BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.
Discovery Capital Corporation

Discovery Capital Corporation

February 03, 2005 19:46 ET

British Columbia Discovery Fund (VCC) Inc. and Discovery Capital Corporation: British Columbia Discovery Fund Sells Out 2004 Tax Credit Allocation


NEWS RELEASE TRANSMITTED BY CCNMatthews



FOR: BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.



AND DISCOVERY CAPITAL CORPORATION

TSX VENTURE SYMBOL: DVY

FEBRUARY 3, 2005 - 19:46 ET

British Columbia Discovery Fund (VCC) Inc. and
Discovery Capital Corporation: British Columbia
Discovery Fund Sells Out 2004 Tax Credit Allocation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 3, 2005) - British
Columbia Discovery Fund (VCC) Inc. and Discovery Capital Corporation
(TSX VENTURE:DVY)

Sale of 2005 Tax Credit Allocation to Commence February 7, 2005

Discovery Capital Management Corp., manager of British Columbia
Discovery Fund (VCC) Inc. (the "Fund" or "BCDF"), announces that the
Fund has sold out its 2004 tax credit allocation of $10 million and, as
a result, the Fund has suspended sales of its shares providing tax
credits for 2004.

British Columbia Discovery Fund will resume sales of its shares on
Monday February 7, 2005. Shares purchased on or after that date will be
eligible for 2005 tax credits. The Fund has a 2005 tax credit allocation
of $10 million, and a further allocation of $10 million for 2006.

"British Columbia Discovery Fund continues to be the largest VCC fund in
British Columbia, and has now reached $26 million in share sales with
the sell out of its 2004 tax credit allocation," commented John McEwen,
Chief Executive Officer of the Fund. "We believe the support received by
the Fund from investors and selling agents demonstrates confidence in
the experience and track record of the Fund's manager, Discovery
Capital. The Fund has made a total of seven investments to date, and we
look forward to announcing several more new investments based on the
opportunities that are under active review."

Eligible individual investors in the Fund receive a tax credit equal to
30% of the amount invested, to a maximum of a $60,000 tax credit per
annum. The tax credit on purchases of shares of the Fund until February
3, 2005, under the 2004 tax credit allocation, can be carried back and
applied against 2004 taxes payable. To the extent that the amount of the
tax credit exceeds an individual's British Columbia taxes otherwise
payable, the individual is entitled to a refund of the difference.
Shares in the Fund are eligible for RRSPs, RRIFs and RESPs. The tax
credit is also available to B.C. corporations to reduce taxes payable.

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, 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 approximately $26 million to
date. To obtain further information about the Fund, please contact a
registered advisor, or visit www.sedar.com or www.bcdiscoveryfund.com.

About Discovery Capital

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 250
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.

This press release does not constitute an offering of securities. The
prospectus of British Columbia Discovery Fund (VCC) Inc. dated March 12,
2004 contains important information pertaining to an investment in the
Fund, including management fees, expenses and commissions associated
with the Fund and risk factors. To obtain further information and a copy
of the prospectus of the Fund, please contact a registered investment
advisor, or visit www.sedar.com or www.bcdiscoveryfund.com.

Charles Cook, Chief Financial Officer

British Columbia Discovery Fund (VCC) Inc. and Discovery Capital
Corporation

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 issuers caution that actual performance
will be affected by a number of factors, many of which are beyond their
control. Future events and results may vary substantially from what the
issuers currently foresee.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Discovery Capital Corporation
    Charles Cook
    CFO
    (604) 683-3000 ext. 102
    or
    B.C. Discovery Fund
    Todd Riley
    Sales & Marketing Director
    (604) 683-3000 ext. 115
    (604) 662-3457 (FAX)
    info@discoverycapital.com
    www.discoverycapital.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this news
    release.