BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

January 03, 2008 12:47 ET

British Columbia Discovery Fund Receives Increase in 2008 Tax Credit Allocation to $13 Million and Commences 2008 Sales on January 2, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 3, 2008) - British Columbia Discovery Fund (VCC) Inc. is very pleased to announce that the Fund has received an increase in its 2008 tax credit allocation from the Investment Capital Branch of the B.C. Ministry of Economic Development to raise up to $13 million. As was previously announced, the Fund sold out its 2007 allocation of $10 million in October 2007. The Fund's 2009 and 2010 tax credit allocations were also increased to $13 million for each of those years.

As well, the Fund can commence sales of shares qualifying for a tax credit for the 2008 tax year on January 2, 2008. Purchases of shares of the Fund in the first 60 days of 2008 may be used as an RRSP contribution for 2007, but will NOT qualify for a 2007 tax credit.

"2007 was a very successful year for BC Discovery Fund, highlighted by portfolio company Day4 Energy completing its initial public offering and the Fund's fastest ever sell-out of its annual tax credit allocation," remarked John McEwen, CEO of the Fund. "We are very pleased that the Branch has increased the tax credit allocation to the Fund, and we look forward to ongoing portfolio investment and sales successes in 2008."

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 focussed on 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, which offers its shares on a continuous basis, has raised over $52 million to date and has investments in eleven developing technology companies. To obtain further information about the Fund, please contact a registered advisor or visit www.sedar.com or www.bcdiscoveryfund.com.

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc.

This press release is not an offer to sell or a solicitation of an offer to buy common shares. This press 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.

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