund Makes Further Investment in Mobidia Technology, Inc.-Results in Increase to Pricing NAV Per Share

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 15, 2007) - British Columbia Discovery Fund (VCC) Inc. (the "Fund" or "BCDF") is pleased to announce that the Fund has made an investment of $1.25 million into Mobidia Technology, Inc. as part of a $3.75 million financing that includes existing investors Business Development Bank of Canada and BC Advantage Fund (VCC) Ltd. This financing was the second round of the Series A financings completed by Mobidia and brings the total Series A funding to approximately $7.0 million.

Mobidia's .wave™ (dot wave) multimedia services product set is an end-to-end solution that enables wireless network operators to profitably offer new services or applications, such as the sharing of user-generated content and mobile video, while setting new standards for the mobile user's quality of experience. A unique device-, network-, and application-aware architecture makes .wave the only source-based solution that enables wireless network operators to manage usage so they can deliver their paid services first, ahead of unpaid services, allowing them to generate revenues from premium level services.

"This latest round of funding will enable Mobidia to further develop its product set and focus our efforts on sales and marketing," said Gary Tauss, President and CEO of Mobidia. "We are seeing strong demand for our .wave solution from wireless network operators that want to differentiate their multimedia services and price them based on quality, customer experience, and usage behavior. These new funds will ensure that Mobidia has the necessary resources to accelerate this momentum."

"British Columbia Discovery Fund, Mobidia's largest investor, has stepped up its investment in Mobidia because the increasing demand for and excitement around mobile multimedia and other mobile applications is dramatically highlighting the commercial need for the Company's technology," said Charles Cook, CFO and Investment Manager of the Fund and a member of Mobidia's board of directors. "Mobidia recently introduced its .wave™ solution to certain wireless network operators, and we expect Mobidia will quickly become a leader in this evolving market."

"As a result of Mobidia's tremendous progress in product and business development, this recent financing has been negotiated at a higher value than the previous round, resulting in an increase to BCDF's Pricing NAV per Share of $0.10 when considering the aggregate increase to the valuation of the Fund's venture portfolio as a result of this investment," further commented Mr. Cook. "This is representative of the results we hope to report over the next six months as several of the Fund's investees are in the process of completing financings, which would reflect the exciting developments and achievements across BCDF's portfolio."

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

About Mobidia Technology, Inc.

Mobidia Technology, Inc., which is headquartered in Richmond, British Columbia, develops and sells a multimedia services solution that provides a better customer experience by managing service performance so the network operates better and provides the right level of service to every application. By improving multimedia service, Mobidia makes it faster and easier to share user-generated content such as photos, facilitates social networking, and enables the best use of multi-service phones. More information is available at www.mobidia.com.

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.

Charles Cook, CFO

BC 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.

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

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, B.C. Discovery Fund
    (604) 683-3000 ext. 115
    (604) 662-3457 (FAX)
    Email: info@discoverycapital.com
    Website: www.bcdiscoveryfund.com