Dacha Capital inc.

Dacha Capital inc.

October 16, 2007 12:45 ET

Dacha Capital Inc. Calls Special Meeting of Shareholders to Approve Arrangement With Groupe Distinction inc.

MONTREAL, QUEBEC--(Marketwire - Oct. 16, 2007) - Dacha Capital Inc. ("Dacha") (TSX VENTURE:DAC) announces the mailing of its management proxy circular for the special meeting of shareholders to be held in Montréal on November 12, 2007. The shareholders will be asked to vote on a special resolution to approve the previously announced arrangement with Groupe Distinction Inc. ("Distinction").

On August 29, 2007, Dacha and Distinction signed an arrangement agreement, pursuant to which Newco, currently a wholly-owned subsidiary of Dacha, will amalgamate with Distinction to create a new public company, Amalco. On the effective date of the arrangement, the shares of Amalco will ultimately be redistributed by Dacha to its shareholders on a tax free basis; each shareholder of Dacha will retain its then current shares and in addition, will receive one common share of Amalco for each Dacha common share held and one common share purchase warrant of Amalco for each four Dacha common shares held. It is anticipated that the effective date of the arrangement will be approximately November 15, 2007.

After the effective date, it is anticipated that Amalco will complete a private placement and will issue 1,048,768 common shares of its capital stock at $1.907 per share, for aggregate proceeds of $2,000,000.

Following the completion of the arrangement and contemplated private placement, an aggregate of 29,107,604 shares of Amalco will be issued and outstanding. It is expected that the current shareholders of Dacha will then own approximately 15% of all the issued and outstanding shares of Amalco to be renamed Groupe Distinction inc.

An application has been made to have Amalco listed on the Toronto Stock Exchange as soon as practically reasonable following the effective date. Dacha will remain listed on the TSX Venture Exchange.

All the relevant information about the arrangement, Distinction and Amalco is contained in the management proxy circular of Dacha, which can be found at SEDAR.com.

About Dacha

Dacha is a Québec based public company involved in the venture capital business. Its common shares have been listed on the TSX Venture Exchange under the symbol "DAC" since October 2002.

About Distinction

Distinction is a Canadian leader in janitorial services. Through its subsidiary company Service d'entretien Distinction Inc. and 3,000 employees throughout Canada, Distinction offers services in various sectors of the janitorial industry, such as office buildings, commercial buildings, factories, bio-pharmaceutical laboratories or institutional and health establishments.

Distinction's network comprises it's subsidiary companies: Montcalm Services Techniques providing building operations and maintenance services, Distinction Plus a micro franchise infrastructure where a network of 400 franchises operates more than 2,000 projects throughout Quebec and Ontario and Steamatic Canada inc. a leading Canadian franchisor where a network of 54 franchises provides disaster restoration services.

The TSX-V has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

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