BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.

July 16, 2007 17:21 ET

BC Discovery Fund Management Remains Committed to BC Discovery Fund

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Management of BC Discovery Fund (the "Fund") wishes to report on an agreement for the purchase of Discovery Capital Management Corp. ("DCMC"), the manager of the Fund, by its existing management team.

As background, on June 12, 2007, Discovery Capital Corporation announced that it had entered into an agreement with the current Discovery Capital management team lead by John McEwen, Harry Jaako and Charles Cook for the purchase by the management team of DCMC, Discovery Capital's management subsidiary and manager of BC Discovery Fund. A special committee of the board of directors of Discovery Capital ("Special Committee") had been formed to evaluate management's offer. On July 5, 2007, a third party announced that it had made an offer to the Special Committee to acquire DCMC, subject to a number of conditions.

On July 12, 2007, Discovery Capital entered into a revised agreement with the management team, providing for superior financial terms for the acquisition of DCMC. This agreement remains subject to approval by the shareholders of Discovery Capital, including by a "majority of the minority" (meaning shareholders other than Discovery Capital management). The Special Committee has reviewed the transaction and indicated that it will recommend approval by the minority shareholders of Discovery Capital.

Management of the Fund wishes to assure the Fund's shareholders of its deep and continuing commitment to its responsibility as manager of the Fund. States John McEwen, CEO of BC Discovery Fund, "We know that an important reason for shareholders of the Fund having made their investment choice is the track record and expertise of the Fund manager that has been demonstrated for over 20 years of venture capital investment in British Columbia. We are carrying through with our responsibilities to the shareholders and portfolio companies of the Fund, and we are committed to remaining your management team."

The independent directors of BC Discovery Fund have been kept informed of and are monitoring developments regarding the manager of the Fund.

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 offers its shares on a continuous basis and has raised approximately $43 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 Management Corp.

With over 20 years of venture capital experience in British Columbia, Discovery Capital is a venture fund manager through its wholly owned subsidiary, Discovery Capital Management Corp., and venture capital investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. Discovery Capital has proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity. Discovery Capital Management Corp. is the manager of British Columbia Discovery Fund (VCC) Inc., a British Columbia venture capital fund that has raised approximately $43 million to date and has investment interests in eleven developing technology companies.

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

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

Contact Information

  • British Columbia Discovery Fund (VCC) Inc.
    Charles Cook
    CFO
    (604) 683-3000 ext. 102 or 1-877-553-3863
    or
    British Columbia Discovery Fund (VCC) Inc.
    Todd Riley
    Sales & Marketing Director
    (604) 683-3000 ext. 115 or 1-877-553-3863
    (604) 662-3457 (FAX)
    Email: info@discoverycapital.com
    Website: www.bcdiscoveryfund.com