TriNorth Capital Inc.
TSX : TRT

TriNorth Capital Inc.

May 12, 2006 10:17 ET

TriNorth Capital Announces First Quarter 2006 Results

TORONTO, ONTARIO--(CCNMatthews - May 12, 2006) - TriNorth Capital Inc. (TSX:TRT) reported a net loss of $89,000 ($0.00 per share) for the three months ended March 31, 2006 compared with a net loss of $183,000 ($0.01 per share) for the same period in 2005. The 2005 results reflected primarily the amortization of the purchase price discrepancy in respect of its equity-accounted investees of $134,000 and its share of loss from its equity-accounted investees of $16,000. The purchase price discrepancy was fully amortized by the end of 2005. General and administrative expenses for the first quarter of 2006 were $156,000 (2005: $169,000) and gain on sale of marketable securities was $42,000 (2005: $104,000).

Revenue, comprised of interest and other income, for the first quarter was $25,000 compared with $33,000 for the same period last year.

At March 31, 2006, TriNorth had $3,988,000 in cash and marketable securities (at quoted market value, a non-GAAP measure) and $1,806,000 (at book value) in investments in privately held and publicly traded technology-based businesses. In March 2006, the Company sold all its shares in Intelligent Mechatronic Systems for proceeds of $1,931,000, which was the carrying value of the investment. During the period the Company increased its investment in SilverBirch Inc., a developer, publisher and distributor of games and other entertainment content for mobile phones and wireless devices. TriNorth now has equity interests in two privately held investees - Vitalink Worldwide, which operates as Business.ca, and VFM Interactive Inc. - and two publicly traded investees - Biorem Inc. (TSXV: BRM) and SilverBirch Inc. (TSXV: SVB).

TriNorth's President & Chief Executive Officer, John Pennal, said the Company is in the process of establishing two new Asian based businesses. "The first business will focus on the recovery of distressed debt and assets owned by western companies in China. In the four years that TriNorth spent on the successful recovery of debt owed by the Guilin Tire Company, valuable expertise was gained and contacts established which will be utilized in this new business."

The second business is the distribution in Asia of content (ringtones, games and wallpaper) for mobile phones. This business will be positioned as a gateway for North American and European content developers, such as Silverbirch, to access the rapidly growing Asian mobile markets through carriers and portals.

TriNorth's unaudited financial statements for the three months ended March 31, 2006 and the related Management's Discussion and Analysis can be accessed electronically at www.sedar.com.

TriNorth Capital Inc. is a Canadian-based investment company that has investments in privately held and publicly traded high growth potential companies, cash resources and substantial tax losses to shelter future income and investment gains.

TriNorth has approximately $0.22 per share in cash and marketable securities at current market value, computed other than in accordance with GAAP. The book value of the privately held venture investments and the current value of the publicly traded venture investments total approximately $0.11 per share, computed other than in accordance with GAAP, which includes no value for the investment in Business.ca which has been fully written off under GAAP.

For more details about TriNorth and its investments please visit its website at www.trinorthcapital.com.

This release contains forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, and such forward looking statements should not be unduly relied upon. These statements speak only as of the date of this release, and are subject to a number of risks and uncertainties, including the factors discussed in the Company's current and previous filings with the Canadian securities regulatory authorities. Actual results could differ materially from these forward-looking statements.

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