March 03, 2008 16:04 ET

British Columbia Discovery Fund Provides Update on Redemptions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - British Columbia Discovery Fund (VCC) Inc. wishes to update its shareholders with respect to the policies of the Fund and rules that govern the Fund's current ability to process redemption requests.

1) Shareholders may not request redemption of their shares until after five years from the date of their investment, except in very limited circumstances (e.g., in the case of the death of a shareholder). Shareholders who purchased the 26,000 shares issued by the Fund on December 31, 2002 may now request redemption of their shares, the requisite five-year period having elapsed from the date of their investment. To date, holders of 11,960 of such shares have requested and received redemptions totaling $117,645. Commencing in March 2008 and for the balance of 2008, holders of a further 942,000 shares purchased in 2003 will be entitled to request redemption of their shares. At the current Pricing NAV per share of $9.53, shares of the Fund issued in 2002 and 2003 would represent a possible total of a further $9,111,061 in redemptions in 2008.

2) Redemptions in any year are subject to a limitation of 20% of the net asset value of the Fund at the beginning of that fiscal year. This limitation would result in a maximum of approximately $10.6 million of redemptions for 2008.

3) Although a shareholder may be entitled to request a redemption of shares, there are certain circumstances where the Fund may not be able to satisfy a redemption request. For example, the Fund cannot process a redemption where it would not be able to comply with the minimum investment requirements, or is otherwise prohibited to do so, under the Small Business Venture Capital Act ("SBVCA"). For 2008, the Fund has portfolio gains and investment income from investments and expected "matured" investments (which are investments that have been held by the Fund for the minimum required five-year period) which, under SBVCA policy, provide available funds to satisfy approximately $4.6 million of redemptions in 2008. Accordingly, the Fund would need further profitable portfolio realizations in order to meet any redemptions during 2008 in excess of that amount. The Fund's management team is working diligently to generate profitable realizations to match redemption requests into the future as closely as possible.

Redemption requests received by the Fund will be processed, in accordance with these policies and rules, on a first-come, first-served basis. The Fund is providing this information to all its shareholders to remind them of their redemption entitlements and the constraints applicable to those entitlements. Shareholders of the Fund are referred to the annual prospectus of the Fund where these matters are described in considerable detail.

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 $53 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 or

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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